​​​​​​​Bhubaneswar, January 18: The Odisha government has issued a demand for Rs 1,255.38 crore from ESL Steel Limited, a subsidiary of Vedanta Limited, alleging a failure to meet its minimum production targets from mines leased to the company in the state. This demand was disclosed by the company in a filing to the stock exchanges.

In a regulatory notice filed on Saturday, Vedanta revealed that ESL Steel had received two demand notices on January 17, 2026, from 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 operations at two mining leases—BICO and Feegrade Mine.

According to the Demand Notices, ESL Steel has been asked to pay a total of Rs 1,255.38 crore due to the alleged shortfall in production and dispatch during the relevant period.

The company’s filing states that ESL is in the process of assessing the validity of the Demand Notices and their related calculations. ESL contends that the demands are not legally justified and intends to pursue legal action, including seeking a stay on the notices and challenging the demands in court.

The production and dispatch targets for these mining leases were set based on an agreement with the Odisha government's mining department. The notices were issued because the company allegedly failed to meet the 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 under the Mine Development & Production Agreement dated November 15, 2021.

The disclosure was made in compliance with the SEBI Listing Regulations and shared with the Bombay Stock Exchange and National Stock Exchange.