Star Cement and its subsidiaries will no longer be required to pay Mineral Cess on Shale and Limestone, effective from August 22, 2026. This follows an amendment to the Mines and Minerals (Development and Regulation) Act, 2026, by the Central Government. The amendment restricts the imposition of taxes and levies by state governments on mineral rights, deeming any unpaid or uncollected levies before this date invalid. The company previously paid ₹25 per tonne on Shale and ₹60 per tonne on Limestone in Meghalaya.
Government Act Halts Mineral Levies
Star Cement Limited has announced a significant change impacting its operational costs following the Central Government’s amendment to the Mines and Minerals (Development and Regulation) Act, 1957. The new legislation, known as The Mines and Minerals (Development and Regulation) Amendment Act, 2026, was notified on August 22, 2026. This amendment aims to restrict the imposition of taxes, cess, and other levies by State Governments on mineral rights or mineral-bearing lands.
Impact on Cess Payments
Under the new provisions, any levy not paid or collected by the State before the enactment of the Amendment Act 2026 is now considered invalid. Consequently, Star Cement and its subsidiaries are no longer obligated to pay Mineral Cess on Shale, which was previously charged at ₹25 per tonne, and Mineral Cess on Limestone, at ₹60 per tonne, in the State of Meghalaya. The company reported paying ₹35.50 Crore in FY26 and ₹10.15 Crore in the current FY27 towards these levies.
Cess Payment Discontinuation
As a direct result of the amended MMDR Act, Star Cement stated that the company and its subsidiaries are now exempt from paying Mineral Cess. This cessation of payments is effective from August 22, 2026, marking a potentially substantial reduction in operational expenses moving forward. The amendment ensures that such levies can only be imposed under conditions prescribed by the Central Government.
Source: BSE
