Coal news and updates

Govt notifies formation of Coal Regulatory Authority

March 26: The Ministry of Coal on March 26 informed that the Government of India has notified setting up of the Coal Regulatory Authority (CRA) via a gazette notification dated March 4, 2014.

The notification will pave the way for setting up the CRA, which will have no power related to fixation of prices of coal mined by Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL), but will advise the government on the formulation of the principles and methodologies for determining the price of raw coal, washed coal and any other by-product generated during the process of coal washing, as per an official coal ministry release.

As per the notification, the body (CRA), will consist of a Chairman and four members (legal, technical, finance and consumer interest), all to be appointed by the central government.

The CRA shall designate one of the above as Member (Administration) who shall exercise such financial and administrative powers vested in him. The CRA's seat will be in the National Capital Region (NCR).

It will also advise on the procedure for automatic coal sampling and weighment, on standards of performance of norms and operational efficiencies except in the area related to mines safety.

It will also advise on formulation of policies in the coal sector, including allotment or earmarking of coal blocks for any purpose through any mode and coal linkage. The other areas of advice will include promotion of competition and investments in the coal industry as well as efficiency and economy in activities, development of various mining technologies, beneficiation methods and conservation of coal resources.

The chairperson of the CRA must have knowledge of not less than 15 years in dealing with problems relating to mining, law, economics, commerce, finance, management or public administration and must not be below the rank of Secretary to the Government of India.