"... the Department of Mines, Government of Jharkhand, has stopped issuance of challans (forwarding notes) for dispatch of iron ore from our Noamundi iron ore mines in Jharkhand to our steel plant in Jamshedpur," Tata Steel said in a BSE filing.

"This has resulted in the stoppage of dispatches of iron ore from Noamundi to Jamshedpur steel plant. The company has decided to seek legal recourse to resolve this impasse," it add. Tata Steel stated, “This development will financially impact the company till the matter is resolved but it's taking measures to ensure its Jamshedpur operations are not affected.”

Elaborating, the company said, "The company's captive iron ore mining leases in Odisha have been extended till 2030 in accordance with the provisions of MMDR Amendment Act, 2015. However, the Jharkhand government has not allowed the execution of supplementary lease deed for extension of the Noamundi iron ore mines in spite of several representations to the state." The Noamundi mines had been closed since September on renewal of lease issues, which forced Tata Steel to resort to imports of iron ore.

In January this year, Tata Steel had resumed production at Noamundi iron ore mines after a gap of nearly four months. The Jharkhand mines with a 10 million tonnes per annum capacity is crucial to Tata Steel's raw material supply for its 9.8-mtpa Jamshedpur facility.

Latest News  from Business News Desk