The Centre enacted the act to regulate and restrict the imposition of certain taxes, cess and other levies by State Governments in respect of mineral rights and mineral-bearing lands, the company said in a statement.
The amendment provides restrictions on the imposition of any levy on mineral rights or mineral-bearing lands, except in accordance with such conditions or restrictions as may be prescribed by the Central Government, it added.
Ramco said it has been incurring an amount of Rs.160/- per tonne of limestone towards Mineral Bearing Land Tax in the State of Tamil Nadu, which has enacted by the State government post Supreme Court verdict.
The company paid Rs 171.78 crore towards Mineral Bearing Land Tax in 2025-2026 and Rs 79.07 crore till date in 2026-2027.
In view of the provisions of the Mines and Minerals (Development and Regulation) Amendment Act, Ramco said the company is not required to pay Rs.160/- per limestone, towards Mineral Bearing Land Tax, with effect from 22nd August 2026.
The cessation of this levy is expected to result in a corresponding reduction in the Company’s operating costs and consequently have a favourable impact on the Company’s profitability and cash flows, it said.
Tamil Nadu government in the revised budget for 2026-2027, has projected a revenue of over Rs 3,000 crore from Mineral Bearing Land Tax. That might be affected now. It would be interesting to see what stance the State takes. Reportedly some states also planning to move Supreme Court against the amendment.