The coal ministry on Monday issued show-cause notices to two firms, Jindal Steel and Power Limited (JSPL) and Tenughat Vidyut Nigam Limited, for not developing coal blocks allocated to them within the stipulated time frame.
The notices were issued to the companies for not beginning production from Ram Chandi Promotional CTL Block and Badam coal blocks respectively,
according to the coal ministry.
The crackdown is part of the government's exercise to ensure that the allocated blocks do not remain unproductive.
The development comes close on the heels of the coal ministry issuing show-cause n
otices to 23 firms, including SAIL, Monnet Ispat, NTPC and GVK Power earlier this month for not developing the mines alloted to them for captive use.
Last year, CAG in a report had estimated likely financial gains of Rs.
1.86 lakh crore to accrue to private firms on account of mines allocation without auction.
The captive coal block allocation issue has taken political overtures and the CBI is also investigating it.
Last year, in a similar exercise, the government had issued show cause notices to 58 coal block allocattees and deallocated blocks of some developers. It also deducted bank guarantees for some others.