Karnataka Introduces Bill to Tax Mines and Mining Land

20 Dec 2024 CW Team

In response to a recent Supreme Court ruling allowing state governments to impose taxes on minerals, the Karnataka government presented the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill 2024 in the Assembly. This move is expected to generate over Rs 47 billion in additional revenue. Under the proposed legislation, tax will be payable by mining leaseholders at the time of dispatching minerals, with different tax rates applied based on the mine’s category. A uniform tax rate is suggested for mining leases within the same category, taking into account the current additional payments made by lessees. The Bill, which was cleared by the state cabinet earlier this month, comes after the Supreme Court’s August 2024 order permitting states to collect taxes on mineral-bearing land and mineral rights with retrospective effect from April 1, 2005. The ruling also waived interest and penalties on past dues before July 25, 2024. Leaseholders will be allowed to pay the taxes in installments over 12 years, starting from April 1, 2026. The Bill categorises mining leases into five groups based on the method of grant and additional payment conditions. These categories include leases granted through non-auction routes before 2015, those granted to public sector units before and after 2015, and those auctioned after 2015. The Bill also empowers the state government to set tax rates for mineral-bearing land and mineral rights, with retrospective implementation from 2005 and 2015, respectively. It includes provisions for mining companies to appeal tax determinations. According to the law, taxes will be paid by the leaseholder at the time of mineral dispatch, with a 12% simple interest charged on overdue payments. Of the total estimated revenue, Rs 42.07 billion is expected from mineral rights tax, and Rs 5.05 billion will be raised from taxes on mineral-bearing land. (Indian Express)

Infrastructure Transport

07 Apr 2026

Tunnelling Begins for Thane, Borivali twin tunnel project

Tunnelling work has commenced for the 11.84-km Thane–Borivali Twin Tunnel, set to be India’s longest urban road tunnel, marking a key milestone in Mumbai’s infrastructure development.As per a post shared by Mumbai Metropolitan Region Development Authority on social media platform X, the tunnel boring machine (TBM) ‘Nayak’—the country’s largest single-shield hard rock TBM for an urban tunnel—was launched by Devendra Fadnavis on Tuesday. The event was attended by Eknath Shinde and Sunetra Pawar, among other dignitaries. A second TBM, ‘Arjuna’, is expected to be launched so..

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..