Water scarcity is one of India’s most pressing sustainability challenges, and its cement industry is increasingly grappling with the imperative to manage water as a critical resource. As India emerges as the world’s second largest cement producer - with production expected to increase significantly by 2030 - ensuring sustainable water use in cement plants is no longer optional. It is a business imperative linked to regulatory compliance, community trust, operational resilience, and competitive advantage.
In this post, we detail how India’s cement sector is taking bold strides to transform water challenges into opportunities, outline emerging regulatory frameworks, showcase innovative technologies, and propose practical steps for cement plants to future-proof their operations against water stress.
The Water Challenge
India is home to roughly 700 million tonnes per annum (MTPA) of installed cement capacity, making it the second largest producer worldwide. Much of this production occurs in water-stressed regions such as Rajasthan, Andhra Pradesh, Chhattisgarh, and Maharashtra. [1]
Water is indispensable in cement production processes: for raw material preparation, dust control, grinding, cooling, and concrete batching. However, groundwater depletion and erratic rainfall patterns have made sourcing and managing freshwater a critical operational risk.
A 2020 industry report highlights targets by leading companies, such as Dalmia Cement aiming to become 20 times water positive by 2025 by focusing on watershed management and water recycling initiatives. [2]
Projected Decline in Water Intensity (m³ per ton clinker)
2020 - 2030
YoY Water Consumption
Indian cement plants are steadily optimizing process water usage through a suite of technologies and process changes. Water intensity is projected to reduce by about 55% by 2030 compared to 2020 levels, according to industry modeling and surveys.
Water Recycling Rate in Indian Cement Plants (%)
Water Recycling Rate YoY
Regulatory Landscape: Stricter Rules Driving Change
Zero Liquid Discharge (ZLD) Maturity
Many Indian states have enforced or proposed strict regulations mandating Zero Liquid Discharge (ZLD) , meaning no untreated water leaves the plant boundary. This aligns with national water conservation goals, environmental protection norms, and increasing public scrutiny. [3]
CPCB and State PCBs’ Role
The Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) require plants to submit detailed water audits, consumption reports, and demonstrate water savings initiatives, with penalties for violations. [4] [3]
Policy and Financial Incentives to Boost Sustainability
Government programs incentivize adoption of rainwater harvesting, effluent treatment systems, and water-positive initiatives through subsidies, tax breaks, and recognition awards. [3]
Implication for Businesses:
Water sustainability compliance is increasingly part of environmental clearances.
Plants ignoring water stewardship risk fines, operational halts, and loss of social license.
Community Engagement: The Industry’s Amplifying Role
Realizing that their operations impact local water ecosystems and communities, cement manufacturers are shifting from transactional to collaborative water stewardship.
Large companies develop watershed management projects , partnering with farmers and local governments.
Investment in infrastructure such as check dams, reservoir restoration, and drip irrigation serves dual goals of community water security and industrial water availability. [3]
Using abandoned mines as water harvesting reservoirs boosts plant resilience while improving local water security.
Advanced Sludge Management & Reuse
Innovations in sludge dewatering, composting, and co-processing in kilns are enabling cement manufacturers to treat sludge as a resource. Properly processed sludge can serve as a secondary raw material or alternative fuel, reducing both water pollution and waste management costs.
Electrochemical & Nanotechnology-Based Treatment
Emerging treatment methods use electro-coagulation and nano-adsorbent filters to target heavy metals, high TDS, and other pollutants typical in cement wastewater. These methods reduce chemical usage compared to conventional dosing, improving both sustainability and long-term O&M efficiency.
Modular & Containerized Treatment Plants
Instead of large, centralized units, plants are adopting plug-and-play modular water treatment systems. These are faster to deploy, require lower CAPEX, and can be scaled up or reconfigured as demand changes — making them ideal for cement plants in regions with fluctuating water availability.
