Coal ministry has issued show cause notices Jindal Steel & Power Ltd (JSPL), Jindal Photo, Monnet Ispat and Tata Power over their failure to develop coal blocks allotted to them in the stipulated time.

The ministry said in a statement that the companies made no significant progress towards development of Mandakini and Ramachandi Promotion CTL coal blocks.

The recommendation for issuing show cause notice for delay in the development of the coal bocks was made by Inter-Ministerial Group (IMG).

In the statement, the ministry said, "Keeping the unsatisfactory progress coal block, Inter-Ministerial Group recommended issuing show cause notice for delay in development of the coal bock.  The recommendation of IMG has since been considered and accepted by the government."

While Mandakini coal block was allocated to Jindal Photo, Monnet Ispat and Tata Power; Ramachandi coal block was awarded to JSPL in February 2009 for a coal-to-liquid project.

When contacted, JSPL claimed that it was in advanced talks with three American and European for its $10-billion coal-to-liquid project.  It added that it was seeking various regulatory clearances to develop the Ramchandi coal block.

The Coal Ministry has asked the companies to reply to the notices within twenty days, failing which they may face de-allocation of the blocks.