New Delhi:
The Odisha government has issued a massive demand notice of ₹1,255.38 crore to ESL Steel Ltd, a subsidiary of the Vedanta Group, alleging violations of mining norms. The notice has sparked a fresh debate over compliance with mining regulations and the accountability of corporate operators in the sector.
According to disclosures made by Vedanta to stock exchanges, ESL Steel received the demand notices on January 17, 2026. The action relates to the company’s alleged failure to meet the prescribed Minimum Despatch and Production Achievement (MDPA) targets in mines allotted to it by the state.
Mines Involved in the Dispute
The company stated that two separate demand notices were issued by the office of the Deputy Director of Mines, Koira Circle. Both notices, dated January 16, 2026, pertain to the Bico and Figrade mining leases. The Odisha government has alleged that during the fourth year of operations, ESL Steel failed to achieve the mandatory minimum production and mining targets at these two mines.
Amount Demanded and Company’s Response
The total demand raised for the alleged shortfall in production and dispatch stands at ₹12,55,37,61,591 (₹1,255.38 crore). Responding to the development, Vedanta clarified that ESL Steel is currently reviewing the notices and the calculations used by the authorities.
The company has asserted that the demand notices are not tenable on merit and has termed the claims as incorrect. Vedanta further stated that ESL Steel will pursue appropriate legal remedies, including seeking a stay on the demand and cancellation of the disputed amount.
The issue has once again brought the spotlight on the enforcement of mining regulations in Odisha, one of India’s key mineral-rich states, and the ongoing tussle between state authorities and large mining companies over production obligations and compliance.