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Coal Minister Sriprakash Jaiswal said an IMG has been set up to examine the pros and cons and based on its report any number of allocations can be cancelled.
He said the IMG will give its report by September 15.
"Right now, no allocations are being cancelled. On the basis of the IMG report, the allocations which were made in a wrongful manner or those allottees who have failed to start production of coal in a time-bound manner may face action. Any number of coal blocks can be cancelled," Jaiswal told reporters in Kanpur.
Coal Ministry officials said the IMG will meet tomorrow to review the status of 58 coal blocks which both public and private firms failed to develop within stipulated time frame.
The government has already issued de-allocation notices to 33 government firms and 25 private entities in this regard.
The IMG meeting is taking place in the backdrop of stepped up pressure on the government to cancel 142 allocations which are under the scanner after the CAG report.
Leader of the Opposition Sushma Swaraj said in Mumbai that there was no going back on the BJP demand for resignation of Prime Minister Manmohan Singh, who, she said, was directly responsible for the controversial allocations.
A top Coal Ministry official had earlier said the blocks, barring a few, were different from those mentioned in the CAG report.
