India's coal ministry has warned a group of six companies, including the local unit of the world's largest steel producer ArcelorMittal (MT.AE), to expedite work on developing a coal block jointly given to them, or face having the allocation cancelled.

The companies, which were jointly awarded the Rampia & Dip Side of Rampia coal block in the eastern state of Orissa in 2008, later formed a joint venture--Rampia Coal Mine and Energy Pvt. Ltd.--to develop the block, which has an estimated coal reserves of 650 million tons.

The joint venture also includes copper producer Sterlite Industries (India) Ltd. (500900.BY) and Reliance Energy Ltd., part of the Anil Dhirubhai Ambani-led Reliance group. Lanco Group Ltd., a unit of Lanco Infratech Ltd. (532778.BY), Navbharat Power Pvt. Ltd. and GMR Energy Ltd., a unit of GMR Infrastructure Ltd. (532754.BY), are the other members.

"It is seen that the company has repeatedly failed to keep its promises made to [the] ministry and is thus non-serious about [the] timely development of the block," the ministry said in a recent notice.

Executives at Rampia Coal Mine and Energy Pvt. Ltd. couldn't immediately be contacted for comment.

Spokespeople for ArcelorMittal India and Reliance Group declined to comment, while those for Vedanta Resources Group, Lanco Group and GMR Group didn't immediately reply to emails seeking comment. Navbharat Power couldn't be contacted for comments.

Separately, the ministry also warned MMTC Ltd. (513377.BY) over delays in the development of the Gomia coal block in eastern Jharkhand state.

A spokeswoman for state-run MMTC Ltd. didn't immediately comment on the warning notice.

-By Saurabh Chaturvedi; Dow Jones Newswires; +91-11-4356-3304; saurabh.chaturvedi@dowjones.com

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