Demand Notice issued by Govt. of Odisha for matter related to Jajang Iron Ore Block.
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JSW Steel has received a demand notice dated August 21, 2025 from the Government of Odisha for Rs. 1,472.69 crores (Rs. 1472,69,47,420) towards alleged shortfall in minimum despatch requirements for the Jajang Iron Ore Block in Keonjhar, Odisha. The demand is raised under Rule 12A(2) of the Mineral Concession Rules, 2016 for the 5th year of the lease period (June 27, 2024 to June 26, 2025). The company had earlier surrendered the block in August 2024 due to uneconomic operations, and mining ceased from December 2024 per the Indian Bureau of Mines' approval. The company must pay within 15 days of receiving the notice. JSW Steel has stated it believes due legal process was followed and plans to pursue appropriate legal remedies in consultation with its advisors.
This creates a significant contingent liability of approximately Rs. 1,472 crores for JSW Steel. While the company intends to contest the demand, the stock may face short-term pressure on concerns of a large cash outflow if the demand is upheld. Investors should watch for further updates on the company's legal response and any impact on the broader Odisha mining portfolio.