Odisha to Reap Rs 1 Lakh Crore Windfall from SC Mining Verdict

16 Aug 2024 , 02:13 PM

Odisha is poised to recover more than Rs 1 lakh crore in unpaid dues, as several Indian states anticipate large financial benefits from the Supreme Court’s recent order, which allows for the retrospective collection of taxes on mineral-bearing land beginning April 1, 2005, according to ToI.

Including Odisha’s dues, cumulative arrears for mineral-rich states since 2005 are projected to exceed the industry estimate of Rs 1.5 lakh crore. This amount incorporates the financial consequences of both public sector undertakings (estimated at Rs 70,000 crore) and private sectors. Odisha will get these overdue dues in installments over a 12-year period beginning April 2026. According to official sources, the state will also collect an estimated Rs 12,000 crore in annual taxes under the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act of 2004.

Odisha passed the ORISED Act in February 2005, however it was overturned by the Odisha High Court later that year. However, the Supreme Court’s subsequent decision overruled the High Court’s ruling. This statute allows Odisha to charge up to 20% of the annual value of mineral-bearing land. Tata Steel reported in an exchange statement on July 31 that it will owe Odisha Rs 17,300 crore in mineral tax as a result of the Supreme Court’s verdict.

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