Govt warns 7 firms including ArcelorMittal for delay

New Delhi : The government has issued warning to seven more firms, including ArcelorMittal, 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 coal 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 ArcelorMittal and GVK Power said.

Steel maker ArcelorMittal India Ltd and GVK Power (Govindwal Sahib) Ltd 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 Ltd was warned for Jamkhani coal block allocated to it in 2003, to meet the coal requirement of its sponge iron and captive power plants. In addition, DCM Shriram Consolidated Ltd was warned for delaying the development of Kaparion-Ki-Dhani lignite block and VS Lignite Power Private Ltd for Lunsara lignite block.