Show cause notices have been issued to eight firms, including Hindalco Industries and Mahanadi Coalfields, by the Ministry of Coal for production delays at mines allocated to them.
The ministry has asked these firms why they should not be proceeded against and or penalised for delaying the development of coal blocks, why such blocks should not be de-allocated be cause of violations of terms and conditions.
If the companies fail to give reasons for the delays, appropriate action would be taken for de-allocation, the ministry has warned.
At least five firms have been asked to explain why there has been slow progress in the development of the coal blocks. JSW Steel Ltd and Bhushan Power and Steel Ltd are mong these firms who have been asked to respond.
