In June 1993, the government amended the Coal Mines Nationalisation Act of 1973 to allow captive mining by private sector power, cement and iron & steel companies to develop certain coal blocks.

Since then, 46 coal blocks with a total geological reserves of 20,000 million tonnes had been identified, and some leased to private companies. Later, coal washeries were also opened to the private sector.

Ray said most of them had failed to develop the coal blocks, as their projects -- that were to use the coal -- failed to get off the drawing boards. Hence the coal ministry is thinking of cancelling the leases already granted, Ray said. "What is the use of allowing them to continue the leasehold, when they can't develop the blocks which were handed over to them?" the minister asked. The fate of a proposed bill to further amend theCoal Mines Nationalisation Act, has also become uncertain.