Tata Steel Faces Rs 1,902 Crore Penalty from Odisha
Company to Challenge Revised Mineral Shortfall Claim
Tata Steel has received a penalty notice of Rs 1,902 crore. The Deputy Director of Mines, Jajpur, issued this notice. It is for an alleged shortfall in mineral dispatch from Tata Steel’s Sukinda Chromite Block in Odisha.
Company’s Response
On Friday, the company shared this update in a stock exchange filing. Tata Steel plans to take legal action against this notice.
Details of the Penalty
The notice was issued on July 3. It is about a revised assessment for the fourth year of operations. This falls under the Mine Development and Production Agreement (MDPA). The period in question is from July 23, 2023, to July 22, 2024.
Alleged Rule Violation
The notice claims a violation of Rule 12A. This rule is part of the Minerals Concession Rules, 2016. The penalty totals Rs 1,902.72 crore. It includes the sale value of the alleged shortfall and the use of performance security.
Company’s Position
Tata Steel said the assessment is based on the average sale price from the Indian Bureau of Mines. However, the company believes the state’s claims are not factual.
The management thinks the state’s demands are unjustified. They also lack a solid basis. The company will seek legal remedies in the right judicial forums.
Key Points to Remember
- Tata Steel got a Rs 1,902 crore penalty notice from Odisha.
- The notice is for an alleged mineral dispatch shortfall.
- The company will challenge this claim in court.
- The penalty is for the fourth year of operations under the MDPA.
- Tata Steel believes the state’s claims are not justified.
