Coal news and updates

Cabinet may take up coal regulator proposal today

A group of ministers had, in May, last year vetted the proposal for setting up a coal regulator.

The Union Cabinet is likely to consider a proposal to set up a regulator for the coal sector, which would not have statutory powers and would have no firm say in pricing of the fuel or in allocation or cancellation of coal blocks.

After prolonged inter-ministerial consultations, spanning over two years, the coal ministry has finally sought Cabinet approval recently for setting up the regulator through an executive order.

Although, the aim of setting up the watchdog is to bring in transparency in the coal sector, which is currently dogged by controversies in allocation of coal blocks, but according to the proposal the ministry has retained its final say over crucial issues.

Considering that the regulatory mechanism would have non-statutory powers, the law ministry has advised that legislative and judicial powers cannot be conferred on such an authority set up by an executive order.

A group of ministers had, in May, last year vetted the proposal for setting up a coal regulator. While the original plan was to have an independent watchdog, the government could not see it through despite the Coal Regulatory Authority Bill, 2013, being introduced in the Lok Sabha in December 2013.

If the proposed regulator does not have a firm say in fixing of coal prices, it would also leave the demand of the power ministry unaddressed as it had earlier suggested the watchdog be equipped with powers to curb “profiteering” tendencies of coal companies.

Source: The Finacial Express