October 4, 2025: Tata Steel Limited has received a demand letter from the Office of Deputy Director of Mines, Jajpur, alleging a shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth year of operations.
According to the notice, the alleged shortfall — for the period July 23, 2024 to July 22, 2025 — has led to a demand of ₹2,410.89 crore, which includes the sale value of the shortfall quantity and the appropriation of performance security under the Mine Development and Production Agreement (MDPA).
⚖️ Company’s Response
Tata Steel has strongly disputed the demand, stating that the State’s claim “lacks justification and substantive basis.”
The company plans to challenge the order through appropriate legal channels, citing strong grounds on both legal and factual fronts.
🏛️ Previous Year’s Similar Dispute
This is not the first time such a demand has been raised. Earlier, for the fourth year, the Odisha government had raised a ₹1,902.72 crore demand, which Tata Steel challenged in the Orissa High Court (Case No. WP(C) 22431 of 2025).
On August 14, 2025, the Hon’ble Court granted an interim stay, restraining the government from taking any coercive action. The stay was extended on September 2, 2025, and remains in effect.
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