Supreme Court Verdict Shakes Indian Mining Industry with Rs 2 Lakh Crore Royalty Arrears

The Supreme Court's recent verdict authorizing states to levy taxes on mineral rights and mineral-bearing land from April 1, 2005, has major financial implications for India's mining industry. The industry's arrears could exceed Rs 2 lakh crore. This verdict challenges the previous 1989 ruling and is expected to impact steel, power, and coal companies financially.

The Supreme Court's recent verdict on a mining royalty case will significantly impact India's mining industry, with financial implications potentially exceeding Rs 2 lakh crore, industry players said on Wednesday.

On Wednesday, the Supreme Court upheld states' power to levy taxes on mineral rights and mineral-bearing lands, allowing them to seek refunds of royalty from April 1, 2005, onwards.

This ruling is expected to have a considerable financial impact on mining, steel, power, and coal companies, according to a senior mines ministry official. The investment in these sectors will also be affected, the official noted.

(With inputs from agencies.)