Mumbai/Bhbuaneswar – Tata Steel has been served a demand notice amounting to Rs1,902.72 crore by the Office of the Deputy Director of Mines in Jajpur, Odisha. The notice alleges a shortfall in the dispatch of minerals from the company’s Sukinda Chromite Block during the fourth year of its mining contract, covering the period from July 23, 2023, to July 22, 2024.
The notice, issued under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, is based on a reassessment that uses revised average sale prices as notified by the Indian Bureau of Mines. Alongside the financial demand, the Odisha mining authorities have also initiated steps to recover part of the alleged dues by invoking Tata Steel’s performance security deposited under its mining agreement.
In a statement filed with the stock exchanges, Tata Steel has strongly disagreed with the demand. The company stated that the claim lacks legal and factual basis and described the calculation methodology as unjustified. Tata Steel has confirmed its intention to pursue legal remedies against the demand and will approach the appropriate judicial or quasi-judicial forums for relief.
The Sukinda Chromite Block, located in Odisha’s Jajpur district, is one of India’s most important sources of chromite — a key raw material used in stainless steel production — and plays a vital role in Tata Steel’s operations. This dispute could potentially impact the company’s material supply chain if not resolved swiftly.
As the legal process unfolds, all eyes will be on the outcome of this high-stakes dispute, which reflects the growing scrutiny around mining operations and regulatory compliance in India’s mineral-rich states.
