Tata Steel shares in focus on receiving ₹2,411 crore demand for chrome ore dispatch shortfall

Tata Steel shares will be in focus on Monday after it , received a demand letter worth ₹2,410.9 crore, on October 3, from the Office of the Deputy Director of Mines, Jajpur, Odisha, for the shortfall in the dispatch of chrome ore from its Sukinda Chromite Block.

The notice alleges a shortfall in chrome ore dispatch for the fifth year, from July 23, 2024, to July 22, 2025, in violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security, Tata Steel said in a regulatory filing dated Saturday.

“The alleged shortfall in mineral dispatch by the Company as per the aforementioned Mine Development and Production Agreement for Sukinda Chromite Block has resulted in an aggregate demand of ₹2410,89,66,881 based on the sale value of the shortfall quantity and appropriation of performance security,” the statement added.

Tata Steel said that it believes that the Odisha authority’s demands lack justification or a substantive basis, adding that it has good grounds to challenge the said demand, both on law and merits.

Furthermore, the steel producer plans to pursue suitable legal remedies before the appropriate judicial and/or quasi-judicial forums.

The filing added that the state raised a similar demand for ₹1,902.72 crore for the fourth operational year, which the company had challenged through a writ petition filed before the Odisha High Court.

“By order dated August 14, 2025, the Hon’ble Court was pleased to grant an interim stay, restraining the Government authorities from taking any coercive steps pursuant to the impugned demand. The said interim order was further extended by the Hon’ble Court on September 2, 2025, whereby the interim protection has been continued till the next date of hearing,” it stated.

According to the draft, the tariff rate would rise to 50% “to minimise the risk of trade diversion”.