New Delhi/Bhubaneswar: 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.
Taking Odisha’s dues into account, the total arrears for mineral-rich states since 2005 are expected to exceed the industry estimate of Rs 1.5 lakh crore, TOI reported.
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 Orissa Rural Infrastructure and Socio-Economic Development (ORISED) Act, 2004, the report said quoting government sources.
Odisha enacted the ORISED Act in February 2005, but it was struck down by the Orissa High Court later that same year. However, the Supreme Court’s recent verdict overturned the High Court’s decision. This law permits Odisha to levy up to 20% of the annual value of mineral-bearing land. Tata Steel, in a July 31 exchange filing, disclosed that it would owe Rs 17,300 crore in mineral tax to Odisha under the Supreme Court’s ruling, the report added.
