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Tata Steel Limited (TATASTEEL) has publicly disclosed receiving a significant demand letter from regulatory authorities concerning alleged shortfalls in mineral dispatch, an issue the company vehemently contests and plans to challenge legally.
The company informed stock exchanges via a disclosure dated October 4, 2025, regarding a Demand Letter received the previous day, October 3, 2025. The letter was issued by the Office of Deputy Director of Mines, Jajpur.
The demand relates to an assessment of a shortfall in the dispatch of Chrome Ore from Tata Steel’s Sukinda Chromite Block.
This alleged shortfall pertains to the fifth year of the Mine Development and Production Agreement, specifically covering the period from July 23, 2024, through July 22, 2025.
The regulatory authority alleges that this shortfall violates Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
The aggregate financial demand made by the State totals ₹2410,89,66,881/- (approximately 24.11 billion Indian Rupees).
This substantial figure is calculated based on the sale value of the quantity allegedly short-dispatched and also includes the appropriation (seizure) of the Company’s performance security.
Tata Steel is not accepting the demand, asserting that the State’s claims “lack justification/substantive basis”.
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