Tata Steel Ltd on Saturday said it has received a demand letter amounting to ₹2,410.89 crore from the Office of the Deputy Director of Mines, Jajpur, over an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth year of operations, spanning July 23, 2024, to July 22, 2025.
The authorities allege that the company failed to meet its dispatch obligations under the Mine Development and Production Agreement (MDPA).
The demand is issued under Rule 12A of the Minerals Concession Rules, 2016. It includes both the sale value of the shortfall quantity and the appropriation of performance security.
Tata Steel said that the demand lacks substantive justification and that it possesses strong grounds to contest it on both legal and factual merits.
The company intends to pursue appropriate legal remedies before the relevant judicial or quasi-judicial forums.
It added that a similar demand of ₹1,902.73 crore had been raised for the fourth year, which it had already challenged before the Orissa High Court. In that case, the court granted an interim stay on August 14, 2025, restraining state authorities from taking coercive action. The interim protection was further extended on September 2, 2025, and remains in effect until the next hearing.
The authorities allege that the company failed to meet its dispatch obligations under the Mine Development and Production Agreement (MDPA).
The demand is issued under Rule 12A of the Minerals Concession Rules, 2016. It includes both the sale value of the shortfall quantity and the appropriation of performance security.
Tata Steel said that the demand lacks substantive justification and that it possesses strong grounds to contest it on both legal and factual merits.
The company intends to pursue appropriate legal remedies before the relevant judicial or quasi-judicial forums.
It added that a similar demand of ₹1,902.73 crore had been raised for the fourth year, which it had already challenged before the Orissa High Court. In that case, the court granted an interim stay on August 14, 2025, restraining state authorities from taking coercive action. The interim protection was further extended on September 2, 2025, and remains in effect until the next hearing.
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