The Odisha government has requested Rs 1,255.38 crore from Vedanta Limited’s subsidiary, ESL Steel Limited, citing a shortfall in meeting minimum production targets from leased mines in the state. Vedanta revealed in a regulatory filing that ESL Steel was served two demand notices on January 17, 2026, by the Deputy Director of Mines, Koira Circle, for alleged production and dispatch target discrepancies at BICO and Feegrade Mine.
The demand notices amount to Rs 12,55,37,61,591 for the purported shortfall in production and dispatch during the specified period. ESL Steel is currently assessing the notices and associated calculations, expressing doubts about their validity. The company intends to explore legal options to challenge the demands and secure relief, including halting the notices.
Production and dispatch targets for the mining leases were established under an agreement with Odisha’s mining department. The demand arose due to ESL Steel’s alleged failure to meet requirements outlined in the Mine Development & Production Agreement for the fourth year of operation at BICO & Feegrade Mine. Vedanta disclosed this information to the Bombay Stock Exchange and National Stock Exchange in adherence to SEBI Listing Regulations.
