Tata Steel to contest penalty on its Sukinda chromite mines in Odisha

A man walks past the Tata Steel stall at the India Steel 2025 Conference in Mumbai, India, April 25, 2025.
| Photo Credit:
FRANCIS MASCARENHAS

Tata Steel has decided to contest the penalty of over ₹1,902 crore levied on it by the Odisha government.

The management believes that the state’s demand lacks justification and substantive basis. Accordingly, the company will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forum, said the company.

On July 3, Tata Steel received a Demand Letter from Deputy Director of Mines, Jajpur, for shortfall in dispatch of minerals from the company’s Sukinda Chromite Block, for the fourth year in terms of Mine Development and Production Agreement.

The letter alleged that the company was in violation of the Minerals Concession Rules and consequent appropriation of performance security.

The revision in assessment was based on declaration of average sale price notified by the Indian Bureau of Mines.

The alleged shortfall in mineral dispatch from Sukinda Chromite Block has resulted in an aggregate demand of ₹1,902 crore including sale value of shortfall quantity and appropriation of performance security, it said.

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Published on July 5, 2025