New Delhi: The Central Government has issued warning to seven more firms, including ArcelorMittal, GVK Power and Bhushan Power and Steel, to begin the development of coal and lignite blocks allocated to them without further delay, failing which their coal blocks would be cancelled.

"The allottee is hereby warned and directed to develop the block without any delay. Any further failure in development of the block would lead to necessary action as per the terms and conditions of allocation, including de-allocation of the coal block," the letter issued to Arcelor Mittal and GVK Power said.

Steel maker Arcelor Mittal India Ltd and GVK Power (Govindwal Sahib) Ltd were warned for inordinate delay in developing Seregarha coal block, jointly allocated to them to meet the coal requirements for their captive power plants.

Bhushan Power & Steel Ltd was warned for Jamkhani coal block allocated to it in 2003, to meet the coal requirement of its sponge iron and captive power plants.

In addition, DCM Shriram Consolidated Ltd was warned for delaying the development of Kaparion-Ki-Dhani lignite block and V S Lignite Power Private Ltd for Lunsara lignite block.

Other firms which were warned include Mideast Integrated Steels Ltd and West Bengal Power Development Corporation Ltd.

A few days back the Coal Ministry had issued warnings to seven other firms, asking them to either develop the blocks or get them cancelled.

In May, the Coal Ministry said a panel set up by it to look into the process of de-allocation of coal blocks had recommended issuing warnings to 29 coal blocks and three lignite blocks allottees.

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

This year, the Government has de-allocated coal blocks held by various firms, including NTPC, Damodar Valley Corporation and Andhra Pradesh Power Generation Corporation Ltd.

(Agencies)