The Odisha government has raised a demand of ₹1,255 crore against ESL Steel Limited, a subsidiary of Vedanta Limited, citing an alleged shortfall in minimum production and dispatch targets. ESL has received two demand notices from the Office of the Deputy Director of Mines, Koira Circle, under Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
The notices pertain to the fourth year of operations of ESL’s BICO and Feegrade iron ore mining leases, governed by the Mine Development and Production Agreement signed on November 15, 2021. The state authorities have claimed that the company failed to meet stipulated output obligations during the period.
ESL Steel stated that it is evaluating the notices and underlying calculations and believes the claims are not sustainable on their merits. The company plans to pursue appropriate legal remedies, including seeking a stay and quashing of the demands.
Meanwhile, shares of Vedanta Limited closed 0.78 per cent higher at ₹681.05 on Friday, indicating limited immediate market impact.
