Government ready with Plan B if Supreme Court cancels coal blocks

NEW DELHI: The government is preparing a backup plan to feed imported coal to power plants after pooling its price with domestic coal in case the Supreme Court decides to cancel captive coal blocks at its hearing on September 9.

The power ministry has quickly altered a note for consideration of the Union cabinet to accommodate a proposal to supply imported coal to power plants linked to captive coal mines that are delayed or de-allocated, consequent to the Supreme Court ruling.

"State-run Coal India will work out the commercial arrangement for the import of coal and supply of domestic and imported coal under price-pooling arrangement," a senior official said.

The Supreme Court in its verdict on August 25 pronounced all coal block allocations since 1993 illegal. The apex court is yet to pronounce the fate of the captive coal blocks.