Odisha Needs Validation Of ORISED Act To Levy Mineral Tax As Per SC Ruling: Minister

Bhubaneswar: The Odisha government on Thursday informed the Assembly that validation of ORISED Act is required for the implementation of the Supreme Court’s order of July 25 to levy tax on mines and mineral-bearing areas.

Answering a question by BJD MLA Ganeswar Behera in the House, Steel and Mines Minister Bibhuti Bhushan Behera said that validation of Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004 is needed to implement the Apex court’s order to collect tax on minerals.

Although Supreme Court in its order allowed the states to levy taxes on mineral-bearing areas, Odisha’s case pertaining to ORISED Act which was struck down by the High Court is pending before the Apex Court. The Supreme Court has to dispose of the case after which Odisha can implement it and levy taxes on mineral-bearing land.

The Minister said enactment of a similar new law may encounter legal hurdles. Only after the validation of ORISED Act, Odisha will be able to levy taxes on mineral-bearing areas.

Notably, Odisha is poised to recover over Rs one lakh crore in pending dues as several states expect major financial benefits following the Supreme Court’s recent decision that allows for the retrospective collection of taxes on mineral-bearing land from April 1, 2005, sources said.

This figure includes financial impacts for both public sector undertakings, estimated at Rs 70,000 crore, and private industries. Starting in April 2026, Odisha will receive these pending dues in installments spread over 12 years.

This apart, the state will collect an annual tax of approximately Rs 12,000 crore under the ORISED Act, 2004 once it is validated, the sources added.

In reply to another question, the Minister informed the House that disciplinary action against 32 mines officials is under consideration. Some past officials of the Mines department are also among the 32 officials who will face the action, he added.