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

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.