Why Tata Steel has received ₹2,410cr demand notice in Odisha
What's the story
Tata Steel has been issued a demand notice of ₹2,410.89 crore by the Office of the Deputy Director of Mines, Jajpur. The demand pertains to an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth operational year (July 23, 2024-July 22, 2025). The authorities claim that Tata Steel failed to fulfill its dispatch obligations under the Mine Development and Production Agreement (MDPA).
Legal battle
Demand issued under specific mineral concession rules
The demand was issued under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. It includes both the sale value of the shortfall quantity and the appropriation of performance security. Tata Steel has refuted these claims, saying that they lack substantive justification and that it has strong grounds to contest them on both legal and factual merits.
Past case
Similar demand raised for 4th year
Tata Steel also revealed that a similar demand of around ₹1,902.73 crore was raised for the fourth year, which it had already challenged before the Orissa High Court. In that case (WP(C) No. 22431 of 2025), the court had granted an interim stay on August 14, restraining state authorities from taking any coercive action. The interim protection was further extended on September 2, and is still in effect till next hearing.