New Delhi, Jul 4 (PTI) Tata Steel on Friday said it has received a demand notice of Rs 1,902 crore from Deputy Director of Mines in Jajpur for alleged shortfall in dispatch of minerals from its Sukinda Chromite Block in Odisha.

In a filing, the steel maker said it will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forums.

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"The company has received a Demand Letter issued by the Office of Deputy Director of Mines, Jajpur, in connection with revised assessment of shortfall in dispatch of minerals from the company's Sukinda Chromite Block, for the fourth year in terms of Mine Development and Production Agreement (i.e., July 23, 2023 through July 22, 2024)," Tata Steel said.

The notice received on July 3 alleges violation of Rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security, the company said.

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"The alleged shortfall in mineral dispatch by the company as per the aforementioned Mine Development and Production Agreement for Sukinda Chromite Block has resulted in an aggregate demand of Rs 19,02,72,53,760 including sale value of shortfall quantity and appropriation of performance security," it said.

As per the notice, the revision in assessment is based on declaration of average sale price notified by the Indian Bureau of Mines.

The management believes that the "state's demands lack justification and substantive basis and the Company will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forum(s)," it said.

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