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Vedanta Faces ₹5600 Crore Demand: 22-Year-Old Bauxite Deal, High Court, and Supreme Court Battle
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CNBC Awaaz•05-10-2026, 12:52
Vedanta Faces ₹5600 Crore Demand: 22-Year-Old Bauxite Deal, High Court, and Supreme Court Battle
- •Vedanta Aluminium faces a demand of ₹5,600 crore from Odisha Mining Corporation (OMC) for bauxite supply, with a payment deadline of October 31, 2026.
- •The dispute stems from a 2004 agreement for bauxite pricing, which Vedanta claims assured long-term supply and price stability, leading to significant investments in Odisha.
- •OMC terminated the old agreements in 2015 following changes in mining laws, a decision the Odisha High Court upheld, dismissing Vedanta's plea for the old pricing system.
- •The ₹5,600 crore demand arose after the High Court allowed OMC to proceed with payment demands based on the prescribed Average Sale Price system.
- •Vedanta has appealed to the Supreme Court, seeking a stay on the High Court's order, with a hearing scheduled, while also being the highest bidder for Odisha's Karlapat bauxite block.
Key Questions Answered
The demand of 5,600 crore rupees was raised by the Odisha Mining Corporation after the Odisha High Court dismissed Vedanta's petition seeking the implementation of the bauxite pricing system from a 2004 agreement.
Following changes under the Mines and Minerals Development and Regulation Act, OMC terminated the old joint venture agreements in September 2015. Because Vedanta did not challenge the termination at the time, that decision became final and legally unchallengeable in its old form.
Vedanta has filed a petition in the Supreme Court demanding a stay on the Odisha High Court's order, with the hearing scheduled for Friday.
