The government has served notices on SKS Ispat and Pushp Steel, asking them to explain why coal blocks allocated to them should not be withdrawn after their failure to develop the reserves within the stipulated time.
The notices, which have been issued by the Coal Ministry, have asked the two companies to explain reasons behind delays within 30 days of the show-cause, failing which actions like de-allocation of the blocks could be initiated.
"It is seen that the company has repeatedly failed to keep its promises made to the Ministry and is thus non-serious about timely development of the block," Ministry said in two separate notices to the companies.
Pushp Steel & Mining was issued notice for delay in development of Brahampuri coal block in Madhya Pradesh, allocated to it in 2007 to meet the coal requirement of 0.42 MT sponge iron plant in Chhattisgarh.
SKS Ispat and Power, on the other hand, was issued notice for Rawanwara North coal block in Madhya Pradesh, allocated to it in 2007 to meet the coal requirement for their 0.57 mtpa sponge iron plant in Raipur, Chhattisgarh.
The notices are part of a government's drive against non- serious players and in September, the Ministry 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.