A special forest bench headed by Chief Justice K G Balakrishanan, while granting approval for prospecting licence to Tata, said that the company should approach Director General, Forest, for clearance.
The Delhi High Court on February 18 had quashed the Centre's decision to grant a prospecting licence to Tata Steel for mining the ore over an area of 2,500 hectares in Deposit No 1 of Bailadila Reserve Forest for its steel plant.
The High Court had passed orders in response to a petition by the state-run mineral company NMDC Ltd, which sought cancellation of the Centre's approval granted to Tata Steel on February 14, 2007.
NMDC had claimed that its preferential right were overlooked by the authorities and all clearances were granted in violation of Forest Conservation Act.
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Challenging the decision, Tata said that there was no diversion of any forest land for any non-forest purpose.
Tata counsel FS Nariman contended that not all activities under Mines and Mineral (Development and Regulation) Act, 1957 require use of forest land and forest clearance was not required for reconnaissance or even for prospecting if (i) the number of bore-holes do not exceed 10 per sq kms, (ii) the licensee doesnot collect samples of the ores and (iii) the bore-holes were upto 4 inches in diameter.