**Why Tata Steel Has Received a ₹2,410 Crore Demand Notice in Odisha**
*By Dwaipayan Roy | Oct 05, 2025, 06:40 PM*
Tata Steel has been issued a demand notice of ₹2,410.89 crore by the Office of the Deputy Director of Mines, Jajpur, Odisha. The notice pertains to an alleged shortfall in chrome ore dispatch from its Sukinda Chromite Block for the fifth operational year, spanning from July 23, 2024, to July 22, 2025.
### The Allegation
Authorities claim that Tata Steel failed to meet its dispatch obligations as stipulated under the Mine Development and Production Agreement (MDPA). Based on this, the demand has been raised for the shortfall in chrome ore supply during the specified period.
### Legal Framework Behind the Demand
The demand notice has been issued under Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. It includes charges accounting for both the sale value of the shortfall quantity and the appropriation of performance security deposited by the company.
### Tata Steel’s Response
Tata Steel has strongly refuted the allegations. The company stated that the demand lacks substantive justification and asserts that it has firm legal and factual grounds to contest the notice.
### Previous Similar Case
This is not the first time Tata Steel has faced such a demand. A similar notice amounting to approximately ₹1,902.73 crore was raised for the fourth operational year. Tata Steel challenged that demand before the Orissa High Court in the case WP(C) No. 22431 of 2025.
In that case, the court granted an interim stay on August 14, restraining state authorities from taking any coercive action against the company. This interim protection was further extended on September 2 and remains in effect until the next hearing.
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Tata Steel continues to engage legally to resolve this issue emerging from its mining operations in Odisha. The outcome of these proceedings will be closely watched by industry stakeholders.
https://www.newsbytesapp.com/news/business/tata-steel-issued-2-410cr-demand-notice-for-chrome-ore-shortfall/story
