India’s coal ministry announced these companies would need to give valid reasons for not mining if they were to keep their licences.

"We might cancel the licences of these companies if we find that they have not taken adequate measures to initiate mining on these areas," India’s central minister of coal told Business Standard at the Mining Industry’s International Conference held recently.

The ministry plans to reallocate confiscated mining leases to new companies eager to undertake mining.

Business Standard said there were up to 10 companies who held licences but had not initiated mining and who would have to provide a time frame as to when they would be able to start work.