How Will the Supreme Court's Ruling on Mining Royalties Impact Mineral-Rich States and the Economy?
The Supreme Court's decision to grant mineral-rich states the authority to collect past dues on royalties from mining companies, starting from April 1, 2005, marks a significant moment in the ongoing tug-of-war between state rights and federal oversight in India's resource management. By allowing these payments to be spread over 12 years, the Court has provided a balanced solution, enabling states to recover much-needed funds without placing an undue burden on the mining companies that fuel a substantial portion of the economy. However, the Court's prohibition against imposing penalties on these payments underscores a cautious approach, acknowledging the need to support both the states and the mining sector. This ruling effectively nullifies the states' long-standing demand for royalties dating back to 1989, a demand the Central government argued could severely impact the public sector, with potential losses amounting to ₹70,000 crore. The implications of this judgment...