The government has issued notices to Domco Smokeless and Abhijit Group firm Corporate Ispat 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 reserves were allocated to these firms for captive use.
In notices dated September 30, the Coal Ministry has given the firms 30 days to explain why the two separate 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 for "violation of the terms and conditions".
The two companies could not be contacted for their comments.
Including the notices to these firms, the Ministry has quizzed 18 firms so far. Last month, the government had said it was in the process of issuing show-cause notices to 81 firms. Last week, it issued notices to 10 firms, including NTPC, DVC and Hindalco.
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The notices, which say that both the firms have been unsuccessful in adhering to commitments made to the government to develop their respective coal blocks, come as part of the Coal Ministry's efforts to "weed out non-serious" companies that have procrastinated development of allocated captive blocks.
The Ministry asked, "why the delay in the development of the coal block should not be held as violation of the terms and conditions?"
Corporate Ispat Alloys was given notice for Chitarpur coal block in Jharkhand which was handed over to it in 2005 to meet the coal requirement of 0.75 mtpa capacity of sponge iron plant in Jharkhand.
The notice was served to Domco Smokeless Fuels for inordinate delays in developing Lalgarh (North) coal block in Jharkhand alloted in 2005 to meet coal requirement of five lakh tonne per annum capacity pig iron plant in Orissa.
The Ministry said if the companies did not reply in a month's time "it would be presumed that your company has no explanation to offer and action as appropriate would be taken against your company for deallocation of the said block".
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.
India produced about 532 million tonnes of coal in 2009-10 and aims to cross the 600 million tonnes mark in 2010-11. However, the demand-supply gap is likely to be in the range of 80 million tonnes. The gap is expanding rapidly, he said.
In the previous such drive, the government had deallocated 11 coal blocks.