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Tata Steel received a Rs 2,411 crore demand notice from authorities for 'alleged' chrome ore shortfall
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The authorities allege that the company did not fulfil its dispatch obligations under the MDPA
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Tata Steel said it will take all necessary steps to safeguard its legal and commercial interests in the matter
Tata Steel Ltd. announced on Saturday, Oct. 4, that it has received a demand notice of Rs. 2,410.89 crore from the Office of the Deputy Director of Mines, Jajpur. The notice is regarding an alleged shortfall in chrome ore dispatches from the company’s Sukinda Chromite Block for the fifth operational year, covering July 23, 2024, to July 22, 2025.
The demand was raised under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and includes the sale value of the shortfall and the forfeiture of performance security. The authorities allege that the company did not fulfil its dispatch obligations under the Mine Development and Production Agreement (MDPA).
In its exchange filing, Tata Steel stated that it believes the demand raised by the state authorities “lacks justification or substantive basis” and that it has strong grounds to contest the matter both in law and on its merits. Consequently, the company said it plans to pursue appropriate legal remedies before the relevant judicial or quasi-judicial forums.
It must be noted that the It is pertinent to note that Tata Steel has already challenged a similar demand raised by the State for the 4th year amounting to Rs 1902,72,53,760 by way of a writ petition filed before the Orissa High Court, registered as WP(C) No. 22431 of 2025.
The Court, by its order dated Aug. 14, 2025, granted an interim stay restraining the government authorities from taking coercive action. The interim protection was further extended on Sept. 2, 2025, and remains in effect until the next hearing.
Tata Steel said it will continue to take all necessary steps to safeguard its legal and commercial interests in the matter.
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