Tata Steel Challenges ₹2,411 Crore Chrome Ore Demand in Orissa High Court

Tata Steel Ltd is facing a significant regulatory challenge in Odisha, where the Deputy Director of Mines, Jajpur, has issued a demand letter for ₹2,411 crore. The claim pertains to an alleged shortfall in chrome ore dispatch from Tata Steel’s Sukinda Chromite Block for the fifth year of operations, spanning July 23, 2024 to July 22, 2025.

The demand includes both the asserted sale value of the shortfall and the appropriation of performance security, as per Rule 12A of the Minerals Concession Rules, 2016. Tata Steel has responded by filing a writ petition before the Orissa High Court, challenging the validity and calculation of the demand.

This is not the first such dispute for Tata Steel in Odisha, where similar demands have previously been contested. The company maintains that it has complied with its obligations under the Mine Development and Production Agreement.

Major Takeaways:

• Demand Amount: ₹2,411 crore
• Issuing Authority: Deputy Director of Mines, Jajpur
• Mine in Question: Sukinda Chromite Block
• Legal Action: Writ petition filed in Orissa High Court
• Regulatory Basis: Rule 12A, Minerals Concession Rules, 2016
• Company Position: Disputes demand; claims compliance with mining agreement

The outcome of this legal challenge could have broader implications for mining compliance and regulatory enforcement in India.

Source: Odisha Bytes, Economic Times