Archive · 15 Jan 2026
NLC India Estimates ₹625 Crore Annual Impact from TN Land Tax
NLC India, a big company that mines lignite, says a new tax in Tamil Nadu will cost them ₹625 crore every year.
The tax is ₹250 for every ton of lignite they mine.
NLC India thinks they should be allowed to pass this cost to their customers.
The government agreed and said NLC India can add this cost to the price of lignite.
NLC India's revenue and profit have been growing, and their share price went up by 5.2% recently.
NLC India estimates the Tamil Nadu Mineral Bearing Land Tax Act, 2024 will cost ₹625 crore annually.
The tax levy is ₹250 per tonne of lignite mined, based on the 2025-26 production schedule.
NLC India argues it should recover the costs from customers, similar to other statutory charges.
The Central Electricity Regulatory Commission agreed, allowing cost recovery through the Energy Charge Rate (ECR).
NLC India's revenue and profit for the first half of 2025-26 showed growth, with a 5.2% increase in share price.
- Who
- NLC India Ltd and the Central Electricity Regulatory Commission
- What
- Estimated financial impact of the Tamil Nadu Mineral Bearing Land Tax Act, 2024
- When
- January 15, 2026 (judgment issued), April 4, 2025 (Act notified)
- Where
- Tamil Nadu, India
- Why
- To recover costs from customers due to the new tax levy
- Estimated Annual Impact
- ₹625 crore
- Tax Levy
- ₹250 per tonne of lignite
- Production Schedule
- 2025-26
- NLCIL Revenue (H1 2025-26)
- ₹5,060 crore
- Profit After Tax (H1 2025-26)
- ₹853 crore
- NLCIL Share Price (NSE, Jan 15, 2026)
- ₹260.40
- Share Price Increase
- 5.2% higher than previous close