Power Minister Sushil Kumar Shinde on Thursday threatened action against companies that do not start work on captive mines within two years of allotment.

“At least within two years (of allotment of such blocks) you (companies) start action otherwise I am afraid to see that your coal block might be taken back by the government,” Mr. Shinde said during ICC Energy summit here.

“I appeal to those who have got coal blocks they should start work on mining at least within two year of allotment,” he added.

Asked about the status of captive coal block alloted to NTPC, citing the international benchmark (7 to 8 years) of mining from such blocks, he said that NTPC’s “mining target is not behind schedule“.

The comment of the Power Minister on de-allocation of captive coal blocks assumes significance as of power generation capacity addition programme under the 11th five year plan (2007-2012) is already running behind.

The government has last week asked states to expedite completion of power projects and said despite slippages, India would add at least 66,000 MW against the targeted 78,577 MW of generation capacity during the 11th five-year plan.