Stoppage of iron ore despatches from Naomundi to Jamshedpur steel plant
Tata Steel announced that its captive iron ore mining lease in the State of Odisha have been extended till 2030 in accordance with the provision of the MMDR Amendment Act, 2015. However, the Government of Jharkhand has not yet allowed the execution of the supplementary lease deed for extension of the Noamundi iron ore mine in spite of several representations made by the Company on the subject to the state.As the Company did not accept the position taken by the Government of Jharkhand before and after the promulgation of the MMDR Amendment Act 2015, the Department of Mines, Government of Jharkhand, has stopped the issuance of challans (forwarding notes) for despatch of iron ore from Noamundi iron mine in Jharkhand to the Company's steel plant in Jamshedpur. This has resulted in stoppage of despatches of iron ore from Naomundi to Jamshedpur steel plant. The Company has decided to seek legal recourse to resolve this impasse.
While the stoppage of despatches from Noamundi will financially impact the company till the matter is resolved, the company has taken all measures to ensure that operations of Jamshedpur are unaffected by the actions of the State and the company remains committed to its customers and other stakeholders.
Powered by Capital Market - Live News
