Jamshedpur, Oct. 21: The state revenue and land reforms department has dire-cted the district administration to re-evaluate charges to be levied on Tata Steel for renewal of land under Schedule IV.

The land comes under the category of sub-leased lands. The East Singhbhum district administration had earlier worked out the penalty charges under Schedule IV land at Rs 110 crore and had threatened to lodge a certificate case against Tata Steel. The company approached Jharkhand High Court pleading for a reduction in the amount.

The letter from the revenue and land reforms department said the calculation of interest against the outstanding amount has to be reworked. The state advocate-general has also given a similar suggestion, the letter said. Deputy development commissioner of East Singhbhum Nagendra Prasad Singh confirmed that the letter had been sent by the secretary of the revenue and land reforms department.

?Necessary steps would be taken only after the deputy commissioner returns on October 23 from South Korea,? he said, adding that the state land and revenue department has asked the district administration to reduce the rate of interest calculated on the outstanding amount for the Schedule IV land.

According to sources, the district administration was also planning to lodge a counter affidavit against the steel company by the end of this month. Sources said if the amount of interest is reduced, the outstanding amount would come down to about Rs 70 crore.

The district administration has lifted the ban on the proposed 2.4 million-tonne expansion plan of Tata Steel, following a directive from the state government.

The East Singhbhum district administration had in August prevented the steel major from initiating steps to expand its unit saying the renewal of the land lease agreement between the state government and the company was yet to be finalised.

The deputy development commissioner said: ?Permission has been granted to Tata Steel to go ahead with its expansion plan, which would cover an area of about 37 acres.?

Insiders in the land and revenue department said the chief minister is serious about finalising the new lease deed for land under Schedule I, II and II.

?The new lease draft is expected soon and it will have some last minute alterations to protect the steel major?s interest with respect to all the three categories of land,? said an official.