Supreme Court Upholds Centre's Mining Royalty Calculation Methodology
The Supreme Court upheld the Centre's methodology for calculating mining royalty, dismissing a challenge from Kirloskar Ferrous Industries Ltd. The court ruled that the existing formula, which includes royalty and contributions to the District Mineral Foundation and National Mineral Exploration Trust in the average sale price, is constitutional and aimed at preventing tax evasion. The ruling is expected to maintain stability in the mining sector and protect state revenues, which could be reduced by 15-17% if the methodology were altered. The court emphasized that the measure is a legitimate economic policy and does not violate constitutional provisions. The judgment noted that over 585 mineral blocks have been auctioned under the current framework, and any changes could significantly impact auction premiums and state revenues.
Published 1 day ago • 14 Jul 2026, 08:51 AM IST