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 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 told The Financial Express.

"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 aproposed bill to further amend the Coal Mines Nationalisation Act, which would have paved the way for full private mining, has also become uncertain.

Coal secretary S Narayan said the Bill is ready to be tabled in Parliament. But the minister made it clear that the Bill will not be placed before the parliament during the current session. He could not even say for certain if the Bill will be tabled during the winter session. "I have no idea," Ray said. Ray said the planning commission is reviewing the present situation and the demand-supply position.