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Tata Steel has secured interim relief from coercive action over a INR 1,755 crore mining demand raised by the Jharkhand government in connection with alleged excess coal extraction at its West Bokaro Colliery. The company had challenged the demand before the revisional authority of the Ministry of Coal, arguing that the notice lacked sufficient basis. The authority has admitted Tata Steel’s revision application and directed that no coercive measures be taken while the matter remains under consideration.
Tata Steel has received interim relief in a INR 1,755 crore mining demand dispute with the Jharkhand government concerning alleged excess coal extraction at its West Bokaro Colliery in Ramgarh district. The demand notice was issued by the District Mining Office, Ramgarh, and relates to alleged extraction of 16.24 million tonnes of coal beyond permissible limits during the period from 2000-01 to 2006-07. Tata Steel has disputed the basis of the demand and maintained that it had sufficient grounds to challenge the notice.
The company filed a Revision Application before the revisional authority of the Ministry of Coal in April, seeking a review of the demand. The application was subsequently heard by the authority.
In its latest regulatory filing, Tata Steel said the Revisional Authority had admitted its application for consideration. The authority has also directed the respondents not to take any coercive action against the company in connection with the disputed demand notices or related communications while the revision proceedings remain pending.
The interim direction provides Tata Steel protection from enforcement measures linked to the INR 1,755 crore demand during the pendency of the proceedings. The final outcome will depend on the authority's consideration of the company's revision application and the underlying dispute over the alleged excess extraction.
The mining dispute comes as Tata Steel continues to maintain a significant investment focus in Jharkhand. Tata Group Chairman N Chandrasekaran had earlier announced plans for an investment of around INR 11,000 crore in the state, including the development of advanced-grade steel facilities at the company's Jamshedpur operations.
According to the company's earlier statements, technology developed by the Tata Group for advanced steel production could also have wider applications across the domestic steel industry.
The dispute centres on the period between 2000-01 and 2006-07, when the authorities alleged that coal production at West Bokaro exceeded the limits permitted under the applicable mining framework. The INR 1,755 crore demand represents the financial consequence sought by the state authorities in relation to the alleged excess extraction. Tata Steel, however, has contested the demand and is seeking a review of the matter through the designated revision process.
The admission of the revision application means that Tata Steel's objections will now be examined by the competent revisional authority. The direction against coercive action remains in force while the proceedings are pending, but it does not constitute a final determination on the underlying demand. The outcome of the revision process will therefore determine whether the disputed liability is sustained, modified or otherwise addressed by the authority.
Source PTI
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