The Union Coal Ministry has warned ArcelorMittal and GVK Power that the allotment of joint coal block at Seregarha in Jharkhand would be cancelled for the inordinate delay in carrying out developmental work at the property.

Officials in the Ministry said a show cause had been served on September 23 to both the companies and replies have been sought within 15 days asking for reasons for the delay in developing the mines allotted for captive use.

The Ministry said exploration had not begun as yet whereas it should have been completed by now as per the time schedule for development of the block. The Coal Ministry asked the companies to reply within a fixed time frame failing which it will be presumed that your company had no explanation to furnish and action as appropriate would be taken against your company for de-allocation of the Seregarha coal block.

ArcelorMittal was alloted the Seregarha block in Jharkhand to meet the coal requirement for its 750-MW captive power plant at Sariakela in Jharkhand with GVK Power.

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