Central Government Amendment Restricts State Taxes on Mineral Rights, Citing MMDR

Central Government Amendment Restricts State Taxes on Mineral Rights, Citing MMDR
<h1>Central Government Amendment Restricts State Taxes on Mineral Rights, Citing MMDR</h1>

Dalmia Bharat Limited has confirmed that changes brought by the Central Government via a recent amendment to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR), mean the company and its subsidiaries are no longer required to pay Mineral Bearing Land Tax and/or Mineral Cess, effective August 22, 2026.

The Mines and Minerals (Development and Regulation) Amendment Act, 2026, was notified on August 22, 2026. This amendment restricts the imposition of taxes, cess, and other levies by State Governments on mineral rights or mineral-bearing lands.

The legislation further clarifies that while any levy not paid or collected by the State before the Amendment Act 2026 is deemed invalid, amounts already deposited or recovered before the amendment are not liable to be refunded.

The company previously paid various taxes and cess across different states regarding mineral rights. These payments included Mineral Bearing Land Tax at Rs. 160 per ton of limestone in Tamil Nadu, and Mineral Bearing Land Tax at Rs. 10 per ton of limestone in Assam. Additionally, the company paid Mineral Cess at Rs. 60 per ton of limestone in Meghalaya.

Financial details regarding these historical payments are as follows:

Tax/Cess CategoryRateState
Mineral Bearing Land TaxRs. 160 per tonTamil Nadu
Mineral Bearing Land TaxRs. 10 per tonAssam
Mineral CessRs. 60 per tonMeghalaya

The total amounts paid by the company towards these levies were reported as Rs. 127 Cr in FY26 and Rs. 38 Cr so far in the current financial year FY27.

As a result of the amended provisions of the MMDR, the company confirmed that, effective August 22, 2026, the payment obligation for Mineral Bearing Land Tax and/or Mineral Cess has ceased.

DALBHARAT Stock Price Movement​

On Monday, shares of Dalmia Bharat Limited shed value, settling at ₹1853 after slipping 1.44% during the trading session. The stock was traded for a total of 361,388 shares as it closed.
 

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