The Odisha government has demanded Rs 1,255.38 crore from Vedanta Limited’s subsidiary, ESL Steel Limited, over an alleged shortfall in meeting minimum production targets from its state-leased mines, the company disclosed to stock exchanges.
In a regulatory filing on Saturday, Vedanta stated that ESL Steel received two demand notices on January 17, 2026, from the office of the Deputy Director of Mines, Koira Circle. The notices, dated January 16, 2026, pertain to an alleged shortfall in fulfilling the Minimum Production and Dispatch Targets (MDPA Targets) for the fourth year of operation of two mining leases—BICO and Feegrade Mine.
The total amount demanded under the notices is Rs 1,255.38 crore for the alleged shortfall in production and dispatch during the specified period.
Vedanta said in the filing that “ESL is evaluating the Demand Notices and related computations and believes they are not sustainable on merits. ESL intends to pursue legal remedies, seek a stay on the notices, and obtain appropriate relief, including quashing of the demands.”
The production and dispatch targets were set under an agreement with the Odisha Mining Department. The notices allege that ESL Steel did not meet requirements under Sub-Rule 1 of Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, for the fourth year of operations of the BICO and Feegrade leases under the Mine Development & Production Agreement dated November 15, 2021.
The company has disclosed the matter to the Bombay Stock Exchange and National Stock Exchange in compliance with SEBI Listing Regulations.