Tata Steel to sell iron ore to Bhushan Steel at arm's length pricing

Though Tata Steel now owns Bhushan Steel, it needs state govt's nod to supply ore from its captive mine as BSL remains a separately listed entity

Tata Steel has got the Odisha government's nod to sell iron ore from its captive Khandabandh mine in the state to its newly acquired Bhushan Steel plant.

Though Bhushan Steel Ltd (BSL), in which Tatas have acquired 72.65 per cent stake, has become a subsidiary of Tata Steel, the latter requires the permission of the state government to supply ore from its captive mine, as BSL continues to be a separately listed entity. 

Khandabandh mine at present supplies ore to Tata Steel’s Kalinganagar facility, which is considered to be an internal captive transaction. But unlike that, the supplies to Bhushan