Four firms, including a Hindalco-Essar Power joint venture have been served notices for delay in developing coal blocks within stipulated time.
Essar Group, however, claims it is in compliance with the cola mines allocation conditions in toto.
In separate notices to Mahan Coal Ltd, Rungta Mines, Jayaswal Neco and North Dhadu Mining Company, the Coal Ministry said the firms had failed to keep promises and were not serious about the timely development of the block.
The firms have been asked to explain why coal blocks allocated to them should not be withdrawn as they had failed to develop the reserves within the stipulated time. They have been given a month to explain the reasons for the delay.
The ministry has warned that the de-allocation process would be initiated against companies failing to respond within the given month.
Mahan coal block in MP was jointly allocated to Essar Power and Hindalco Industries to serve their coal requirements of 137.04 MT and 89.076 MT for their proposed 1000 MW and 650 MW power projects respectively.