Jharkhand Issues Rs 1,755 Crore Notice to Tata Steel Over Coal Extraction

New Delhi — Tata Steel has received a demand notice of ?1,755.10 crore from the District Mining Office in Jharkhand’s Ramgarh district over alleged excess coal extraction at its West Bokaro Colliery.

The notice, dated March 30 and received by the company on April 3, claims that Tata Steel mined around 1.62 crore metric tonnes of coal beyond permitted limits between FY2000-01 and FY2006-07.

The demand is based on principles laid down in the Common Cause vs Union of India case, where the Supreme Court of India addressed issues related to illegal mining and excess production.

Tata Steel has disputed the notice, stating that it lacks proper justification and legal basis. The company has indicated that it will challenge the demand before appropriate judicial or quasi-judicial authorities.

Despite the regulatory setback, the company recently reported strong financial performance. It posted a consolidated net profit of ?2,689 crore in the December quarter, marking a sharp year-on-year increase. Revenue also rose to ?57,002 crore during the same period.

However, on a sequential basis, profit declined from the previous quarter, along with a slight dip in revenue. The company’s EBITDA stood at ?8,309 crore, reflecting solid operational performance.

Shares of Tata Steel recently closed nearly flat on the National Stock Exchange of India, indicating limited immediate market reaction to the development.

With inputs from IANS