JSW Cement Ltd has secured a significant legal victory after the Hon'ble High Court of Orissa allowed its writ petition seeking reimbursement of State Goods and Services Tax (SGST) incentives. The court set aside a retrospective amendment that had excluded cement units from these benefits.

The judgment was pronounced on October 16, 2026, in Writ Petition No. 36871 of 2020. The company had challenged an amendment dated August 18, 2020, which retrospectively excluded cement manufacturing and grinding units from availing SGST reimbursement with effect from July 1, 2017, under the Industrial Policy Resolution, 2015 (IPR 2015).

Court directives and legal grounds

The High Court held that the company should be treated as having obtained deemed approval for its application dated August 16, 2017, for Priority Sector status under the IPR 2015. The court ruled that the company's claims for SGST reimbursement had accrued and crystallized prior to the disputed amendment.

The bench declared the retrospective exclusion arbitrary and unconstitutional, citing violations of the doctrines of promissory estoppel and legitimate expectation. Consequently, the court directed that the company’s claim for SGST reimbursement, along with applicable interest, be determined and released within four weeks.

Key developments in the litigation

The following table summarizes the critical aspects of the High Court's ruling:

Regulatory compliance and disclosure

This development was disclosed pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed BSE Limited and National Stock Exchange of India Limited about the material litigation update. No settlements or changes in status regarding key management personnel were reported in connection with this specific proceeding.

JSW Cement has commissioned an additional 1.00 MTPA cement grinding unit at its Nagaur Integrated Plant in Rajasthan, increasing the plant's total grinding capacity to 3.50 MTPA. This expansion brings the company's overall installed grinding capacity to 25.10 MTPA.

North India expansion strategy

The commissioning strengthens JSW Cement's regional footprint in North India, specifically targeting demand across Rajasthan, Haryana, Punjab, and the National Capital Region (NCR). The Nagaur Integrated Plant commenced operations in March 2026 with a 3.30 MTPA clinkerisation unit and a 2.50 MTPA grinding unit. The addition of the new 1.00 MTPA unit enhances the facility's ability to serve these key markets.

The expansion has been funded through a strategic mix of equity and long-term debt. Nilesh Narwekar, CEO of JSW Cement, stated that the unit was commissioned within the expected timeline, highlighting the company's project execution capabilities.

Operational upgrades and sustainability

During the quarter ended September 30, 2026, JSW Cement also commissioned two critical sustainability infrastructure projects at the Nagaur plant:

• Alternate Fuel Handling System: Designed to reduce reliance on traditional fuels.
• Waste Heat Recovery System (WHRS): Expected to substantially reduce production costs by capturing energy from exhaust gases.

These additions align with JSW Cement's positioning as a green cement producer with the lowest carbon dioxide emission intensity among peer manufacturers in India and globally.

Capacity overview

The following table summarises the updated capacity metrics following the commissioning:

The total clinker capacity of 9.74 MTPA includes contributions from the joint venture, JSW Cement FZC, located in the UAE. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

What the Numbers Show

The commissioning represents a 40% increase in grinding capacity for the specific Nagaur Integrated Plant (from 2.50 MTPA to 3.50 MTPA), while contributing a modest 4% increase to JSW Cement's total national grinding capacity (from 24.10 MTPA to 25.10 MTPA). This suggests a targeted regional capacity boost rather than a broad national expansion, focusing on optimizing the logistics and output of the existing integrated asset in Rajasthan.