Shares of Tata Steel came under pressure as the company faces a fresh financial demand of Rs 24.11 billion from Odisha authorities. The claim arises from alleged shortfalls in dispatch obligations at the company’s Sukinda mine under the Mine Development and Production Agreement (MDPA). Authorities have included both the asserted sale value of the shortfall and the appropriation of performance security under Rule 12A of the Minerals Concession Rules, 2016.

Tata Steel has disputed the demand, stating that it has substantial grounds to challenge it legally. In a statement, the company said, “The company believes that the State's demands lack justification/substantive basis, and that it has good grounds to challenge the said demand, both on law and merits. Accordingly, the Company will pursue suitable legal remedies before the appropriate judicial and/or quasi-judicial forum(s).”

The company’s stock closed 3.40 per cent lower at Rs 173.20 on BSE, with a market capitalisation of Rs 2.16 trillion and a turnover of Rs 500.93 million.

This follows a previous demand of Rs 19.02 billion for the fourth year, which Tata Steel is already contesting in the Orissa High Court. The court granted an interim stay on August 14, 2025, later extended on September 2, halting any coercive action.

Observers note that the case underscores the strategic importance of the Sukinda mine and highlights challenges faced by mining companies in navigating evolving regulatory frameworks in India’s resource sector. Tata Steel maintains confidence in its compliance track record while the matter awaits further judicial proceedings.