Tata Steel Secures Extended Interim Relief in Sukinda Chromite Block Dispute

Market Update: Tata Steel’s Legal Battle Over Sukinda Block

Tata Steel Ltd has announced that the Orissa High Court has extended interim protection in ongoing litigations concerning its Sukinda Chromite Block. The disputes stem from substantial demand notices issued by Odisha’s mining authorities, alleging shortfalls in mineral dispatch under the Mine Development and Production Agreement.

Key Highlights:

• Court Action: Interim protection extended until January 29, 2026.
• Dispute Value: Demand notices total ₹4,313 crore (₹1,902 crore + ₹2,410 crore).
• Core Issue: Alleged shortfalls in mineral dispatch and compliance under mining rules.
• Company Position: Tata Steel has filed writ petitions challenging the demands, citing contractual and regulatory grounds.
• Market Impact: Shares of Tata Steel have shown volatility, reflecting investor caution amid litigation risks.

This extension provides Tata Steel temporary relief, allowing it to continue operations without immediate financial enforcement. However, the upcoming hearing will be crucial in determining the company’s long-term exposure to these claims.

Sources: PSU Connect, CNBC-TV18, India Infoline, InvestyWise