The Centre's decision to cancel the mine follows recommendation for de-allocation by an Inter-Ministerial Group which reviewed the progress of Madanpur (North) block in Chhattisgarh and found it unsatisfactory.
"The Madanpur (North) block allocated to your company vide this Ministry's letter dated January 13 is de-allocated," Coal Ministry has said in a letter to the CMDs of Ultratech Ltd, Singhal Enterprises, Navbharat Coalfields, Vandana Energy, Prakash Industries, Anjani Steel, Sunflag Iron and a consortium of companies.
The block has a coal reserve of 242 million tonnes (MT) and was allotted to these companies for sponge iron plant.
These companies had formed a joint venture company "Madanpur (North) Coal Company Private Ltd" to develop the block.