Tata Steel Ltd has received a demand notice of ₹2,410.89 crore from the Office of the Deputy Director of Mines, Jajpur (Odisha), for an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block. The claim pertains to the fifth year of operations between July 23, 2024, and July 22, 2025.
The state authorities have raised this demand under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, citing non-compliance with the company’s dispatch obligations under the Mine Development and Production Agreement (MDPA).
The demand includes both the sale value of the shortfall quantity and appropriation of performance security.
Tata Steel rejects claims, calls demand unjustified
In response, Tata Steel has strongly refuted the demand, stating that it “lacks substantive justification” and that the company has “strong grounds to contest it on both legal and factual merits.”
The steelmaker confirmed its intention to pursue appropriate legal remedies before the relevant judicial or quasi-judicial forums to challenge the Odisha authorities’ claim.
Tata Steel also emphasized that the company has always operated in compliance with regulatory frameworks and maintains transparency in its mining operations.
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Previous ₹1,902 crore demand already under court stay
This is not the first time Tata Steel has faced such a demand from state authorities. The company revealed that a similar demand of ₹1,902.73 crore had been raised for the fourth year of operations at the same Sukinda Chromite Block.
Tata Steel had already challenged that demand before the Orissa High Court, under case number WP(C) No. 22431 of 2025.
The Orissa High Court granted an interim stay on August 14, 2025, preventing the state from taking any coercive action against Tata Steel. The interim protection was extended on September 2, 2025, and remains valid until the next hearing.
This earlier case, still pending, is likely to set a precedent for how the company handles the latest demand.
Tata Steel shares rise despite regulatory concerns
Interestingly, the regulatory development did not dampen investor sentiment. On Friday, October 3, Tata Steel shares closed 3.4% higher at ₹173.20, up ₹5.70 on the BSE.
The rally in share price reflects investor confidence in the company’s strong legal position and ability to navigate regulatory challenges.
Market observers noted that Tata Steel’s swift response and transparent communication helped contain any potential negative reaction.
Background of the Sukinda Chromite Block issue
The Sukinda Chromite Block, located in Jajpur district, is one of India’s most significant sources of chrome ore, a key raw material used in stainless steel production.
Tata Steel operates the mine under the Mine Development and Production Agreement (MDPA) framework, which mandates specific production and dispatch targets.
The Odisha government’s latest claim alleges that the company did not meet the agreed dispatch quantity for the fifth year, leading to the ₹2,411 crore demand.
However, Tata Steel insists that its production and dispatch figures are fully compliant and that the calculation methodology used by the authorities is flawed and unsubstantiated.
Company reiterates commitment to legal recourse
Tata Steel’s statement reaffirmed that the company will defend its position through appropriate legal channels. It believes the claim has no legal or factual basis and remains confident of a favourable resolution.
The company’s legal team is expected to file a challenge similar to the previous case, which is already under judicial consideration.
Investor outlook remains positive
Despite regulatory hurdles, analysts and investors remain optimistic about Tata Steel’s fundamentals, given its diversified operations, strong balance sheet, and proven legal track record in handling such disputes.
The stock’s positive momentum reflects market’s belief that the company’s core business remains unaffected by the latest notice.
The Odisha mining dispute will likely continue in the courts, but for now, Tata Steel’s assertive legal stance and steady share performance have reinforced investor confidence.
In summary, Tata Steel’s latest challenge involves a ₹2,411 crore demand from Odisha authorities over an alleged chrome ore shortfall from the Sukinda mine. The company has termed the demand unjustified and plans to contest it legally, just as it did with a previous ₹1,902 crore notice that is currently under court protection.
With shares closing higher and legal action underway, the steelmaker remains firm in defending its operations and reputation against what it calls an unsupported regulatory claim.
