Shares of major mining companies like Tata Steel, JSW Steel, NMDC, and Coal India fell sharply after the Supreme Court’s August 14 ruling. The Court confirmed that its July 25 decision, allowing state governments to tax mining activities retroactively from April 1, 2005, will apply but exclude transactions before this date.
Tax payments will be staggered over 12 years starting April 1, 2026, with interest and penalties waived for demands made by July 25, 2024.
Tata Steel’s stock fell 3.26% to ₹144.05, JSW Steel dropped 2% to ₹890.75, and Hindalco decreased 0.76% to ₹616.40. Coal India and NMDC saw declines of 3% and 5%, respectively.
The ruling overturns a 1989 judgment that previously gave the Centre exclusive power to impose mineral royalties. The Centre has opposed state demands for refunds, estimating a potential ₹70,000 crore impact. Chief Justice Chandrachud noted that Justice Nagarathna, who dissented, would not sign the ruling.
