The government has issued warning to seven more firms, including Arcelor Mittal, GVK Power and Bhushan Power and Steel, to begin the development of coal and lignite blocks allocated to them without further delay, failing which, their licences to operate those blocks would be cancelled.
"The allocatee is hereby warned and directed to develop the block without any delay. Any further failure in development of the block would lead to necessary action as per the terms and conditions of allocation, including de-allocation of the coal block," the letter issued to Arcelor Mittal and GVK Power said.
Steel maker Arcelor Mittal India and GVK Power were warned for inordinate delay in developing Seregarha coal block, jointly allocated to them to meet the coal requirements for their captive power plants.
Bhushan Power & Steel was warned for the Jamkhani block allocated to it in 2003, to meet the coal requirement of its sponge iron and captive power plants.
In addition, DCM Shriram Consolidated was warned for delaying the development of Kaparion-Ki-Dhani lignite block and VS Lignite Power Private Ltd for Lunsara lignite block. Other firms which were issued warnings include Mideast Intergrated Steels Ltd and West Bengal Power Development Corporation.
The ministry had earlier issued warnings to seven other firms, asking them to either develop the blocks or get them cancelled. It ministerial panel had, in May, recommended issuing warnings to 29 coal and three lignite blocks allocatees.