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Ramco cement has notified that, due to imposition of MMDR (Mines and Minerals Development and Regulation) act 2026 from central government

ICICIdirect Research 25 Aug 2026 DISCLAIMER

News: Ramco cement has notified that, due to imposition of MMDR (Mines and Minerals Development and Regulation) act 2026 from central government, they are not required to pay Rs.160/ton of limestone tax levied in Tamil Nadu. The company paid Rs 171.8 crores in FY26 and Rs 79.1 crores so far in FY27. Dalmia Bharat has also notified that they are not required to pay Rs.160/ton of limestone tax levied in Tamil Nadu, Rs 10/ton levied in Assam and Rs 60/ton levied in Meghalaya. The company paid Rs 127 crores in FY26 and Rs 38 crores so far in FY27

View: This is a positive development for the companies catering to Tamilnadu and Northeast region as it will result in reduction of operating costs related to limestone mining. Removal of this duty will result in positive impact of ~Rs 85-90/ton on EBITDA/ton for Ramco Cements and ~Rs 40-45/ton for Dalmia Bharat. Other companies like Star cement (Northeast presence) and India cements (Tamilnadu presence) will see positive impact of ~Rs 55-60/ton

Impact: Positive

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