Bhubaneswar: The Odisha government has issued demand notices to the tune of Rs 1,255.38 crore to ESL Steel Limited (ESL), a subsidiary of Vedanta Limited, over alleged shortfall in production and dispatch targets from its mining operations in the state.
The notices were issued by Deputy Director of Mines, Koira Circle, and the alleged shortfall pertains to the fourth operational year of ESL’s BICO and Feegrade mining leases. These operate under the Mine Development and Production Agreement (MDPA) dated November 15, 2021.
“ESL is in the process of evaluating the Demand Notices and related computation and believes that the same are not sustainable on merits. ESL proposes to pursue appropriate legal remedies and seek stay over the Demand Notices and appropriate reliefs, including quashing of the impugned demands,” according to a regulatory filing by Vedanta on January 18.
The alleged non-compliance relates to the Minimum Production and Dispatch Targets (MDPA Targets) as stipulated under Sub-Rule 1 of Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
It involves iron ore mining leases in the Koira region of Odisha’s mineral-rich Keonjhar district, sources said.
