The government has given back to Damodar Valley Corporation and Jharkhand State Electricity Board two coal mines that were deallocated after the PSUs had failed to develop them.

The move follows NTPC's getting back three deallocated mines after the approval from the Law Ministry.

DVC's Shaharpur Jamarpani and JSEB's Banhardih coal mines, both in Jharkhand, were forfeited by the Coal Ministry in 2011 as the two companies failed to produce from them within the stipulated timeframe.

"It has...Been decided to withdraw the deallocation of Saharpur Jamarpani coal block... This is subject to DVC developing the block as per the revised schedule of exploitation," the Coal Ministry said in a letter to the PSU.

In another letter to JSEB, the ministry said it has, "been decided to withdraw the deallocation of Banhardih coal block".

The letters to DVC and JSEB further said that the Coal Ministry has last year conveyed the "in-principle" decision of the withdrawal of both the mines.

The letters also said: "The commencement of Amendment to Mines and Mineral (Development & Regulation) Act, 1957 as well as Auction by Competitive bidding of Coal Mines Rules, 2012 have been notified in February, 2012.

"As the rules above were notified before the formal withdrawal of deallocation letter, a reference was made to Ministry of Law and Justice."

It has advised that the proposed action is not in contravention of Act/Rules and that "upon the withdrawal of deallocation in principle, status quo ante as prior to June, 14 2011 with respect to the concerned coal blocks stood restored", the letter added.