Coal news and updates

Cabinet Decisions: Coal regulator gets nod after 7 years

Regulator would not have power to decide prices of coal in domestic market and CIL will continue to enjoy freedom in setting prices

The Union Cabinet on Thursday gave its go-ahead for setting up an independent coal regulator to infuse transparency and efficiency in the sector. The approval came after seven years, two Cabinet meetings and five sittings of a 12-member Group of Ministers (GoM) headed by Finance Minister P Chidambaram.

“The Cabinet Committee on Economic Affairs has given its nod to the proposal,” said a senior minister after it met on Thursday. The non-statutory regulator would be set up through an executive order, as the Coal Regulatory Authority (CRA) Bill, 2013, is still pending before Parliament.

The authority would determine methodology for coal price fixation, methods for testing and declaration of grades, specify procedures for coal sampling, and adjudicate upon disputes between parties and monitor mine closure plans.

“The government’s move will create an atmosphere in the country for a more disciplined use of coal,” Planning Commission member B K Chaturvedi told Business Standard. The regulator would not have the power to decide prices of coal in the domestic market and state-owned Coal India Ltd  will continue to enjoy freedom in setting prices. The regulator will have no say in the allocation of coal acreages, too.

Govt approves plan to create new forest cover  
The CCEA on Thursday approved a proposal of the Ministry of Environment and Forests to create new forest cover and improve the quality of existing forests with an expenditure of Rs 13,000 crore in the 12th five-year Plan.  

GlaxoSmithKline’s Rs 6,400 cr FDI proposal cleared
The government on Thursday cleared a Rs 6,400 crore foreign direct investment proposal of global healthcare company GlaxoSmithKline to acquire additional 24.33 per cent stake in its India arm.

Highway clearance
The government decided to convert 7,200 km of state roads into national highways. Also, the Cabinet decided to rename Ennore Port in Chennai as Kamarajar Port.

Hitachi’s acquisition of Prizm Payment Services gets nod
CCEA approved the proposal for acquisition of Prizm Payment Services by Japanese firm Hitachi, a move that would result in FDI of Rs 1,540 crore.     

Financial assistance of Rs 77.4 crore to HMT
CCEA announced a financial package of Rs 77.4 crore for state-run Hindustan Machine Tools Ltd (HMT) and its subsidiary, HMT Machine Tools, to make payments of salary, wages and statutory dues such as provident fund and gratuity to employees.

EOC for minorities
Proposal for setting up the much-awaited Equal Opportunities Commission, a statutory body to check discrimination of minority communities in jobs and education got the Cabinet’s approval.

Source: Business Standard