Coal Min warns MSMDC about deallocation of Maha coal block

The Coal Ministry today warned Maharashtra State Mineral Development Corporation (MSMDC) that Warora coal block allocated to it would be cancelled if it fails to develop it in time.

"The allocattee is hereby warned... To develop the block immediately. In case of further failure... Necessary action will be inititated... Including de-allocation of the coal block," the Coal Ministry said in a letter to the Managing Director of MSMDC.

MSMDC's Warora coal block is in Maharashtra.

A couple of days back the government had warned two firms, including National Thermal power Corporation (NTPC), for delay in developing their coal blocks, saying that they would be deallocated if no immediate action is taken by the companies.

Power major NTPC had recieved the warnings regarding delay in development of two coal blocks each in Jharkhand and Chhattisgarh, and Utkal Coal Ltd for its asset in Orissa.

Besides, the ministry had last week warned Gondwana Ispat and Andhra Pradesh Development Corp regarding deallocation of coal assets for not developing them on time.

The government had last month said the panel set up by the ministry to look into the process of deallocation of coal blocks had recommended issuing warnings to 29 coal and three lignite blocks allocattees.

The panel had also suggested cancellation of 14 coal blocks and one lignite block to six PSUs, including NTPC and three private firms for failing to develop the mines.

This year, the government has deallocated coal blocks of various firms, including NTPC, Damodar Valley Corporation and Andhra Pradesh Power Generation Corporation Ltd.