Heat Recovery Coupled with Water Reuse
Some plants now integrate waste heat recovery systems with water treatment units, using excess thermal energy from kilns to power evaporators or distillation processes. This dual integration cuts energy and water footprints simultaneously.
AI-Powered Compliance Dashboards
Compliance itself is becoming digital-first: AI-driven dashboards now aggregate pH, BOD, COD, and flow data from multiple points in real time. Automated reporting to SPCBs or EPA systems minimizes manual errors, ensures audit-readiness, and flags potential violations before they escalate.
Wet Process Optimization & Drying Technologies
While dry processes already save water compared to wet kilns, new low-moisture raw mix pre-treatment technologies are further reducing the need for water in material preparation. This not only lowers water demand but also improves thermal efficiency in clinker production.
Business Benefits of Water Sustainability
Risk Management: Lower exposure to water shortages and price volatility.
Cost Optimization: Savings in water procurement, treatment, and pollution penalties.
ESG Credentials: Align with investor expectations and national sustainability goals.
Brand Loyalty: Community goodwill enhances reputation and customer preference.
Permit & Growth Acceleration: Water-positive plants negotiate better with regulators.
The Path Forward: India Cement Water Sustainability Roadmap
Leading industry reports project:
Most Indian plants will achieve water-neutral or net-positive status by 2030 .
Regulatory reporting on water “footprint” will become mandatory, increasing transparency.
Integration with low-carbon goals and circular economy principles will accelerate innovation.
Continuous improvement through digital twins and AI for real-time water flow optimization will become standard practice.
Take Action: Steps to Future-Proof Your Cement Plant
Water Audit: Identify and prioritize water use areas and loss points.
Invest in Recycling & Treatment: Upgrade to closed-loop systems, bio-treatment, evaporation technologies.
Community Partnerships: Engage in local watershed and recharge projects.
Smart Water Management: Deploy IoT monitoring and AI predictive tools.
Comply Proactively: Align with CPCB/SPCB regulations and sustainability disclosures.
Conclusion
India’s cement industry is at a transformative juncture. Water sustainability is both a challenge and a tremendous opportunity. Forward-thinking plants will embed water stewardship into their operational DNA, leveraging regulation, innovation, and community collaboration. Doing so will future-proof their business against resource constraints, win trust, and position for long-term success in India’s dynamic infrastructure growth story.
Sources
https://www.cmaindia.org
https://indiancementreview.com/2020/01/05/target-is-to-become-20-times-water-positive-by-2025/
https://www.cmaindia.org/making-every-drop-count
https://gccassociation.org/wp-content/uploads/2024/11/GCCA-Cement-Industry-Progress-Report-202425.pdf
https://cefic.org/case-study/reducing-water-use-in-concrete-production/
https://www.mckinsey.com/industries/engineering-construction-and-building-materials/our-insights/the-future-cement-industry-a-cementitious-golden-age
https://gccassociation.org/news/gcca-india-and-teri-launch-decarbonisation-roadmap-for-the-indian-cement-industry-net-zero-c0₂-by-2070/
https://teriin.org/files/Decarbonisation-Roadmap-for-the-Indian-Cement-Sector.pdf
https://www.niti.gov.in/sites/default/files/2025-03/Report _Workshop on CCUS in Indian Cement Sector.pdf
https://www.ifc.org/content/dam/ifc/doc/2025/2025-strengthening-sustainability-in-the-cement-industry.pdf
https://www.jswcement.in/pdf/Industry-Report.pdf
https://www.sciencedirect.com/science/article/pii/S2212827120301475
https://www.ceew.in/sites/default/files/How-Can-India-Decarbonise-For-Net-Zero-Sustainable-Cement-Production-Industry.pdf
https://www.globenewswire.com/news-release/2025/03/11/3040848/28124/en/India-Green-Cement-Industry-Report-2025-Market-Trends-Region-Insights-Competition-Forecast-Opportunities-2020-2030-Government-Targets-500-GW-Renewable-Energy-Capacity-Boosting-Dema.html