Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
The Government of Odisha has issued a demand notice of ₹1,902.72 crore to Tata Steel over an alleged shortfall in mineral dispatch from its Sukinda chromite block in Jajpur for the period ending July 22, 2024.
The notice follows a revised assessment by the Indian Bureau of Mines, which updated the average sale prices of chromite used in calculating dispatch obligations. According to the state’s mining department, the shortfall constitutes a violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. As a result, the state has initiated the appropriation of performance security deposited by Tata Steel.
The Sukinda block, one of India’s largest chromite reserves, plays a critical role in Tata Steel’s raw material supply chain. In a regulatory filing, Tata Steel acknowledged receipt of the notice but contested the assessment’s legitimacy. The company maintains that the claim arises solely from revised pricing metrics rather than an actual lapse in mineral dispatch.
Calling the demand “unjustified” Tata Steel stated its intention to challenge the order through appropriate legal channels.
The development highlights ongoing friction between mining companies and regulatory authorities amid shifting compliance standards and valuation methodologies in India’s mineral sector.
Also Read : JSW Steel Named Top Pick by Macquarie as India’s Steel Industry Gains Momentum Steel Authority of India Powers Iconic J&K Rail Bridges