Tata Steel Hit With ₹2,411 Crore Demand from Odisha Authorities for Sukinda Mine Shortfall

Tata Steel has received a demand notice of ₹2,410.9 crore (₹2410,89,66,881) from the Office of the Deputy Director of Mines, Jajpur, Odisha. The notice was issued on October 3, 2025. Reports indicate that it relates to the company’s Sukinda Chromite Block for the fifth year of operations from July 23, 2024, to July 22, 2025.

Alleged shortfall

The authorities said there was a shortfall in chrome ore dispatch from the mine. The demand has been raised under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. It covers the sale value of the shortfall quantity and appropriation of performance security.

Company’s statement

In its filing, Tata Steel said the demand is not justified. The company added that it has grounds to contest the claim. It plans to approach judicial or quasi-judicial forums to challenge the notice.

Earlier demand

Odisha authorities had earlier raised a demand of ₹1,902.73 crore for the fourth year of operations. Tata Steel challenged it in the Odisha High Court. On August 14, 2025, the court granted an interim stay, stopping the authorities from taking coercive action. The stay was extended on September 2, 2025, and remains in place.

As per the Bloomberg reports, the European Union is preparing to raise steel import tariffs to 50% and lower quota volumes, which could have an effect on Tata Steel’s European operations.

Tata Steel Share Price Performance 

As of October 06, 2025, at 09:27 AM, Tata Steel share price was trading at ₹171.79, a 0.82% decline from the previous closing price.

Read More: Maruti Suzuki Staff to Work on Sundays Amid Record Festive Demand!

Conclusion

The fresh demand of ₹2,411 crore adds to Tata Steel’s ongoing disputes with Odisha authorities over the Sukinda mine. The matter is expected to continue through legal proceedings, alongside the earlier case that is still before the High Court.

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