SC order on states’ right to tax minerals a double whammy. More levy will make mining unviable

The SC’s majority ruling upholding states’ right to levy royalty on minerals and tax mineral-bearing land is a shot in the arm for mineral-rich states. But a double whammy for mining companies that are already paying royalty to states as well as Centre. More levy will risk making mining unviable.

Govt won’t raise capex. Don’t expect private sector to invest without reforms

Government has indicated it won’t raise capex from current 3.4% of GDP. This is fair, given the increase over pre-pandemic levels. It wants the private sector to step up. This will only happen with reforms, such as easing land-use norms. States must also shoulder their share of reforms and expenditure.