Tata Steel Gets Rs 1,903-Crore Demand For Mineral-Dispatch 'Shortfall'

Based on the revised assessment of the shortfall, the dispatch of minerals has fallen short for the fourth year in terms of Mine Development and Production Agreement., according to an exchange filing on Friday.

This allegedly violates rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security. The revision in assessment is based on declaration of average sale price notified by the Indian Bureau of Mines, as per the filing.

"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 Rs 19,02,72,53,760/- including sale value of shortfall quantity and appropriation of performance security," the filing stated.

However, the company's management disagrees with the allegations and "believes that the State's demands lack justification and substantive basis. Accordingly, the Company will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forum(s)", the filing added.