Tata Steel gets interim relief in Rs 1,755 crore demand notice

Tata Steel has received interim relief in the Rs 1,755-crore demand notice issued by the Jharkhand Government, according to a regulatory filing.

The company has challenged a Rs 1,755 crore mining demand notice issued by the District Mining Office, Ramgarh, Jharkhand, over alleged excess coal extraction of 16.24 million tonnes at the West Bokaro Colliery, beyond permissible limits, during 2000-01 to 2006-07.

The company was of the view that the demand lacked justification and substantive basis and had merit to challenge the demand. Accordingly, in April, Tata Steel had filed a Revision Application before the revisional authority of the coal ministry, challenging the demand notice. The Revisional Authority heard the revision application. The company hereby informs that the Revisional Authority has, inter alia, passed the following directions: the Revision Application filed by Tata Steel Ltd has been admitted for consideration.

The respondents are directed not to take any coercive steps against the Applicant pursuant to the impugned demand notices/letters during the pendency of the present Revision Application,” Tata Steel said in the filing.

Tata Steel will invest Rs 11,000 crore in Jharkhand to develop advanced-grade steel at its Jamshedpur facility, Tata Group Chairman N Chandrasekaran had earlier said.

The technology developed by the Tata Group for advanced steel production will benefit other steelmakers, too, he had said.