ArcelorMittal's joint venture in India has filed a lawsuit against the New Delhi government for rejecting its steelmaking raw material imports. The company claims that India wrongly enforced import restrictions retroactively, which has affected its business, according to documents. 

In January, the Indian government introduced limits on importing low-ash metallurgical coke (met coke), with specific quotas for different countries to support local suppliers. This policy has raised concerns among major firms like ArcelorMittal Nippon Steel India, which worry about the quality of locally sourced met coke. ArcelorMittal Nippon has privately informed New Delhi that it may have to significantly reduce steel production and postpone expansion plans due to the imposed restrictions. In response to the situation, the company filed a petition in the Delhi High Court on March 5, challenging the authorities' decision to reject its import orders for 168,300 million tonnes of met coke from Indonesia and Poland, which were placed before the new curbs took effect.

Indian government denied its request to import, claiming that the company already had enough met coke. However, ArcelorMittal Nippon claimed in its court filing—which Reuters was the first to report on—that the decision "militates against" the nation's free trade policy, which permits the import of orders that have already been placed before restrictions are put in place. New Delhi's attempt to apply its policy change retroactively has raised concerns, as stated in the 290-page filing. This move is seen as creating uncertainty and reducing traders' and investors' confidence in policy assurances. The company, a joint venture with a 60-40 partnership between Luxembourg-based ArcelorMittal and Japan's Nippon Steel, has not responded to requests for comments. India's government has also remained silent. According to a March 6 court order, officials must reply to ArcelorMittal Nippon's plea by next week.

Meanwhile, JSW Steel, a larger competitor, has taken the Indian government to the Delhi High Court over delays in approving previous met coke imports valued at around $90 million. JSW Steel argues that proper policy implementation is crucial for businesses to plan and function efficiently, as stated in court documents. A decision on JSW Steel's plea is still pending, and the company has declined to comment. India's Steel Secretary, Sandeep Poundrik, stated on Wednesday that there is a sufficient domestic supply of met coke. However, companies are opting for imports because they are $50-100 per tonne cheaper. In its court statement, ArcelorMittal Nippon contended that the action taken by New Delhi would affect its output and put "it to significant financial harm (both on account of breach of contractual obligations to its suppliers and customers)."

The company warned that import restrictions could force it to shut down its blast furnace operations by June or reduce production starting in April, according to a confidential letter sent to the Indian government on February 19. Court documents also reveal that the company may face costs of $25 million per consignment and vessel detention charges of $27,004 per day if approvals are delayed. ArcelorMittal Nippon holds a 5% share in India's steel market, which has an annual production capacity of 200 million metric tons. Meanwhile, India's imports of low-ash met coke have more than doubled in the past four years, prompting New Delhi to limit total imports to 1.4 million metric tons between January and June.