Mumbai, June 22 (IANS) India's largest private steel maker Tata Steel Wednesday said it had received $130 million following arbitration proceedings between its UK-based subsidiary and some buyers who broke off an offtake agreement.

"Tata Steel UK Ltd (TSUK) had on January 5, received a partial final award in its favour in an ongoing arbitration between TSUK and certain offtakers of the Teeside cast products business," the Indian steel maker said in a regulatory statement.

"Amongst other matters, the arbitral tribunal found that the offtakers did not validly terminate their offtake agreements," it added.

Following the termination of the agreement by the buyers, Tata Steel had mothballed Teeside cast product mill and sold the assets to Thailand's largest steel producer Sahaviriya Steel Industries for $469 million in 2011.

Mothballing is a practice followed by companies under which they keep equipment in a factory in working order but do not use it on a constant basis. Such a practice helps the company save expenses and still use the facility when needed.

"Following that partial final award, a commercial settlement to all disputes relating to the off take agreements was reached. As a result of this settlement, Tata Steel has received an aggregate sum of US$130 million," said the company.