Informist, Friday, Nov. 8, 2024

NEW DELHI – The Delhi High Court on Friday directed the linkage committee of the government to provide an "uninterrupted supply" of 250,000 tonnes per year of iron ore to Sunflag Iron and Steel Co. Ltd. for its integrated steel plant at Bhandara in Maharashtra. The court asked the committee to provide iron ore at the rate of 20,000 tonnes per month. The court ordered Steel Authority of India Ltd. to provide the uninterrupted supply of iron ore to Sunflag Iron with immediate effect till the appropriate linkage is provided by the government.

The high court said the notification issued by the government in 2006 is held to be "not retrospective" and that Rowghat F deposit in Bastar in Chhattisgarh cannot be reserved exclusively for any government company or corporation until a contractual obligation is created to continuously and uninterruptedly supply the required iron ore to Sunflag Iron.

In 2006, through a notification, the government reserved the Rowghat F deposit for Steel Authority of India and said no further prospecting licence or mining lease would be granted in such an area for 10 years. The high court set aside the government order government that had rejected Sunflag Iron's application for a prospecting licence for Rowghat F.

Sunflag Iron had moved the high court challenging the arbitrary actions of the government and Steel Authority of India for not providing the uninterrupted supply of iron ore as assured to the company.

On Friday, the shares of Sunflag Iron and Steel Co. Ltd. ended 0.5% higher at INR 214.90 on the National Stock Exchange, while those of Steel Authority of India ended 4.2% lower at INR 118.21. End

Reported by Surya Tripathi

Edited by Saji George Titus

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