Twelve companies received show cause notice from the union coal ministry for not developing the allocated coal blocks within the stipulated timeframe.
The 12 companies, which include NTPC, SAIL, Damodar Valley Corporation, Bhushan Steel and Power, were asked to explain why their failure to develop the block on time should not be held as violation of the terms and conditions of the allotment.
These firms were given time till June 30 to respond to the notice, failing which the ministry may take appropriate action against the companies for deallocation.
NTPC and SAIL were issued show cause notices for failing to develop Talaipalli block and Sitanala Coking Coal block.
Some other firms like TVNL, West Bengal Power Development Corporation, Maharashtra State Mining Corporations were also issued the notice.
The notices to firms were issued for 12 blocks including Gondulpara, Jamkhani, Brinda, Sasai, Meral, Radhikapur (West), Gangaramchak, Gangaramchak Bhadulia, Marki Barka and Warora coal blocks alloted between June 2003 and July 2007.
Some days ago, the ministry issued show cause notices to 11 firms, including JSPL, Monnet Ispat, NTPC and GVK Power for not developing the mines alloted to them for captive use.