The government has issued show-cause notices to Jindal Steel and Power (JSPL) and two others, asking them to explain why the coal blocks allocated should not be taken back after their failure to develop the reserves within the stipulated time.
The coal blocks were allocated to these firms for captive use.
In three separate notices to JSPL, Chattisgarh Captive Coal Company Ltd and Madanpur North Coal Company Ltd yesterday, Coal Ministry has said that they repeatedly failed to keep their promises and are thus "non-serious about timely development of the blocks."
The Coal Ministry has given these firms 30 days to explain why coal blocks alloted to them were not developed.
It also warned them that if they fail to respond in a month the de-allocation process would be initiated.
Jindal Steel and Power Ltd(JSPL) was issued notice for failing to develop Utkal B-1 coal block, allocated to it in 2003 for supply of coal to the proposed 2 million tonnes per annum (MTPA) sponge iron plant and 80,000 tonne capacity ferro alloys plant in Orissa besides two captive power plants.
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Chhattisgarh Captive Coal Company, a joint venture conglomerate led by Ispat Godavari, was issued notice for non-development of Nakia-I and Nakia-II coal blocks, while Madanpur North Coal Company Limited for Madanpur North coal block.
Earlier, the government in September had said it was in the process of issuing show-cause notices to as many as 81 firms for violation of terms and conditions of the coal block developments.
In July, the ministry had convened a review meeting with the concerned companies, which have been allocated a total of 207 coal blocks for captive use under power, cement and steel projects. In the earlier such drive, the government had deallocated 11 coal blocks.