Chennai: Cement makers in the South, particularly those focused on Tamil Nadu, have heaved a sigh of relief following the cessation of the Mineral Bearing Land Tax (MBLT) of Rs 160 per tonne of limestone in the state.The move is in line with the MMDR Amendment Bill, 2026, which was passed by both Houses of Parliament on August 13, 2026. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), with the aim of bringing long-term stability to the major minerals sector.The amendment does not take away States’ rights over land and minerals or taxes on minerals already collected by them. Around 90% of total taxes and statutory payments from mining currently accrue to the States, and this arrangement will continue. The amendment does not affect the power of States to regulate and impose taxes on minor minerals. State authority over these minerals will continue as before.The withdrawal of the MBLT on limestone, a key raw material for cement production, provides much-needed cost relief to cement manufacturers, particularly amid elevated global crude oil and fuel prices.The Tamil Nadu govt imposed the Mineral Bearing Land Tax at Rs 160 per tonne of limestone with effect from April 4, 2025. This triggered a sharp increase in cement prices across South India. While some of the price hikes were subsequently rolled back, the levy put pressure on manufacturers’ margins and affected their bottom lines. “The levy of the tax resulted in an increase in limestone costs of Rs 150 crore in FY26 compared with the previous year,” said a cement maker. The TN govt had notified the Rs 160-per-tonne rate for limestone under the MBLT Act.The MMDR amendment could result in annual savings of around Rs 500–600 crore for five key Tamil Nadu-focused cement players, including Ramco, India Cements, Dalmia and Chettinad, with Ramco Cements emerging as the biggest beneficiary, according to an analysis by Equirus Securities.According to estimates, cement makers such as Ramco, India Cements, Chettinad and Dalmia have together paid more than ₹500 crore in MBLT in FY26. “No other state imposed this levy. With its cessation, all cement makers will benefit, which will help improve their bottom lines,” a top official of a leading cement firm told TOI.
