Tata Steel Ltd received a demand letter on July 3, 2025, from the Office of the Deputy Director of Mines, Jajpur, Odisha, as per the filing. The letter pertains to a revised assessment of the mineral dispatch shortfall from the company’s Sukinda Chromite Block. The demand is for the 4th year of the Mine Development and Production Agreement (MDPA) period, from July 23, 2023, to July 22, 2024.
Authorities have raised a total demand of ₹1,902.72 crore. This includes the calculated sale value of the alleged shortfall in mineral dispatch and the proposed appropriation of Tata Steel’s performance security. The notice cites an alleged breach of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
The revised assessment is based on the average sale price of chromite as notified by the Indian Bureau of Mines. According to the demand, Tata Steel did not meet the agreed-upon dispatch quantities under the MDPA for the Sukinda block, which triggered the current action by the state mining department.
In an exchange filing dated July 4, 2025, Tata Steel stated that it considers the demand to be without justification or substantive basis. The company has announced its intention to seek appropriate legal recourse through relevant judicial or quasi-judicial forums. No further details were shared about the nature of the expected legal proceedings.
Read More: Tata Steel Nederland Submits Environmental Report for Green Steel Shift!
Tata Steel made the disclosure under Regulations 30 and 51 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.
As of 09:16 AM on July 7, 2025, Tata Steel share price was at ₹161.77, a 0.76% decline. The stock is up 22.28% over the past 6 months and down 5.33% over the past year.
The ₹1,902.7 crore demand marks a regulatory action linked to mining agreement compliance. The matter is expected to proceed through legal channels, and further updates may depend on the outcome of the company’s appeal.
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.
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Published on: Jul 7, 2025, 9:19 AM IST
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