Cement industry is one of the major energy consuming industries having a high priority in energy conservation. In India energy conservation in this industry is particularly important in view of the present size of this industry and the rapid expansion being registered by this industry which is expected to continue for several decades to come. Energy conservation has to be achieved through a multidirectional strategy of carrying out indigenous research and development activities on the one hand and by adopting newer developments in the area of energy conservation taking place internationally and then tuning the technology to meet the special requirements of the Indian cement industry, i.e., marginal grade raw materials and poor quality of fuel and power. The challenges are many, but through proper identification of priorities, adopting appropriate technological approaches and sustained energy management efforts, the industry can achieve substantial energy savings.