New Delhi: Steelmaker ArcelorMittal Nippon Steel India (AM/NS) has withdrawn its plea against the Union government in the Delhi high court, challenging the rejection of its import orders for metallurgical coke or met coke from Indonesia and Poland.
A high court single bench led by justice Sachin Datta had on 6 March issued notice to the government and sought its response after the joint venture unit of the world’s largest steelmaker moved a writ petition against the rejection of 168,300 metric tonnes of met coke imports. The company had sought relief against the rejection of these orders.
A copy of the high court order, dated 8 April, seen by Mint, shows that the company decided to withdraw its plea after reportedly receiving the Centre’s approval to import the additional quantity.
According to media reports, the government has allowed the import of 71,500 mt met coke from Poland and also approved the company’s request to divert an existing quota of 88,000 mt—earlier allocated for imports from Russia—to Poland.
The Indian government had initially rejected the import request, stating the company had sufficient quantities of met coke. But the company argued that the decision “militates against” India’s free trade policy, which allows import of already placed orders before any restrictions are imposed.
In January, the Indian government imposed curbs on imports of low-ash metallurgical coke, or met coke, with country-specific quotas to support domestic suppliers. This move alarmed major players like ArcelorMittal Nippon Steel India, which raised concerns over quality issues with locally available met coke.
Metallurgical coke (also known as met coke) is used in the steelmaking industry. It is produced by heating coking coal in the absence of air at high temperatures in coke ovens—a process called carbonization.
In its plea, AM/NS India argued that the restrictions would impact its production and expose it to “significant financial harm (both on account of breach of contractual obligations to its suppliers and customers).” It added that each consignment could cost the company $25 million, and it also faced vessel detention charges of $27,004 per day if permissions were delayed.
Before AM/NS India, JSW Steel had also moved the Delhi high court against the import restrictions. JSW had challenged the government’s decision to reject $90 million worth of imports placed before the January curbs. Trafigura’s India unit too had filed a lawsuit seeking clearance for one of its rejected shipments.
However, in an order dated 28 March, the high court dismissed both JSW Steel’s and Trafigura’s pleas.
