Odisha government is likely to seek validation from the Supreme Court for its 2004 Act allowing the imposition of taxes on mines and mineral-bearing areas.
In 2004, the Odisha government passed the ORISED Act to impose taxes on mines and mineral-bearing land. In 2005, the high court invalidated the Act, prompting the government to appeal to the Supreme Court.
Arpit Pattnaik
The Odisha government is planning to appeal to the Supreme Court to resolve a case concerning the Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, which would enable the state to impose taxes on mineral-bearing areas. A government official stated that the Supreme Court's decision on the ORISED Act, which had been invalidated by the high court, is pending, and once resolved, the government can proceed with its implementation and levy taxes on mineral-bearing land. The government is currently evaluating legal options and seeking the advice of the law department before taking the matter to the Supreme Court.
During the demand discussion for the approval of the annual budget of the steel and mines department, Odisha’s Steel and Mines Minister Bibhuti Bhusan Jena informed the Assembly of the government's intention to act in accordance with the Supreme Court order while prioritizing the state’s interests.
The ORISED Act was enacted by the BJD-BJP coalition government in 2004 to impose taxes on mines and mineral-bearing land, and the legislation's implementing rules were formulated a year later.
However, Nalco, a central public sector undertaking (PSU), and other companies contested the law in the Orissa High Court. On December 5, 2005, the high court overturned the Act, stating that levying taxes on mineral-bearing land was beyond the state's authority. In 2006, the state government appealed to the Supreme Court against the high court's ruling.
On August 14, 2026, the Supreme Court ordered mining companies to pay states over the next 12 years, commencing from April 1, 2026, representing a significant windfall for mineral-bearing states such as Odisha, Chhattisgarh, Jharkhand, and Karnataka.
While the Odisha government has not estimated the amount it would receive from mining companies, including some central PSUs, officials have suggested that it may be approximately Rs 50,000 crore.
