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West Bengal government's decision to retrospectively revoke several grants under various incentive schemes, have raised concerns among cement majors.
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. Nuvoco Vistas Corporation, which is a leading cement player in East India, saw its shares drop, while those of Star Cement were trading in the red with marginal losses.
The state’s recent legislation cancels all outstanding and accrued benets under the earlier scheme that was in place between 1993 and 2013. This is the first time any state has reversed an incentive policy retrospectively
"The Company is examining the Revocation Act and considering all legal options including challenging the legal validity and retrospective applicability of the Revocation Act," Dalmia Bharat said.
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. CM Mamata Banerjee said the situation had significantly changed since the incentives were introduced by the erstwhile Left Front government. Therefore, a new policy is being brought with the opinions of all concerned.
The West Bengal government’s surprise decision to revoke its industrial incentive scheme with retrospective effect has unsettled the cement sector, but the long-term impact on earnings is expected to be limited, according to HDFC Securities.
Many companies have already stopped accounting for incentives in their books unless the cash was actually received. Some firms had also partially written off the expected dues. Other companies had built in small expectations but were not reliant on them
