TNI Bureau: The Odisha Government has issued two demand notices amounting to a staggering ₹1,255.38 crore to ESL Steel Limited, a subsidiary of mining giant Vedanta, for allegedly failing to meet mandatory production and dispatch targets at two iron ore mines in the state.
According to official sources, the notices, dated January 16 and 17, 2026, were issued by the Office of the Deputy Director of Mines, Koira Circle, and pertain to the BICO and Feegrade iron ore mines. The state mining authorities have accused the company of violating provisions of the Minerals Concession Rules, which mandate minimum levels of ore production and dispatch as a condition of mine operation.
The demand notices seek hefty financial penalties for what the government describes as a significant shortfall in meeting prescribed targets. Officials argue that non-compliance undermines efficient resource utilisation and results in revenue losses to the state exchequer.
Responding to the development, Vedanta stated that it is currently examining the notices in detail. The company has indicated that it will explore all available legal options, including approaching appropriate forums to seek a stay on the demands and the quashing of the notices.
The move signals a tougher regulatory stance by the Odisha government on mining compliance, particularly at a time when scrutiny over natural resource management and corporate accountability is intensifying. The outcome of the legal challenge is expected to have wider implications for mining operations and enforcement of concession norms in the state.
