The Union Coal Ministry has warned companies which are sitting idle with coal and lignite blocks that have been allotted to them to start work early or face cancellation of their contracts. As many as seven companies have been warned for delaying mining which was having an adverse impact on generation of power. “The allocatee(s) is (are) hereby warned and directed to develop the block(s) immediately. Any further failure in development of the block(s) would lead to necessary actions as per the terms and conditions of allocation, including de-allocation,” the Coal Ministry said in its letter to these companies. The companies that have been sent warning letters include the Assam Mineral Development Corporation, the Meghalaya Mineral Development Corporation, the Tamil Nadu Electricity Board and the Orissa Mining Corporation. Similarly, the Binani Cement Ltd and the NSL Nagapatnam Power and Infratech have also been warned for inordinate delays in development of blocks allotted to them. Last month, the government had warned various other firms, including NTPC, Maharashtra State Mineral Development Corporation, Utkal Coal Ltd, Gondwana Ispat and Andhra Pradesh Development Corp, for not developing their blocks on time. In May this year, 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 and three lignite blocks allotees. The panel had also suggested the 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 already de-allocated coal blocks held by various firms.