Odisha is poised to recover over Rs 1 lakh crore in pending dues as several states across India anticipate significant financial benefits following the Supreme Court’s recent decision that allows for the retrospective collection of taxes on mineral-bearing land from April 1, 2005, ToI reported.
Taking Odisha’s dues into account, the total arrears for mineral-rich states since 2005 are expected to exceed the industry estimate of Rs 1.5 lakh crore. This figure includes financial impacts for both public sector undertakings, estimated at Rs 70,000 crore, and private industries. Starting in April 2026, Odisha will receive these pending dues in installments spread over 12 years. Additionally, the state will collect an annual tax of approximately Rs 12,000 crore under the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004, according to government sources.
Odisha enacted the ORISED Act in February 2005, but it was struck down by the Odisha High Court later that same year. However, the Supreme Court’s recent verdict overturned the High Court’s decision. This law permits Odisha to levy up to 20% of the annual value of mineral-bearing land. Tata Steel, in a July 31 exchange filing, disclosed that it would owe Rs 17,300 crore in mineral tax to Odisha under the Supreme Court’s ruling.
Andhra Pradesh, which is currently facing financial challenges, also expects to benefit from the Supreme Court’s decision. The state is anticipated to recover between Rs 5,000 crore and Rs 6,000 crore in dues, with installments beginning in April 2026. A senior official from the mines and geology department stated, “We are still making the assessment.”
Mining royalty case: Setback for mining operators as SC rules states can impose levies retrospectivelyTelangana is projected to gain approximately Rs 300 crore in additional revenue through cess and royalty on mineral-bearing land. The state government plans to expand the list of taxable minerals, focusing specifically on limestone, granite, and barytes.
Other mineral-rich states such as Madhya Pradesh, Chhattisgarh, Jharkhand, Tamil Nadu, Karnataka, and Rajasthan are still determining the extent of their financial gains. Karnataka Chief Minister Siddaramaiah’s economic adviser Basavaraj Rayareddy expects the estimates to reach several thousand crores of rupees.
Jharkhand will recalibrate its tax claims from April 2005 onwards, following the ruling that invalidated previous demands extending back to 1993. Ravi Raj Sharma, Managing Director of Jharkhand Mineral Area Development Authority, said, “We have to re-calculate our demand.” The new calculations, excluding interest and penalties, are expected to total less than the original Rs 1,000 crore sought.
According to Madhya Pradesh Mineral Resources Department Principal Secretary Sanjay Kumar Shukla, it is premature to suggest a figure. “The state will benefit from the order. The amount of royalty and tax will be calculated in the coming days.”
