The Odisha government has raised financial claims against ESL Steel, a subsidiary of Vedanta Limited, citing an alleged failure to meet minimum production and dispatch requirements at certain mining operations.
The notices, amounting to ₹1,255 crore, relate to iron ore leases operated under a mine development agreement. The company has said it is reviewing the claims and considering legal options.
ESL Steel Limited has received two demand notices from the Office of the Deputy Director of Mines, Koira Circle, Government of Odisha. The notices total ₹1,255.37 crore and relate to an alleged shortfall in achieving prescribed minimum production and dispatch levels.
The claims have been issued under Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
According to the authorities, the shortfall pertains to the fourth year of operations at ESL’s BICO and Feegrade mining leases, governed by a Mine Development and Production Agreement signed on 15 November 2021.
ESL Steel has stated that it is examining the demand notices and the calculations supporting the claims.
The company has indicated that it believes the demands are not sustainable on merit. It plans to explore appropriate legal remedies, including seeking a stay and potential quashing of the notices through relevant judicial or regulatory channels.
Vedanta Limited’s shares were trading at ₹680.00 as of 1:23 PM on 19 January 2026, reflecting a decline of 0.40% from the previous close of ₹682.70. The stock opened at ₹684.95 and moved between an intraday high of ₹688.00 and a low of ₹677.30 during the session.
Read More: Vedanta Shares Rise 6% to Record High; Why Is the Stock Rising Today?
The issuance of demand notices introduces a new regulatory development for Vedanta’s subsidiary in Odisha’s mining sector. Market participants are likely to monitor further disclosures from the company, including legal proceedings and any financial implications arising from the claims.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 19, 2026, 2:17 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
