Odisha Govt Issues ₹1,473 Crore Demand Notice to JSW Steel on Jajang Iron Ore Block

25 Aug 2025 , 09:18 AM

Sajjan Jindal-led JSW Steel Ltd has received a demand notice of ₹1,472.69 crore from the Odisha government in connection with the Jajang iron ore block in Keonjhar district.

The notice, issued on August 21, 2025, directs the steelmaker to clear the dues within 15 days. The demand has been raised towards shortfall in despatches against the minimum requirement stipulated under Rule 12A(2) of the Mineral (Other than Atomic & Hydrocarbon Energy Minerals) Concession Rules, 2016. It pertains to the entire fifth year of the lease period, covering June 27, 2024, to June 26, 2025.

JSW Steel had previously disclosed in August 2024 that it had surrendered the Jajang block citing uneconomic operations. Mining activities at the site came to a halt in December 2024 under a Final Mine Closure Plan approved by the Indian Bureau of Mines. The company has maintained that it has adhered to due legal process and intends to pursue appropriate remedies in consultation with its legal advisors.

Q1 Performance Snapshot
For the June quarter, JSW Steel posted a consolidated net profit of ₹2,184 crore. This is sharply higher than ₹845 crore in the same period last year. The jump was driven by lower costs. The total expenses falls by over ₹1,400 crore, or 3.3% year-on-year, to ₹40,325 crore.

Revenue growth remained subdued at 0.5%.Its consolidated sales recorded ₹43,147 crore. However, improved cost management boosted operating performance. EBITDA rose 37.5% year-on-year to ₹7,576 crore, while margins expanded by nearly 500 basis points to 17.56%, compared to 12.83% in the corresponding quarter last year.

On the balance sheet front, net debt stood at ₹79,850 crore at the end of June 2025. This is higher by ₹3,287 crore from March 2025, largely on account of working capital requirements. The company’s net debt-to-EBITDA ratio improved slightly to 3.2x from 3.34x in the previous quarter.

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