Tata Steel Wins Litigation Over Chromite Block Demands

Tata Steel Limited has received a favorable judgment from the Hon'ble High Court of Orissa at Cuttack concerning two writ petitions related to demands raised by the Office of Deputy Director of Mines, Jajpur, for its Sukinda Chromite Block. The first demand, dated July 3, 2025, was for ₹1902,72,53,760/-, concerning a revised assessment of the shortfall in mineral dispatch for the 4th year of the Mine Development and Production Agreement (MDPA). The second demand, dated October 3, 2025, was for ₹2410,89,66,881/-, related to the assessment of shortfall in dispatch for the 5th year of the MDPA. The company had filed writ petitions challenging these demands, and the High Court had initially restrained coercive steps. On April 20, 2026, the High Court pronounced its judgment, disposing of both petitions. The court concluded that Rule 12A(1) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, and its subsequent amendments are not constitutionally invalid. However, it also held that the penal consequences for non-adherence of minimum dispatch obligations, introduced via sub-rules (1A), (1B), and (1C) with effect from July 1, 2021, cannot be applied retrospectively. The court further stated that if the Mining Plan provides for annual production below the minimum obligation, the Mining Plan shall prevail over the MDPA. Consequently, the impugned demand notices issued by the State Government, to the extent they are contrary to these conclusions, stand quashed. Tata Steel believes that both Demand Letter 1 and Demand Letter 2 have been effectively quashed as per the High Court's judgment.