Odisha govt demands ₹1,255 cr from Vedanta's ESL Steel over alleged production shortfall

ESL Steel Limited (ESL), a subsidiary of Vedanta Limited, has received two demand notices aggregating ₹12,55,37,61,591 from the Office of the Deputy Director of Mines, Koira Circle, Government of Odisha.

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The notices relate to an alleged shortfall in meeting minimum production and dispatch targets under Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. The alleged shortfall pertains to the fourth year of operation of ESL’s BICO and Feegrade mining leases under the Mine Development and Production Agreement dated November 15, 2021.

ESL stated that it is evaluating the demand notices and the related computations and believes the claims are not sustainable on merits. The company intends to pursue appropriate legal remedies, including seeking a stay and quashing of the demands.

Shares of Vedanta Limited (VEDL) closed higher at ₹681.05, up ₹5.30 or 0.78%, in Friday’s trading session.