Centre Seeks Urgent SC Hearing on States' Mineral Tax Power Amid Fears of Nation-Wide Price Chaos
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The Union government has urged the Supreme Court to expedite its consideration of a curative petition challenging the court's landmark July 2024 judgment, which granted states the power to levy additional taxes on minerals and mineral-bearing lands. Solicitor General Tushar Mehta warned that the ruling, which was upheld by an 8-1 majority in review, could lead to national chaos in mineral pricing and severely impact India's competitiveness in the global market if allowed to stand without clarification. Mehta expressed concern that the verdict, which allowed states to decide their own royalties, could trigger a situation where minerals are priced differently across state boundaries, affecting India's ability to match international prices. He emphasized that the Centre's curative petition, filed after the dismissal of its review, is crucial to preventing potential economic implications. Chief Justice of India Surya Kant acknowledged the Centre's concerns and assured that he would examine the matter carefully. The Supreme Court's ruling in July 2024 overturned a long-standing interpretation, dating back to the 1989 India Cements case, and granted states the power to levy additional taxes or surcharges on mineral extraction. The verdict was hailed as a major fiscal victory for mineral-rich states, but it has deeply unsettled mining companies facing retrospective taxation. Industry observers estimate that the financial impact of the ruling could be between ₹1.5-2 lakh crore, with public sector undertakings alone facing a burden of roughly ₹70,000 crore. The Centre has moved the curative petition in September 2025, seeking urgent consideration of the matter before other related appeals are heard by smaller benches. The Supreme Court's decision is expected to have significant implications for the mining sector and the nation's economy.
