Ramco Cements Relief in Tamil Nadu Following Central Amendments to Mining Act

The Ramco Cements Ltd has informed the stock exchanges that it will no longer be required to pay the Mineral Bearing Land Tax of ₹160 per tonne of limestone in Tamil Nadu. The development follows the enactment of amendments to the Mines and Minerals (Development and Regulation) Act, 2026 by the Central government.

According to the company's regulatory filing made on Monday, the amended legislation restricts State governments from imposing certain taxes, cess, and other levies on mineral rights and mineral-bearing lands, unless subject to conditions prescribed by the Centre.

Prior to the amendment, the cement manufacturer had made substantial payments under the levy. The company paid ₹171.78 crore to the Tamil Nadu government during the 2025-26 period. Additionally, it paid another ₹79.07 crore during the current financial year up to August 24.

With the amended provisions coming into effect, Ramco Cements stated that it is exempt from paying the levy starting from August 22.

The company noted in its regulatory filing that the cessation of this tax burden will reduce its operating costs. Furthermore, the removal of the levy is expected to have a favourable impact on the firm's profitability and cash flows moving forward.

"Regulatory changes by the Central government regarding mineral-bearing land taxes provide direct financial relief to heavy industries like cement manufacturing. For companies operating in sectors with high input and regulatory costs, the removal of such state-level levies significantly improves operational margins and cash flow visibility. This development highlights how legislative adjustments can immediately influence corporate profitability and cost structures in capital-intensive industries." — Dr. Shishir Gupta, Founder & CEO, StartupLanes