Orissa High Court Grants Tata Steel Interim Relief in Chrome Ore Dispute
Company shielded temporarily from ₹2,410.90 crore demand over alleged dispatch discrepancies
Bhubaneswar: Tata Steel has secured temporary judicial protection from the Orissa High Court after mining authorities issued a substantial demand related to alleged discrepancies in chrome ore dispatches from the company’s Sukinda Chromite Block in Jajpur district.
The dispute arose when the Office of the Deputy Director of Mines, Jajpur, served Tata Steel a demand notice citing an alleged violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. Authorities claimed a shortfall in chrome ore dispatches from the 406-hectare Sukinda Chromite Block, one of India’s most significant chromite-producing mines.
Challenging the demand—amounting to a massive ₹2,410.90 crore—Tata Steel filed a writ petition in the Orissa High Court seeking to quash the notice. The company argued that the demand lacked merit and required judicial scrutiny.
After reviewing the matter, the High Court granted interim relief to the steel major, restraining mining authorities from taking any coercive action until the next hearing. While the order provides short-term relief, the final outcome will depend on the court’s detailed examination of the case.
Tata Steel’s Sukinda Chromite Block has an annual production capacity of 2.4 million tonnes (ROM) of chrome ore, 0.5 million tonnes of pyroxenite ore and 0.65 million tonnes of chrome concentrate, making it a crucial asset in the company’s raw material portfolio.
The ongoing legal tussle highlights the broader challenges in regulatory interpretation, compliance and valuation norms within India’s mining sector. As the case proceeds, industry observers are watching closely, as the verdict could influence similar disputes involving mineral dispatch assessments and compliance frameworks across the country.
