What is ESL Steel being accused of by the Odisha Mines Department?

ESL Steel is accused of allegedly falling short in meeting minimum production and dispatch targets for its mining leases.

How much money is ESL Steel being asked to pay?

ESL Steel has received demand notices totaling ₹12,55,37,61,591.

What action is ESL Steel planning regarding the demand notices?

ESL Steel is evaluating the notices and plans to pursue legal remedies, including seeking a stay and quashing of the demands.

Home / Business and Economy / ESL Steel Disputes $12.5 Billion Odisha Demand

ESL Steel Disputes $12.5 Billion Odisha Demand

18 Jan

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Summary

ESL Steel received two demand notices totaling over ₹12.5 billion.
Notices allege shortfall in production and dispatch targets.
ESL Steel believes claims are unsustainable and will pursue legal remedies.

ESL Steel Disputes $12.5 Billion Odisha Demand

ESL Steel Limited, a subsidiary of Vedanta Limited, is facing significant financial claims from the Government of Odisha. The company has received two demand notices aggregating ₹12,55,37,61,591 from the Office of the Deputy Director of Mines, Koira Circle. These notices allege a shortfall in meeting minimum production and dispatch targets as per the Mine Development and Production Agreement dated November 15, 2021.

The alleged shortfall specifically pertains to the fourth year of operation for ESL's BICO and Feegrade mining leases. The company is currently undertaking a thorough evaluation of the demand notices and the associated computations to ascertain their validity. ESL maintains a strong stance that the claims are not sustainable on their own merits.

ESL Steel Limited has indicated its firm intention to vigorously pursue all appropriate legal remedies available. This includes seeking a stay and the eventual quashing of these substantial demands. The company is prepared to challenge the notices through the legal system.