Dalmia Bharat Limited's wholly-owned subsidiary, Dalmia Cement (Bharat) Limited, has received significant tax relief as the Sales Tax Officer in Tamil Nadu dropped GST demands totaling ₹266.31 crore for the assessment years 2019-20 and 2022-23.

Details of the Tax Relief

The tax relief comes in the form of dropped demands, which were initially proposed due to differences in taxable turnover and input tax credit. The details of the dropped demands are as follows:

Background of the Case

The case stemmed from adjudication proceedings related to differences in taxable turnover and input tax credit for the assessment years 2019-20 and 2022-23.

Outcome and Impact

The adjudication proceedings have concluded favorably for Dalmia Cement (Bharat) Limited. The concerned Sales Tax Officer in Tamil Nadu has dropped the proposed demands of both tax and penalties. As a result, there will be no financial impact on the subsidiary.

Company's Disclosure

Dalmia Bharat Limited, the parent company, disclosed this development in compliance with regulatory requirements. The resolution of this tax dispute without any financial implications removes a significant contingent liability from the company's books.

Dalmia Bharat Limited , a prominent player in the Indian cement industry, has announced strategic investments in solar power special purpose vehicles (SPVs) to bolster its renewable energy portfolio. The company's subsidiaries are set to acquire stakes in three SPVs for a total consideration of ₹7.8 crore, aiming to enhance their solar power sourcing capabilities.

Key Acquisition Details

Strategic Rationale

The acquisitions align with Dalmia Bharat's commitment to sustainability and renewable energy adoption. The company aims to:

1. Enhance its renewable power supply sources
2. Progress towards its RE 100 commitment by 2030
3. Achieve carbon negativity by 2040

Transaction Details

• The investments will be made through cash consideration
• Acquisitions are subject to customary conditions precedent
• Expected completion timeline: Within 3 months

Impact on Operations

These strategic investments will enable Dalmia Bharat to source solar power as a captive consumer, potentially reducing its reliance on conventional energy sources and lowering its carbon footprint. The move is in line with the company's long-term sustainability goals and may contribute to operational cost efficiencies in the future.

Market Implications

While the immediate financial impact of these acquisitions may be limited given the investment size, the strategic importance lies in Dalmia Bharat's proactive approach to sustainable energy sourcing. This move could potentially enhance the company's environmental, social, and governance (ESG) profile, which is increasingly important for investors and stakeholders in the construction materials sector.

As the cement industry faces growing pressure to reduce its environmental impact, Dalmia Bharat's investment in renewable energy infrastructure demonstrates its commitment to sustainable practices and may set a precedent for other players in the sector.