The Supreme Court ruling allows states to tax mineral rights retroactively from April 1, 2005, imposing a heavy financial burden on mining companies
Mining companies, both private and public, could face liabilities of Rs 1-2 trillion. Public-sector miners alone might incur costs of Rs 70,000 crore
The court’s ruling includes provisions like no interest or penalties and allows staggered payments over 12 years, providing some relief to the affected parties
Retrospective taxation has stifled foreign investment in the past. The infamous 2012 Vodafone case led to significant backlash, eventually resulting in the law being scrapped
Mineral-rich states like Jharkhand, Odisha, Rajasthan, and Chhattisgarh stand to gain from this ruling, with Jharkhand already passing a Bill to impose a cess on minerals
The cascading effects could include higher electricity prices due to increased costs of coal. States must exercise discretion to mitigate the inflationary impact of this ruling