Tata Steel gets Rs 1,902 crore demand notice over alleged mineral dispatch shortfall

Tata Steel received a demand notice from the Deputy Director of Mines, Jajpur, Odisha, seeking Rs 1,902.72 crore over an alleged shortfall in mineral dispatch from its Sukinda Chromite Block during the fourth year of its mining agreement, the company said in an exchange filing.

The demand, issued on July 3, stems from a revised assessment based on the average sale price declared by the Indian Bureau of Mines. Authorities have invoked Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and have moved to appropriate the company’s performance security.

The shortfall reportedly occurred during the period from July 23, 2023, to July 22, 2024, under the Mine Development and Production Agreement (MDPA) signed for the Sukinda block.


Tata Steel has contested the claim, stating that the demand lacks “justification and substantive basis,” and said it will explore legal remedies before the appropriate forums.