A proposed law in Karnataka could triple the tax burden on miners operating pre-auction-era iron ore mines, potentially squeezing their margins and triggering steel price hikes in response, experts said.
The Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, introduced in the state legislature on Monday, aims to impose two new taxes: one on mineral-bearing land and another on mineral rights for mining leases.
The bill has drawn sharp reactions from industry observers, as major players brace for its financial impact.
State-owned NMDC Ltd, along with private mining giants Vedanta Ltd and Sandur Manganese and Iron Ores Ltd, are the largest operators of pre-auction-era mines in Karnataka and will bear the brunt of the proposed tax.
Together, these companies account for a significant portion of Karnataka's iron ore production, which makes up roughly 15% of India's annual output of 280 million tonnes, according to BigMint, a market intelligence firm.
This story is from the December 19, 2024 edition of Mint Hyderabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 19, 2024 edition of Mint Hyderabad.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Fuel efficiency norms could accelerate clean mobility
Tighter carbon emission standards should push automakers to sell greener vehicles overall
At long last, the UK is shooting for the moon on clean energy
An ambitious plan revives hope but it will be a race against time
Rupee's managed float: Should RBI shift gear?
To Mint Street's credit, India resolved a macro trilemma in its own special way. Recalibrate it for a more market-priced rupee if the expected trade gains outweigh price-stability risks
Can we use today's geopolitical chaos to uplift India's economy?
Successful economies have geopolitics to thank, but India may be letting its opportunity slip away
FREELANCERS CAN AVOID HIDDEN FEES, MAXIMIZE EARNING
Being aware of payout options and financial solutions helps freelancers with smarter choices
WHAT THE MARKET TAUGHT INVESTORS IN 2024
In multiple pockets of the market this year, new trend chasers learnt some very old lessons
What you must know about rental agreements, registration process
According to the Registration Act, 1908, a rental agreement for less than 12 months need not be registered
China says US is 'playing with fire' after latest aid for Taiwan
The Chinese government protested on Sunday the latest American announcements of military sales and assistance to Taiwan, warning the United States that it is \"playing with fire\".
India, Sweden to work on green tech
India and Sweden can deepen their collaboration in innovation and green technology with a focus on addressing global climate challenges through sustainable industrial practices and renewable energy solutions, Swedish officials said.
IOC probes bribery allegation of US cos
State-owned Indian Oil Corporation (IOC) has begun a probe into allegations of a US speciality chemicals firm bribing its officials 15 years ago to obtain contracts to supply catalysts, according to a company's regulatory filing.
