The central amendment to mines legislation removed a Rs 160 per tonne (t) levy on limestone in Tamil Nadu, a change that took effect on August 22, 2026 under the Mines and Minerals (Development and Regulation) Amendment Act, 2026. The amendment restricts states from imposing taxes or levies on mineral rights and mineral-bearing land except as prescribed by the central government. The removal directly eliminates a material component of raw material cost for cement producers.

Ramco Cements had been paying the levy as a mineral bearing land tax and reported payments totalling Rs 1,717.8 million (mn) in FY26 and Rs 790.7 million (mn) in FY27 so far. Those payments equate to a substantial raw material cost for the producer. Limestone is the principal raw material for cement, so the levy translated into a per tonne production cost.

The previous tax outgo in FY26 exceeded the company’s standalone net profit in the latest quarter by more than five times, with the quarter net profit at Rs 320 mn. While the eventual annual benefit will depend on mined volumes and operational factors, the removal is likely to reduce operating costs and improve cash flow and profitability compared with the prior tax burden. The company noted that this change removes one direct raw material expense, though it will not address other pressures.

In the April–June quarter Ramco Cements’ standalone net profit fell 62.8 per cent to Rs 320 mn from Rs 860 mn a year earlier, while revenue rose 9.6 per cent to Rs 22,690 mn from Rs 20,700 mn. EBITDA declined 22.7 per cent to Rs 3,070 mn as higher fuel and packing material costs following the West Asia war and a five per cent year-on-year fall in realisation weighed on margins. The limestone levy removal may therefore temper some cost pressures but will not resolve fuel or pricing headwinds. Shares closed Rs 909 on the NSE on August 24, gaining Rs nine point nine five during the session.