The Union Cabinet headed by Prime Minister Manmohan Singh on Thursday gave its go-ahead for the setting up of an independent regulator for the coal sector, a Government official said.
The Coal Regulatory Authority Bill, 2013 would now be placed before Parliament before it becomes a law.
The draft bill on Coal Regulatory Authority Bill, 2013 was submitted to the Cabinet for consideration on May 10, 2012. The panel decided to refer it to a Group of Ministers to sort out issues related to the powers of the proposed regulator.
On May 29, the Group of Ministers (GoM), headed by Finance Minister P. Chidambaram, gave its go-ahead for the Bill, taking the first step for an independent authority to tackle issues of pricing, supply and quality.
On May 7, Chidambaram had said the proposed regulator would not have the power to set coal prices – the most contentious issue. 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.