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Tata Steel Share Price in Focus on ₹1,902 Crore Demand Over Sukinda Dispatch Shortfall

Written by: Team Angel OneUpdated on: 7 Jul 2025, 2:49 pm IST
Tata Steel share price in focus on ₹1,902.7 crore demand for alleged shortfall in mineral dispatch from Sukinda Chromite Block during 2023-24, plans legal response.
Tata Steel Share Price in Focus on ₹1,902 Crore Demand Over Sukinda Dispatch Shortfall
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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.

Legal Basis of the Demand

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.

Company’s Stand on the Issue

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!

Disclosure Made to Stock Exchanges

Tata Steel made the disclosure under Regulations 30 and 51 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. 

  • Demand notice date: July 3, 2025
  • Block concerned: Sukinda Chromite Block, Odisha
  • Assessment period: Year 4 of the mining agreement (2023–\-2024)
  • Total demand: ₹1,902,72,53,760

Tata Steel Share Price Performance 

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.

Conclusion

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. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 7, 2025, 9:19 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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