Monitoring coal containing areas serves to push firms that failed to utilize the blocks allocated to them, reported Business Standard.

An official Memorandum from the government stated, "The concerned State Government shall institute a mechanism, including regular physical inspections, to ensure regular monitoring of development of the coal blocks as per the milestones and submit quarterly reports to the Ministry of Coal or an agency authorised by it."

According to the memorandum, these mechanisms are exclusive of any monitoring or inspection from Ministry of Coal or its authorized agencies.

The memorandum also outlines the terms and conditions for coal block allocation to government companies for mining and other specified applications.

Officials reported that only 30 mines are currently producing coal as opposed to 218 captive coal blocks allocated to various public and private sector companies.

Recently, the Inter-Ministerial Group has recommended deallocation and deduction of bank guarantee for several coal blocks found to be idle.