Dalmia Bharat Limited has announced a significant development following the Central Government’s amendment to the Mines and Minerals (Development and Regulation) Act. Effective August 22, 2026, state governments can no longer impose taxes, cess, or other levies on mineral rights or mineral-bearing lands. This change renders previously levied taxes, including the Mineral Bearing Land Tax and Mineral Cess paid by Dalmia Bharat, invalid. Consequently, the company and its subsidiaries are no longer required to pay these taxes, leading to potential cost savings.
Government Mandates End to Mineral Levies
Dalmia Bharat Limited has officially notified stakeholders about a pivotal amendment to the Mines and Minerals (Development and Regulation) Act, 1957. This amendment, introduced via the Mines and Minerals (Development and Regulation) Amendment Act, 2026, and notified on August 22, 2026, places restrictions on the imposition of taxes, cess, and other levies by State Governments on mineral rights and mineral-bearing lands. The legislation ensures that any levies not paid or collected by the State prior to the amendment’s effective date are deemed invalid.
Impact on Dalmia Bharat’s Operations
Prior to this amendment, Dalmia Bharat and its subsidiaries were incurring substantial costs related to mineral taxation. These included Mineral Bearing Land Tax at ₹160 per ton of limestone in Tamil Nadu, ₹10 per ton in Assam, and a Mineral Cess of ₹60 per ton in Meghalaya. In the financial year FY26, the company paid approximately ₹127 crore towards these levies, with an additional ₹38 crore paid so far in the current FY27. With the MMDR Act amendment now in effect, Dalmia Bharat and its subsidiaries are no longer obligated to pay Mineral Bearing Land Tax and Mineral Cess from August 22, 2026, onward. Amounts already deposited or recovered by the state before this date remain unaffected by the refund provision.
Source: BSE
