Dalmia Bharat to Save ₹127 Cr Annually as Govt Restricts Mineral Taxes
Dalmia Bharat and its subsidiaries will no longer pay Mineral Bearing Land Tax and Mineral Cess from August 22, 2026, following a government amendment. The company paid ₹127 crore in FY26 and ₹38 crore in FY27 towards these levies. This regulatory change is expected to significantly reduce annual expenses.
The cessation of Mineral Bearing Land Tax and Mineral Cess, which amounted to ₹127 crore in FY26, will have a substantial positive impact on the company's profitability and cash flow.
The amendment by the Central Government restricting state-imposed taxes on mineral rights is a positive development for Dalmia Bharat, as it will cease payment of significant annual taxes and cesses, leading to cost savings.
Dalmia Bharat Limited has announced that the Central Government, through the Mines and Minerals (Development and Regulation) Amendment Act, 2026, notified on August 22, 2026, has amended the MMDR Act, 1957. This amendment restricts State Governments from imposing taxes, cess, and other levies on mineral rights or mineral-bearing lands. Any levy not paid or collected before the amendment is now deemed invalid, although amounts already paid are not subject to refund.
Previously, the company and its subsidiaries were paying Mineral Bearing Land Tax of ₹160 per ton of limestone in Tamil Nadu, ₹10 per ton in Assam, and Mineral Cess of ₹60 per ton in Meghalaya. These payments amounted to ₹127 crore in FY26 and ₹38 crore in the current year, FY27, up to August 22, 2026.
With the amended provisions of the MMDR Act, Dalmia Bharat and its subsidiaries will no longer be required to pay these taxes and cesses effective from August 22, 2026. This change is expected to result in significant annual savings for the company.
A plain-language summary of a public exchange filing by Dalmia Bharat Limited. Read the original for the full detail.