Companies such as Jindal Steel and Power Ltd (JSPL), Navbharat Power, JAS Infrastructure, JLD Yavatmal, Vini Iron and Steel, AMR Iron and Steel, Kamal Sponge Steel face the risk of de-allocation of coal mines.

These coal mine owners, which have been nailed by the Central Bureau of Investigation in the alleged coal scam, is expected to face action from the Coal Ministry if they fail to convince the Government for delay in developing the mine.

The Ministry could also consider deducting bank guarantees in some cases.

Till now, the CBI has registered 13 cases against coal block owners. Of these, two blocks – Lohara East in Maharashtra allocated to Grace Industries and North Dhadu in Jharkhand given to Jharkhand Ispat – have been de-allocated due to unsatisfactory progress.

Last week, the inter-ministerial group reviewed the progress of the blocks allocated to companies under CBI’s investigation. The report would be submitted to the Coal Ministry shortly, which would issue ‘blanket show-cause’ notice to the companies for not exploring the mines, said a senior Coal Ministry official.

Moreover, the Ministry would also ask the respective States where the blocks are located to offer their views on why the mines are not being developed, he added.

This is because in many cases, the companies blame pending regulatory clearances from State Governments for the reason for delay in developing the blocks. The blocks are located across Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, and West Bengal.

This step may create problems for some cement and steel companies too. For instance, the Rampia and Dip side of Rampia block in Odisha was awarded to Sterlite, GMR, Arcelor Mittal, Reliance Energy, Navbharat Power and Lanco. But, the CBI has booked only Navbharat Power for bagging the block on false representation.

> siddhartha.s@thehindu.co.in

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