Tata Steel to file curative petition on mining tax ruling in SC
COAL & MINING

Tata Steel to file curative petition on mining tax ruling in SC

Tata Steel plans to file a curative petition in the Supreme Court, challenging a July 25 ruling by the court's nine-judge Constitution Bench that affirmed states' authority to impose cess on mining and mineral-use activities. The steel giant, which operates captive mines in Jharkhand and Odisha, aims to seek relief from the implications of this judgment. Despite the ruling, Tata Steel CEO T V Narendran confirmed that no formal demand has been issued to the company.

The origin of the dispute dates back to the Odisha government’s Orissa Rural Infrastructure and Socio-Economic Development Act (ORISED) of 2004, which introduced a tax on mineral-bearing land. This legislation led to a Rs 1.29 billion demand from Odisha on Tata Steel's mining activities, a charge the company successfully contested in the Odisha High Court. However, Odisha escalated the matter to the Supreme Court, resulting in the recent ruling in favour of state levies on minerals, with collections permitted retroactively from April 1, 2005.

Tata Steel disclosed, during its Q2FY25 results, that although Odisha’s appeal is pending before a regular Supreme Court bench, the application and enforcement of the ORISED Act remain uncertain. The company is engaging with state officials to explore viable paths forward, as both the state and central governments acknowledge the importance of not undermining industrial stability. Narendran noted the industry’s changing landscape since ORISED's enactment, highlighting increased state revenue from mining royalties and the establishment of the District Mineral Foundation (DMF), a mining-funded non-profit supporting districts impacted by mining under the MMDR Amendment Act, 2015.

The company’s discussions with authorities reflect shared concerns about balancing state interests and industry health. Narendran remarked that excessive taxation on minerals, like coal, could escalate costs across sectors, notably in energy. Tata Steel had previously disclosed a contingent liability of Rs 173.47 billion for its Odisha mines as of June 30, 2024. However, the Q2FY25 notes clarified that no current legal obligation related to ORISED exists, and thus no financial provision has been recorded in its results.

(Business Standard)

Tata Steel plans to file a curative petition in the Supreme Court, challenging a July 25 ruling by the court's nine-judge Constitution Bench that affirmed states' authority to impose cess on mining and mineral-use activities. The steel giant, which operates captive mines in Jharkhand and Odisha, aims to seek relief from the implications of this judgment. Despite the ruling, Tata Steel CEO T V Narendran confirmed that no formal demand has been issued to the company. The origin of the dispute dates back to the Odisha government’s Orissa Rural Infrastructure and Socio-Economic Development Act (ORISED) of 2004, which introduced a tax on mineral-bearing land. This legislation led to a Rs 1.29 billion demand from Odisha on Tata Steel's mining activities, a charge the company successfully contested in the Odisha High Court. However, Odisha escalated the matter to the Supreme Court, resulting in the recent ruling in favour of state levies on minerals, with collections permitted retroactively from April 1, 2005. Tata Steel disclosed, during its Q2FY25 results, that although Odisha’s appeal is pending before a regular Supreme Court bench, the application and enforcement of the ORISED Act remain uncertain. The company is engaging with state officials to explore viable paths forward, as both the state and central governments acknowledge the importance of not undermining industrial stability. Narendran noted the industry’s changing landscape since ORISED's enactment, highlighting increased state revenue from mining royalties and the establishment of the District Mineral Foundation (DMF), a mining-funded non-profit supporting districts impacted by mining under the MMDR Amendment Act, 2015. The company’s discussions with authorities reflect shared concerns about balancing state interests and industry health. Narendran remarked that excessive taxation on minerals, like coal, could escalate costs across sectors, notably in energy. Tata Steel had previously disclosed a contingent liability of Rs 173.47 billion for its Odisha mines as of June 30, 2024. However, the Q2FY25 notes clarified that no current legal obligation related to ORISED exists, and thus no financial provision has been recorded in its results. (Business Standard)

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?