The Supreme Court has issued a notice to Tata Steel on an appeal by Odisha against an April decision of the high court that quashed the state's demand notices of ₹4,313 crore against the company for alleged shortfalls in mineral dispatch. The dispute arose after Tata Steel Mining, which acquired the Sukinda Chromite Block through the auction process in 2020, was issued multiple demand notices by the Odisha government for failing to meet prescribed dispatch targets under the Mine Development and Production Agreement. The state initially issued a demand of ₹1,563.75 crore for the fourth lease year, later revising it upward to ₹1,902.72 crore. A further demand of ₹2,410.89 crore was raised for the fifth lease year, with the total notices seeking recovery of nearly ₹4,313 crore from Tata Steel.
The Revisional Authority, Ministry of Coal, has admitted Tata Steel's application challenging a ₹1,755.10 crore mining demand and directed respondents not to take any coercive steps against the company during the pendency of the case. As per ET Now, the company received a copy of the order on August 24, with the authority admitting the revision application for consideration and directing the respondents not to take any coercive steps against Tata Steel pursuant to the impugned demand notices or letters during the pendency of the revision application. The demand notice, dated March 30, 2026, from the District Mining Office, Ramgarh, Jharkhand, sought the aggregate amount of ₹1,755,10,54,029, alleging excess extraction of approximately 1,62,40,399 metric tonnes of mineral coal from the company's West Bokaro Colliery beyond permissible limits during FY2000-07. According to Tata Steel's filing, the DMO alleged that the company had extracted around 1.62 crore metric tonnes of coal beyond the permissible limit during the seven-year period.
The company had filed Revision Application No 101 of 2026 before the Revisional Authority, Ministry of Coal, Government of India, on April 24, challenging the demand notice. The authority heard the application on August 20, 2026, and Tata Steel received a copy of the order on August 24. As reported by ET Now, the revision application challenged the demand notice issued by the DMO, with the State of Jharkhand through its Secretary, Department of Mines and Geology, and the District Mining Officer, Ramgarh, named as respondents. The company had challenged the demand, saying it lacks justification and substantive basis, and noted that the demand notice was issued on grounds similar to those considered by the Supreme Court in the Common Cause vs Union of India case. The demand was raised on grounds similar to those considered by the Supreme Court in the Common Cause vs Union of India case.
Shares of Tata Steel were trading lower on Tuesday following the announcement of the coal demand case relief, with the stock falling to ₹183.79 as of 11:15 am, down 1.35 percent from the previous close of ₹186.95. According to CNBC TV18, the stock had hit day's lows following the announcement. The stock had closed marginally lower at ₹186.95 on the BSE in the previous session, down 0.19 percent. The decline came as Indian equities ended lower after erasing early gains, with Sensex falling 172 points and Nifty 33 points, pressured by rising bond yields, Iran sanctions uncertainty and weak Asian markets. The stock has gained just over 1 percent so far in 2026 and about 15 percent in the last 12 months.
Tata Steel had reported an 11.58 percent year-on-year increase in consolidated net profit to ₹2,318.35 crore for the quarter ended June 30, compared with ₹2,077.68 crore in the year-ago period. According to exchange filings, net profit stood at ₹2,925.74 crore in the March quarter of FY26. The company's total revenue from operations rose 14.32 percent year-on-year to ₹60,794.29 crore in the June quarter, from ₹53,178.12 crore in the same period a year earlier. Revenue stood at ₹63,270.13 crore in the fourth quarter of FY26.
