Vedanta's Subsidiary ESL Steel Receives ₹1,255 Crore Demand Notice from Odisha Mines Dept

Mumbai, January 18, 2026: Vedanta Limited has informed the stock exchanges that its subsidiary, ESL Steel Limited, has received a significant financial demand from the Steel & Mines Department of the Odisha government.

In a regulatory filing on Saturday, Vedanta disclosed that ESL Steel received two demand notices on January 17, 2026, from the office of the Deputy Director of Mines, Koira Circle. The notices, dated January 16, 2026, relate to an alleged shortfall in fulfilling the Minimum Production and Dispatch Targets (MDPA Targets) for the fourth year of operation of two mining leases—BICO and Feegrade Mine.

Financial Impact:
The Odisha government has demanded an aggregate amount of ₹12,55,37,61,591 (approximately ₹1,255.38 crore) from ESL Steel towards the alleged production and dispatch shortfall for the relevant period.

Legal Basis of the Demand:
The demand is issued under Sub-Rule 1 of Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016. This pertains to the Mine Development & Production Agreement (MDPA) dated November 15, 2021, governing the two mining leases.

Company's Stance and Next Steps:
Vedanta stated that ESL Steel is currently evaluating the demand notices and the related computations. The company believes that "the same are not sustainable on merits."

Consequently, ESL Steel plans to pursue appropriate legal remedies, including seeking a stay over the demand notices and requesting reliefs such as the quashing of the impugned demands.

Regulatory Disclosure:
The disclosure was made by Prerna Halwasiya, Company Secretary & Compliance Officer of Vedanta Limited, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The financial markets will be closely watching the legal developments, as the ₹1,255 crore demand represents a material contingent liability for Vedanta's steel subsidiary.