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Odisha Mines Authority Demands ₹1,903 Crore From Tata Steel Over Chromite Dispatch Shortfall

The company disputes the Rule 12A demand as unjustified, intending to challenge it in judicial forums

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Overview

  • The Deputy Director of Mines in Jajpur issued the ₹1,902.72 crore demand on July 3 for an alleged shortfall in mineral dispatch during the fourth year of the Sukinda block MDPA.
  • Odisha authorities based the claim on a revised assessment under Rule 12A of the Minerals Concession Rules and the Indian Bureau of Mines’ average sale price, seizing performance security.
  • Tata Steel received the notice on July 4 and rejected the assessment, calling the calculation without substantive basis.
  • The firm plans to pursue legal remedies before appropriate judicial and quasi-judicial bodies to contest the demand.
  • The Sukinda Chromite Block, one of India’s largest chromite reserves, is a vital raw-material source for Tata Steel’s operations.