SC order on mineral royalty to states ignores macro impact, may drive up prices: Centre

On September 12, the Central government filed a review petition against the top court’s order that allowed states to collect royalty on extracted minerals and levy tax on mineral-bearing land

The Centre’s review petition, challenging a Supreme Court order that upheld the right of states to impose royalty on tax on mineral-bearing land, said the judgment "ignores" the macroeconomic impact of the minerals as a major source of the economy and this "ignorance of practical realities" is an error apparent on the face of the record, The Economic Times reported.

The petition also claimed that different state taxes would drive up the prices and increase India's dependence on exports, the report said, adding that several critical infrastructure sectors are dependent on minerals across the states.

On September 12, the central government filed a review petition against the top court’s order that allowed states to collect royalty on extracted minerals and levy tax on mineral-bearing land, The Times of India has reported.

Facing a huge financial burden following the judgment of a nine-judge constitutional bench, the Centre said the order has several errors and could have significant financial implications for public sector undertakings (PSUs) and industries, the report said.

The Centre and Madhya Pradesh, a co-petitioner, said the issue raised in the review petition pertained to "the fundamental rights of citizens of the country and raises larger issue of of public interest", the report said. It would be a "grave injustice" if the plea for an oral hearing of the review petition was not allowed.