On the royalty issue, the central government had said that this would lead to a huge financial burden. The Center has demanded a reconsideration of this decision and said that there are many mistakes in it. The central government, along with Madhya Pradesh, had filed a petition against this decision. The Center says that this matter is related to the fundamental rights of the citizens of the country. Also, this is an issue of public interest and if it is not heard in open court, it will be a big injustice. At the same time, now (on Thursday evening 7 November 2024) the Supreme Court has given two months to the government to take a final decision regarding the full effect of royalty compounding.

After the news, Vedanta's stock rose -  the stock has increased by 1.5 percent. Shares of other companies are also on the rise.

According to Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957, income for any mineral extracted or used is paid to the government in the form of royalty. In addition, this section gives the Central Government the right to increase or decrease the rate of royalty payable once every three years through a notification. In the year 2016, the government reformed the entire system of calculating royalty on minerals and giving concessions. What next? The court has refrained from commenting on this issue for the time being and has directed the government to take a final decision on this issue by the stipulated period of two months, i.e. January 10, 2025. The Minerals Development and Regulation Act (MMDR) does not limit the tax collection powers of the states. States have full right to collect tax on minerals and mine land. In fact, 86 petitions were filed in the Supreme Court by different state governments and mining companies. The court had to decide whether the state government should have the right to levy royalty on minerals and tax on mines or not. In the 8-day hearing in the Supreme Court, the Center had said that the states should not have this right. The court had reserved the decision on March 14. After this, it was said that the royalty given on minerals is not a tax, the states have the right to impose tax.