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Informist, Tuesday, May 27, 2025

 

NEW DELHI – The Delhi High Court has issued a notice to the government on Tata Steel Ltd.'s petition seeking a compensation of INR 7.57 billion, along with interest, from the Centre for cancellation of the allocation of the New Paratpara Coal Block in Odisha by the Supreme Court. The high court will hear Tata Steel's plea next on Sept. 21.

 

The case has its genesis in Tata Steel's acquisition of Bhushan Steel Ltd. under the corporate insolvency resolution process in 2018. Bhushan Steel was allocated the New Paratpara Coal Block in 2006, and it had made necessary expenses towards development of the coal block.

 

In 2014, the Supreme Court cancelled the allocation of the coal block and followed the same by its subsequent auction. According to the petitioner, as per the Coal Mines (Special Provisions) Act, 2015, compensation was payable to erstwhile Bhushan Steel, which had been amalgamated into Tata Steel, for the expenses incurred in development of the coal block by the subsequent allottee. Tata Steel had filed a petition seeking compensation from the government earlier as well, however, it withdrew the same owing to changes in regulations and circumstances. 

 

On Tuesday, shares of Tata Steel ended 0.5% lower at INR 161.66 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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