Shares of Dalmia Bharat Ltd. and Ramco Cements Ltd. fell for the second day after the Tamil Nadu government imposed a ₹160 per tonne royalty on limestone mining.Ramco Cements in a statement said the government is yet to notify the date on which this Act will come into force and also yet to make the rules for carrying out the purposes of this act.
The rules may provide for the manner of levy, assessment and collection of tax, manner of payment of tax, etc, the company said in an exchange filing.
Cement is already suffering high incidence of taxes and duties. Ramco Cements said the imposition of new tax would adversely affect the cement industry in Tamil Nadu and make cement costlier at the hands of the end user.It is also felt that the rates proposed by the Tamil Nadu government are also on the higher side, compared to the rates of the neighbouring states. Hence, the company proposed to represent to the Tamil Nadu government, to reconsider the proposal to levy mineral bearing land tax.
The rules may provide for the manner of levy, assessment and collection of tax, manner of payment of tax, etc, the company said in an exchange filing.
Cement is already suffering high incidence of taxes and duties. Ramco Cements said the imposition of new tax would adversely affect the cement industry in Tamil Nadu and make cement costlier at the hands of the end user.It is also felt that the rates proposed by the Tamil Nadu government are also on the higher side, compared to the rates of the neighbouring states. Hence, the company proposed to represent to the Tamil Nadu government, to reconsider the proposal to levy mineral bearing land tax.
Meanwhile, Dalmia Bharat said the said levy is likely to have an impact of about ₹130 crore per annum which the company will try to pass on to its customers.
Upon notification, the aforesaid tax may impact all Tamil Nadu based cement producers, including the company.
The increased tax will be applicable from February 20, 2025.
Ramco Cements has one of the largest clinker capacities in Tamil Nadu.
Dalmia Bharat and Ramco Cements have approximately 20%-50% of their clinker capacity in Tamil Nadu.
How much of Clinker capacity is in Tamil Nadu?
Dalmia: 20-25%Ramco: 50%
Shares of Dalmia Bharat Ltd. closed 1.89% lower at Rs 1,610.05, while the Ramco Cements stock ended 2.42% lower at Rs 800.25.
First Published: Mar 13, 2025 5:24 pm IS
