The Ramco Cements Limited announced the cessation of Mineral Bearing Land Tax effective August 22, 2026. This follows the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2026. The company previously incurred approximately Rs.160/- per tonne of limestone towards this tax in Tamil Nadu. The cessation is expected to significantly reduce operating costs and improve profitability and cash flows.
Mineral Bearing Land Tax Ends
The Ramco Cements Limited has confirmed that the Mineral Bearing Land Tax, a significant operating cost, will cease to apply effective August 22, 2026. This development is a direct result of the recently enacted Mines and Minerals (Development and Regulation) Amendment Act, 2026. This new legislation aims to regulate and restrict the imposition of certain taxes and levies by State Governments on mineral rights and mineral-bearing lands.
Financial Impact Expected
Historically, The Ramco Cements incurred an expense of approximately Rs.160/- per tonne of limestone as Mineral Bearing Land Tax in the State of Tamil Nadu. The company reported payments of Rs.171.78 crores for the period 2025-2026 and Rs.79.07 crores for 2026-2027 (till date) towards this tax. The discontinuation of this levy is anticipated to lead to a corresponding reduction in the company’s operating expenses. This, in turn, is expected to have a favourable impact on The Ramco Cements’ overall profitability and cash flow position.
Source: BSE
