7 companies warned for delay in coal mining projects

New Delhi : PTI reported that Indian government has issued warning to seven more firms to begin the development of coal and lignite blocks allocated to them without further delay, failing which their coal blocks would be cancelled.

1. ArcelorMittal India Ltd

2. GVK Power

3. Bhushan Power & Steel Ltd

4. DCM Shriram Consolidated Ltd

5. VS Lignite Power Private Ltd

6. Mideast Intergrated Steels Ltd

7. West Bengal Power Development Corporation Ltd

ArcelorMittal India Ltd 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 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 V S Lignite Power Private Ltd for Lunsara lignite block.

Quite recently, the Indian coal ministry had issued warnings to seven other firms, asking them to either develop the blocks or get them cancelled.

In May, the Coal Ministry said a panel set up by it to look into the process of deallocation of coal blocks had recommended issuing warnings to 29 coal and three lignite blocks allocatees. The panel had also suggested cancellation of 14 coal blocks and one lignite block awarded to six PSUs, including NTPC and three private firms, for failing to develop the mines