Odisha’s finance machinery has swung into action, slapping ESL Steel—a Vedanta arm—with a hefty ₹1,255.38 crore demand notice. This escalation highlights deepening tensions between the state and major industrial houses over outstanding payments.
Breaking down the notice, it encompasses arrears in mining dues, electricity charges, and other fiscal liabilities linked to ESL Steel’s iron ore mining and steel production activities. The Vedanta subsidiary, operational in Kalinganagar, has been navigating a complex web of permissions and audits, which likely precipitated this development.
Vedanta Group, led by Anil Agarwal, has invested billions in Odisha’s mineral-rich belts, but not without friction. Past disputes over environmental clearances and land acquisitions have strained relations. This latest notice amplifies those concerns, potentially impacting investor confidence in the region.
Industry analysts point out that Odisha’s aggressive revenue recovery drive aligns with its push for sustainable development. The state collected over ₹50,000 crore from minerals last fiscal year, and such notices are tools to sustain that momentum. ESL Steel’s management is reportedly assessing options, including challenging the quantum in appellate forums.
The steel sector, already reeling from global supply chain disruptions and import pressures, now faces this domestic hurdle. For Odisha, it’s a balancing act: attracting investments while safeguarding public funds. As legal proceedings unfold, this case will test the mettle of both the government and the corporate entity.
