The green energy transition is likely to gain momentum in India’s cement sector, with rating agency, ICRA in its latest report forecasting India’s major cement producers to significantly scale up green power capacity to 5.8-6.0 GW by March 2028, from around 4.0 GW as of March 2026. The expansion will be supported by Rs 12,000-13,000 crore of investments over the next two years and could help companies save Rs 6,200-6,700 crore annually, implying an attractive payback period of 1.8-2.2 years.
According to the report, while cement remains one of the most emission-intensive industries, the major cement producers have laid out net-zero emission roadmaps over the next 15-20 years. The calcination process accounts for 57-60% of total emissions, while fuel combustion and electricity consumption account for 27-30% and 10-13%, respectively. This underscores the need for a multi-pronged decarbonisation strategy.
ICRA further noted that the Indian cement industry is accelerating its decarbonisation efforts through increased adoption of green power, blended cement, alternative fuels and clinker efficiency improvements. Apart from sustainability commitments, this transition is also being driven by the need to mitigate fuel cost volatility and enhance cost competitiveness.
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