Chennai | August 29, 2026 | INFRAINTEL Bureau
Tamil Nadu has discontinued the Mineral Bearing Land Tax of Rs 160 per tonne on limestone, reducing a direct input-cost burden for cement manufacturers operating in the state.
The levy had applied from April 4, 2025. Its withdrawal follows Parliament’s passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, on August 13.
Industry estimates cited in the source suggest the tax had added approximately Rs 150 crore to one producer’s limestone cost in 2025-26. A securities-firm assessment estimated combined annual savings of around Rs 500-600 crore for five major cement companies.
Tamil Nadu-focused producers including Ramco Cements, India Cements, Dalmia and Chettinad are expected to benefit, although the impact will vary with captive limestone use, production volumes and operating structure.
The removal should improve margins or reduce pressure for price increases, but the eventual benefit to buyers will also depend on fuel, freight and other raw-material costs, market competition and demand. Company-specific gains cited by analysts should be treated as estimates until reflected in audited financial results.