Show-cause notices soon to allottee of 7 mines

The Coal Ministry is likely to issue show-cause notices soon to allottees of seven mines, including ArcelorMittal, Sterlite Energy, Lanco and Reliance Energy which were jointly given one block, for not developing them on time, sources said.

The Inter-Ministerial Group (IMG) on coal blocks had earlier recommended issuing show-cause notices to the mines which was accepted by the Coal Ministry.

Rampia Rampia & Dip Side of Rampia block jointly alloted to Sterlite Energy, GMR Energy, ArcelorMittal, Lanco Group, Navbharat Power and Reliance Energy, is among the seven coal mines which would be issued show cause notices, the source said.

"In cases of seven coal blocks, where an FIR has been registered by CBI against the allocatee or one of the allocatees of the coal block, the coal ministry will soon issue show-cause notices for delaying the production," the source said.

The IMG had earlier asked the Coal Ministry to seek an opinion of the Law Ministry with regard to mines named in FIR registered by CBI.

The CBI is probing alleged irregularities in the allocation of 192 coal blocks between 1993 and 2011.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including deallocation.