Tata Steel says ₹2,411 crore demand from Odisha authorities over Sukinda mine shortfall lacks justification

Tata Steel considers the ₹2,411 crore demand from the authorities in Odisha over a shortfall in the dispatch of Chromite ore from the Chromite Block in Sukinda to be unjustified, and it has grounds to challenge the demand both on legal and merit grounds.

“The company believes that the state’s demands lack justification/substantive basis, and that it has good grounds to challenge the said demand, both on law and merits. Accordingly, the company will pursue suitable legal remedies before the appropriate judicial and/or quasi-judicial forum(s),” it said in an exchange filing.

The steelmaker also provided a precedent for challenging a similar demand of ₹1,902 crore raised by the state by filing a writ petition before the Odisha High Court. “By order dated August 14, 2025, the Hon’ble Court was pleased to grant an interim stay, restraining the Government authorities from taking any coercive steps pursuant to the impugned demand. The said interim order was further extended by the Hon’ble Court on September 2, 2025, whereby the interim protection has been continued till the next date of hearing,” it added.

Tata Steel received a demand letter from the Office of the Deputy Director of Mines in Jajpur, which was issued after an alleged contravention of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. The shortfall in sale value—and consequent appropriation of performance security—in the dispatch of Chrome Ore was for the fifth year in terms of Mine Development and Production Agreement (i.e., July 23, 2024, through July 22, 2025).

On Friday, India’s benchmark indices closed on a positive note, supported by gains in metal stocks. A weakened dollar, stable base metal prices, and the RBI’s positive domestic outlook, driven by rising demand during the festive season, fuelled the rally. Tata Steel emerged as a top performer in today’s trade, as it ended the trading session 3.45% higher, with its shares closing at ₹173.29.

Shares of steel companies have recently been in focus due to a sustained rally in their prices. Market analysts attribute the uptrend in metal stocks to strong demand prospects, firm global commodity prices, and robust domestic infrastructure spending. Additionally, supportive government policies and optimism surrounding China’s efforts to curb steel production are further boosting sentiment in the sector.