Dalmia Bharat, Nuvoco, Star Cement, others fear business hit as West Bengal revokes incentives

Dalmia Bharat

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The shares of key cement makers fell on June 9, fearing business hit due to West Bengal government's decision to retrospectively revoke several grants under various incentive schemes, with Dalmia Bharat shares down over a percent in early trade.

In an exchange filing released post market hours of June 6, Dalmia Bharat said Rs 236 crore worth of incentives earlier granted to wholly-owned subsidiary Dalmia Cement (Bharat) may be adversely impacted, as a result of West Bengal government's decision. "The Company is examining the Revocation Act and considering all legal options including challenging the legal validity and retrospective applicability of the Revocation Act," it said.

Nuvoco Vistas Corporation, which is a leading cement player in East India, saw its shares drop over 1 percent, while those of Star Cement were trading in the red with marginal losses.

Chief Minister Mamata Banerjee-led West Bengal government had passed the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill 2025 in March this year, which was to subsequently come into force. While recently speaking about the bill, West Bengal CM Mamata Banerjee had said the situation had significantly changed since the incentives were introduced by the erstwhile Left Front government. "...various works are being done on AI technology. Many new ideas and approaches have been added to the industry. Therefore, a new policy is being brought with the opinions of all concerned," Banerjee said.

She had said the current government is suffering because of the debt burden and 'unsustainable policies' imposed by the previous government.

The opposition has, however, criticized the state government, claiming the decision will likely move industry further away from the state. Amit Malviya, National in-charge of BJP's Information & Technology department called the Chief Minister 'a disaster for industries and employment generation in West Bengal', adding that chances of industries heading to WB have 'diminished' further.

Mamata Banerjee is a disaster for industries and employment generation in West Bengal.After the introduction of the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill, the chances of industries heading to Bengal have pic.twitter.com/mCFGZKbwAd
Amit Malviya (@amitmalviya) April 29, 2025

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A JM Financial note has projected the impact as percentage of market capitalisation for Nuvoco at 2.5%, Birla Corp at 1.8% and for Dalmia Bharat, it sees a hit of 0.6%. Another note by Incred sees Star Cement at potential risk.

(With inputs from PTI)