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Tata Steel Faces ₹2,411 Crore Demand in Odisha Over Sukinda Mine Dispute

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Construction 06 Oct 2025 11:36 AM IST Economic Times

Tata Steel is facing a ₹2,411 crore demand from Odisha authorities over alleged shortfall in dispatch obligations from its Sukinda chromite mine under the Mine Development and Production Agreement (MDPA).

Officials claim the company violated Rule 12A of the Minerals Concession Rules, 2016, which includes the asserted sale value and appropriation of performance security. Tata Steel, however, has disputed the claim, calling it unjustified and without legal basis, and plans to challenge it before the appropriate judicial forums.

This is the second major financial claim by the state, following an earlier ₹1,902 crore demand already stayed by the Orissa High Court in August 2025. The matter remains under judicial review.

Tata Steel stated it remains confident in its compliance and operational integrity. The ongoing dispute highlights growing regulatory scrutiny over large mining operations and the complexities of India’s evolving mineral policy framework.