Bhubaneswar: Tata Steel faces a financial challenge in Odisha after local authorities made a demand of Rs 2,411 crore.
The office of Deputy Director of Mines, Jajpur, has sent the demand letter to Tata Steel over an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth year of operations, spanning July 23, 2024, to July 22, 2025.
Officials have alleged that the company did not meet dispatch obligations at its Sukinda mine under the Mine Development and Production Agreement. Under Rule 12A of the Minerals Concession Rules, 2016, authorities have included both the shortfall’s asserted sale value and the appropriation of performance security, reported CNBC TV18.
Tata Steel, however, has questioned the legitimacy of the claim and said it has substantial reasons to dispute the sum.
“The company believes that the state’s demands lack justification/substantive basis, and that it has good grounds to challenge the said demand, both on law and merits. Accordingly, the Company will pursue suitable legal remedies before the appropriate judicial and/or quasi-judicial forum(s),” Tata Steel said.
The steelmaker pointed out that a demand of Rs 1,902.73 crore was raised by state authorities for the fourth year, which has been challenged before the Orissa High Court. The high court granted an interim stay in that case on August 14, restraining state authorities from taking coercive action.
The interim protection was extended on September 2, and will remain in effect until the next hearing.
