Tata Steel Ltd has shut down its 50,000 tonnes per annum ferroalloys plant at Bamnipal in Keonjhar district of Odisha due to raw material shortage caused by suspension of a mining licence, the company said in a statement late on Friday.

Tata Steel sourced ore for the Bamnipal plant from its captive chromite mine in Sukinda, where operations had to be suspended from 17 May this year because of non-renewal of lease.

According to a report in the Business Standard citing company spokesperson, the suspension at these to sites have also resulted in a Rs 300 crore loss for the government.

The report states that the Sukinda mine was shut as the company’s mining lease, which expired in 2013, was not renewed due to a court restraint on it. Five companies have filed a case against licence renewal for Tata Steel questioning the steel major’s requirement for such a huge lease area, it said.