Coal news and updates

Revised coal regulator Bill likely in Winter Session

October 30: The government may introduce a New Coal Regulatory Bill with more teeth in the Winter Session of Parliament after having made an enabling provision in a recent Ordinance for e-auction of captive coal blocks, an official source indicated.

The new Ordinance promulgated on October 21, 2014 has enabling provision for allowing commercial mining of coal from captive blocks by private companies.

“A coal regulator has to be there once commercial mining is allowed for private companies and a new Coal Regulatory Bill may be introduced by the government in the Winter Session,” the source said.

“The new and corrected Bill with more teeth may replace the existing one which was introduced by the previous government and which lapsed after dissolution of the 15th Lok Sabha,” the source added.

A new regulator with sufficient manpower has to be in place on the lines of the Directorate General of Hydrocarbons or Central Electricity Regulatory Commission (CERC) that can monitor activities in the coal industry, including illegal mining, the source felt.

Coal Minister Piyush Goyal had said in the Rajya Sabha on July 28 that after detailed consultations with various stake-holders as well as concerned ministries/departments, the proposal of draft the Coal Regulatory Authority Bill, 2013 was approved by the competent authority on June 27, 2013 and the same was introduced in the Lok Sabha on December 13, 2013 to regulate and conserve resources in the coal sector, protect the interest of consumers and producers of coal and for matters connected therewith.

“The Bill, introduced in the Lok Sabha, lapsed with the dissolution of the 15th Lok Sabha,” Goyal had said in a written reply.

As per the old Bill, the proposed functions of the Coal Regulatory Authority included
specifying the methods of testing for declaration of grades, monitoring and enforcing of mine closure plans, ensuring adherence to approved mining plans and specifying principles and methodologies for price determination of raw coal, washed coal and any other by-product generated during the process of coal washing.

Other functions included specifying of procedures for automatic coal sampling and weightage, specifying through regulations the standards of performance and norms of operational efficiency except in the areas related to mines safety; and adjudicating upon disputes between parties.

The Coal Regulatory Authority also had an advisory role in formulation of policies in the coal sector.