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On February 25, 2026, Neelachal Ispat Nigam Limited (NINL), a wholly owned subsidiary of Tata Steel Limited, received a Show Cause Notice from the Office of the Deputy Director of Mines, Koira Circle, Government of Odisha. The notice seeks to recover ₹587,86,25,047 from NINL for alleged shortfall towards additional charges on iron ore dispatch between February 2022 and March 2025.
| Date | 2 Mar 2026 |
| Time | 07:00:04 |
| Category | Acquisitions and alliances |
| ID | 8121U |
Ref: SEC/1987/2025-26
February 28, 2026
London Stock Exchange
London
Dear Sir, Madam,
Sub: Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
This has reference to the aforementioned subject.
In FY2023, Tata Steel Limited ('Company') through its erstwhile listed subsidiary - Tata Steel Long Products Limited ('TSLP') acquired controlling stake in Neelachal Ispat Nigam Limited ('NINL'). In FY2024, consequent to the amalgamation of TSLP into and with the Company, NINL became an indirect subsidiary of the Company. In FY2026, NINL became a wholly owned subsidiary of the Company.
On February 25, 2026, NINL received a Show Cause Notice ('SCN') from the Office of the Deputy Director of Mines, Koira Circle, Koira Steel & Mines Department, Government of Odisha ('Authority') seeking NINL to show cause as to why an amount of ₹587,86,25,047/- should not be recovered from NINL as shortfall towards additional charges on dispatch of Iron Ore between the period February 2022 and March 2025, calculated at 150% of royalty payable under Section 8A(8) of Mines and Minerals (Development and Regulation) Amendment Act, 2021 ('MMDR Act').
NINL believes that its Iron Ore Mine does not fall under the purview of Section 8A(8) of MMDR Act as alleged in the said SCN, and hence the SCN is erroneous. Accordingly, NINL believes that it may not be liable to pay the amount as stated in the SCN. NINL will suitably respond to the SCN and if needed, pursue legal remedies, as appropriate, before court of law.
The Management was studying the impact of SCN on the Company and NINL and hence, the disclosure is being made even date.
The details of the SCN, as required under the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 are provided in the Annexure enclosed herewith.
This disclosure is being made by the Company in compliance with Regulations 30 and 51 read with Part A, Para B of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
This is for your information and records.
Encl: Annexure
Annexure
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Particulars |
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Brief details of litigation viz. name(s) of the opposing party, court/ tribunal/ agency where litigation is filed, brief details of dispute/litigation. |
Neelachal Ispat Nigam Limited ('NINL') is a wholly owned subsidiary of Tata Steel Limited ('Company').
On February 25, 2026, NINL has received a Show Cause Notice ('SCN') from the Office of the Deputy Director of Mines, Koira Circle, Koira Steel & Mines Department, Government of Odisha ('Authority') seeking NINL to show cause as to why an amount of ₹587,86,25,047/- should not be recovered from NINL as shortfall towards additional charges on dispatch of Iron Ore between the period February 2022 and March 2025, calculated at 150% of royalty payable under Section 8A(8) of Mines and Minerals (Development and Regulation) Amendment Act, 2021 ('MMDR Act').
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Expected financial implications, if any, due to compensation, penalty etc./quantum of claims, if any |
NINL believes that its Iron Ore Mine does not fall under the purview of Section 8A(8) of MMDR Act as alleged in the said SCN, and hence the SCN is erroneous. Accordingly, NINL believes that it may not be liable to pay the amount as stated in the SCN. NINL will suitably respond to the SCN and if needed, pursue legal remedies, as appropriate, before court of law.
There is no impact on financial, operational, or other activities of Tata Steel Limited or NINL, arising from the said SCN.
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