Tata Steel, today, informed that it has received a demand notice of Rs 1,902 crore from the Deputy Director of Mines in Jajpur in connection with the alleged shortfall in the dispatch of minerals from its Sukinda Chromite Block in Odisha.
In a stock exchange filing today, the steel maker stated that the demand is based on a revised calculation of average sale prices provided by the Indian Bureau of Mines. The company further said that it will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forums.
On July 3, 2025, Tata Steel Limited (‘Company’) has received a Demand Letter issued by the Office of Deputy Director of Mines, Jajpur, in connection with revised assessment of shortfall in dispatch of minerals from the Company’s Sukinda Chromite Block, for the fourth year in terms of Mine Development and Production Agreement (i.e., July 23, 2023 through July 22, 2024) in alleged violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security. The revision in assessment is based on declaration of average sale price notified by the Indian Bureau of Mines,” Tata Steel informed in the regulatory filing.
According to the filing, the notice was issued by the mining authorities on July 3 under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. They have also moved to use the company’s performance security amount to recover the dues.
“The alleged shortfall in mineral dispatch by the company as per the aforementioned Mine Development and Production Agreement for Sukinda Chromite Block has resulted in an aggregate demand of Rs 19,02,72,53,760 including sale value of shortfall quantity and appropriation of performance security,” it said.
Disagreeing with the demand notice, Tata Steel said the claim has no justification or proper basis, and it plans to challenge the notice through legal channels.
“The Management believes that the State’s demands lack justification and substantive basis. Accordingly, the Company will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forum(s),” the Tata Group company said in the filing.
Located in Odisha’s Jajpur district, Sukinda is one of the largest chromite reserves in the country. The region plays a key role in Tata Steel’s raw material supply.
