Mumbai: The Odisha government has raised a demand of Rs 1,255.38 crore from Vedanta Limited’s subsidiary, ESL Steel Limited, over an alleged shortfall in fulfilling its minimum production target from the mines leased to it in the state, according to the company’s disclosure to the stock exchanges.
In a regulatory filing on Saturday, Vedanta disclosed that ESL Steel received two demand notices on January 17, 2026, from the office of the Deputy Director of Mines, Koira Circle. The notices, dated January 16, 2026, relate to an alleged shortfall in fulfilling the Minimum Production and Dispatch Targets (MDPA Targets) for the fourth year of operation of two mining leases—BICO and Feegrade Mine.
As per the Demand Notices, an aggregate amount of Rs 12,55,37,61,591 has been demanded towards the alleged shortfall in production and dispatch for the relevant period.
The filing says that “ESL is in the process of evaluating the Demand Notices and related computation and believes that the same are not sustainable on merits. ESL proposes to pursue appropriate legal remedies and seek a stay over the Demand Notices and appropriate reliefs, including quashing of the impugned demands.”
The production and dispatch targets from the two mining leases have been fixed in accordance with an agreement signed with the mining department of the Odisha government. The demand notice has been issued as the company has not allegedly met the requirement under Sub-Rule 1 of Rule 12 (A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) concession Rules, 2016 for the fourth year of operation of the two mining leases (BICO & Feegrade Mine) under the Mine Development & Production Agreement dated November 15, 2021.
The disclosure has been made by the Company to the Bombay Stock Exchange and National Stock Exchange in compliance with the provisions of Regulation 30 read with Schedule III of SEBI Listing Regulations.
(IANS)
