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Tata Steel wins extended interim protection in mining dispute

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Construction 26 Nov 2025 02:21 PM IST Reuters

The Orissa High Court has extended interim protection to Tata Steel in a high-value dispute over alleged shortfalls in chrome-ore dispatch from its Sukinda Chromite Block. The court’s order bars coercive action against the company and preserves its performance security until the matter is heard again on December 3, 2025.

The case stems from demand notices issued by the Office of the Deputy Director of Mines, Jajpur, asserting that Tata Steel failed to meet mine-dispatch obligations under its Mine Development and Production Agreement. Authorities earlier sought to appropriate performance security over an alleged shortfall amounting to about ₹1,902.7 crore; a subsequent notice raised an additional claim of roughly ₹2,410.9 crore for the following year.

Tata Steel has challenged the demands through writ petitions, arguing the notices lack substantive basis. The High Court first granted interim relief in August and has repeatedly extended the stay while the legal issues are adjudicated. The dispute, which has been grouped with related cases before the court, highlights broader regulatory scrutiny of mine-contract compliance and could influence future enforcement actions in the mining sector depending on the final judgment.