States’ mineral windfall to easily surpass 1.5 lakh crore, Odisha’s share over 1 lakh crore – Times of India

NEW DELHI: Odisha stands to recover more than Rs 1 lakh crore in pending dues as several states across India are set for major financial gains following Supreme Court’s recent ruling that permits the retrospective collection of taxes on mineral-bearing land from April 1, 2005.
Taking Odisha’s dues into account, the total arrears for the mineral-rich states since 2005 are likely to be much higher than the industry estimate of about Rs 1.5 lakh crore.This estimate includes the financial implications for both public sector undertakings (Rs 70,000 crore) and private industries.
Starting in April 2026, Odisha will receive the pending dues in instalments over 12 years. Additionally, the state will collect an annual tax of around Rs 12,000 crore under the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004, according to govt sources.

Odisha introduced ORISED Act in Feb 2005, but it was struck down by Orissa high court later that year. SC’s recent verdict overturned the HC decision. The law allows Odisha to levy up to 20% of the annual value of mineral-bearing land. Tata Steel, in a July 31 exchange filing, disclosed it would owe Rs 17,300 crore in mineral tax to Odisha under SC’s ruling.
Andhra Pradesh, facing a financial crunch, also expects benefits from the top court’s ruling. The state anticipates recovering between Rs 5,000 crore and Rs 6,000 crore in dues, with instalments starting in April 2026. A senior official from the mines and geology department said: “We are still making the assessment.”
Telangana is likely to gain about Rs 300 crore in additional revenue through cess and royalty on mineral-bearing land. State govt plans to expand the list of taxable minerals, focusing on limestone, granite, and barytes.
Mineral-rich states like Madhya Pradesh, Chhattisgarh, Jharkhand, Tamil Nadu, Karnataka and Rajasthan are still determining the extent of the financial windfall. Karnataka CM Siddaramaiah’s economic adviser Basavaraj Rayareddy expected the estimates to reach several thousand crores of rupees.
Jharkhand will recalibrate its tax claims from April 2005 onwards, after the ruling invalidated previous demands stretching back to 1993. “We have to re-calculate our demand,” said Jharkhand Mineral Area Development Authority managing director Ravi Raj Sharma. The new calculations, minus 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’s too early to suggest a figure. “The state will benefit from the order. The amount of royalty and tax will be calculated in the coming days.”
(inputs from Bhubaneswar, Hyderabad, Ranchi, Bengaluru, Bhopal)