Tata Steel has been served a demand notice of Rs 1,755.10 crore by the District Mining Office in Jharkhand’s Ramgarh for purportedly exceeding coal extraction limits at its West Bokaro Colliery between FY2000-01 and FY2006-07. The notice, dated March 30, was received by the company on April 3. The notice claims that Tata Steel extracted about 1.62 crore metric tonnes of coal beyond the allowed limits during the mentioned timeframe.
The demand notice is based on reasons akin to those highlighted by the Supreme Court in the Common Cause versus Union of India case, which focused on unauthorized mining and surplus production. Tata Steel has expressed disagreement with the demand and intends to contest it in the appropriate legal forums. The company’s management views the demand as lacking justification and a solid foundation for the claim.
Tata Steel recently disclosed a consolidated net profit of Rs 2,689 crore in the December quarter, marking a substantial 723% increase from the previous year’s Rs 327 crore. Despite a 6% rise in revenue to Rs 57,002 crore in Q3 FY26 from Rs 53,648 crore in the corresponding period of the prior fiscal year, the net profit saw a 13% decline sequentially from Rs 3,102 crore in Q2 FY26. The EBITDA reached Rs 8,309 crore, a 39% year-on-year increase, with a margin of approximately 15%.
