The Coal Ministry today cancelled Urtan North coal block allocated jointly to Jindal Steel and Power (JSPL) and Monnet Ispat & Energy Ltd for delays in the development of reserves. In another development, it issued a show-cause notice to Adani Power Ltd for not developing the coal mines allocated to the power producer. Both the actions came as a result of the recommendations made by the Inter Ministerial Group (IMG) on coal, which while directing the Coal Ministry to seek a show-cause notice from Adani Power Ltd for not developing the Lohara West and Lohara Extn (E) coal block, asked the ministry to deallocate the Urtan North coal block to Jindal Steel and Power (JSPL) and Monnet Ispat & Energy Ltd. The Urtan North coal block, located in Madhya Pradesh, was allocated to the companies in October 2009 to fire their sponge iron plants. The IMG had issued show-cause notices to the companies in June this year, seeking their explanation for the reason in delay for developing the coal block. The company representatives made a presentation in front of the IMG in October but failed to cut ice. “The recommendation of the IMG has been considered and approved by the government. It has been decided to de-allocate the block,” the ministry said in a letter sent to the two companies. The companies have so far invested Rs 11.6 crore in the block. However, additional investments of Rs 6,283 crore have been made by Monnet and Rs 3,416 crore by JSPL in the end-use projects.