Tata Steel to make representation to Orissa

New Delhi: Tata Steel Ltd will make a representation to Orissa to ask for cancelling a fine demanded by the state government for the company’s iron ore mining in the state, an industry official said on Monday, as the state tightened its mining rules in the wake of continuing scrutiny on illegal mining.

Tata Steel, which has mines in Joda, Sukinda and Khondbond in Orissa all of which supply iron ore to its Jamshedpur steel plant, has received notices issued from Joda asking for a sum of Rs.6,000-7,000 crore as a fine for excessive production, the official said.

An official statement from the company said it had not broken any law.

“Tata Steel has received notice from the government and we will revert to the government with our submission. We reiterate our contention that we have always undertaken mining in Orissa and also in other states where we operate with strict conformity with the existing laws,” the official statement from the company said. “Government of India has recently brought out a notification defining irregularity in mining operations and illegal mining. This distinction is an important aspect of the whole issue of the demand put forth by the state government.”

Orissa’s director of mines Deepak Kumar Mohanty did not answer his phone when called for comments.