Tata Steel has disclosed its compliance with a demand from the Ministry of Steel for an outstanding Steel Development Fund (SDF) loan balance. The company discharged its liability by paying ₹2,970 crore during FY2026. This payment was made without prejudice to its rights and contentions in an ongoing appeal before the Hon’ble High Court of Calcutta. Concurrently, an interim application seeking to prevent the utilization of these funds by JPC has been disposed of with a direction that the fund shall not be utilized or disbursed to third parties until the appeal is decided.
Steel Development Fund Loan Disclosure
Tata Steel Limited has provided an update regarding its outstanding obligations related to the Steel Development Fund (SDF) loan. This disclosure is made in accordance with relevant securities regulations. The company had previously filed a writ petition concerning the rejection of its representation for a waiver of loans availed from SDF, managed by the Joint Plant Committee (JPC) under the Ministry of Steel. This petition was dismissed by the Hon’ble High Court of Calcutta, with liberty granted to approach the JPC. Subsequently, the Company filed an appeal against this order before the Hon’ble High Court of Calcutta (Division Bench), which remains pending.
Payment and Interim Status
On January 17, 2025, the Company received a demand from the Ministry of Steel to settle the outstanding balance of the SDF loan. During the financial year FY2026, Tata Steel discharged its liability towards JPC, aggregating to ₹2,970 crore. This payment was made on a without prejudice basis, preserving the Company’s rights and contentions in the ongoing appeal.
In a related development, the Management sought interim protection to safeguard the amounts deposited with JPC. An Interim Application (IA no. GA/2/2026) was filed before the Hon’ble High Court of Calcutta seeking an injunction on JPC utilizing the said amount of ₹2,970 crore. This IA was heard on September 17, 2026. As per the order received on September 18, 2026, the Hon’ble High Court disposed of the interim application. The court directed that until the appeal is disposed of, the fund shall not be utilized or disbursed to third parties.
Source: BSE
