**Why Tata Steel Has Received a ₹2,410 Crore Demand Notice in Odisha**
*By Dwaipayan Roy | Oct 05, 2025, 06:40 PM*
Tata Steel has been served with a hefty demand notice amounting to ₹2,410.89 crore by the Office of the Deputy Director of Mines, Jajpur, Odisha. This notice pertains to an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth operational year, spanning from July 23, 2024, to July 22, 2025.
### The Allegation
Authorities claim that Tata Steel failed to meet its dispatch obligations as outlined in the Mine Development and Production Agreement (MDPA). The demand has been issued under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. It includes both the sale value of the shortfall quantity as well as the appropriation of the company’s performance security.
### Tata Steel’s Response
Tata Steel has strongly refuted the claims, stating that the demand lacks substantive justification. The company asserts that it has solid legal and factual grounds to contest the notice and intends to challenge it.
### Ongoing Legal Battle
This is not the first time such a demand has been raised. A similar notice for the fourth operational year, amounting to approximately ₹1,902.73 crore, was issued earlier. Tata Steel challenged that notice in the Orissa High Court under writ petition WP(C) No. 22431 of 2025.
The court granted an interim stay on August 14, preventing state authorities from taking any coercive action against Tata Steel. This interim protection was further extended on September 2 and remains in effect until the next hearing.
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Tata Steel’s ongoing legal tussle with Odisha authorities highlights the complexities companies face in fulfilling ore dispatch obligations under strict regulatory frameworks. The case will be closely watched for its implications on mining operations and contractual enforcement in the state.
https://www.newsbytesapp.com/news/business/tata-steel-issued-2-410cr-demand-notice-for-chrome-ore-shortfall/story