Comments
The Union Cabinet is expected to discuss constitution of an independent regulator for coal sector today.
On May 29, the Group of Ministers (GoM), headed by Finance Minister P. Chidambaram, had gave its go-ahead for Coal Regulatory Bill, paving the first step for an independent authority to tackle issues of pricing, supply and quality.
As Parliament is not in session, the Cabinet may consider an Ordinance so that a Coal Regulator can be set up immediately. If this happens, the Bill will need to go before Parliament within six months.
On May 7, Chidambaram had said the proposed regulator would not have the power to set coal prices — the most contentious issue.
“Pricing must be left to the producer. The regulator will have powers to adjudicate on disputes related to price, quality, and supplies. All disputes will be adjudicated by the regulator. And then there will be an appellate authority,” Chidambaram had said.
After the last GoM meeting, Minister of State for Power (Independent Charge) Jyotiraditya M. Scindia said the Bill balances the interest of all stakeholders. “It protects the interest of all stakeholders and at the same time gives a very judicious balance to the regulatory authority to be able to supervise the supply and demand of coal in the country.”
Now, it is to be seen how the Government separates the powers between the proposed regulator and the Office of the Coal Controller. At present, powers such as approval for coal mining rests with the latter. The Coal Ministry has not yet decided on dismantling the Coal Controller. The proposed regulator is expected to have the authority to approve methods of testing, sample collection and weighing, among others.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.