‘Coal regulator to oversee only pricing issues’

PRIYADARSHI SIDDHANTA
Tuesday, Jun 26, 2012
Financial Express
New Delhi: The coal ministry has expressed urgency in setting up a regulator for the coal sector. The ministry has told a Group of Minister (GoM) that the time is ripe for a watchdog in the sector that is bogged down by monopoly, and in view of the recommendations by the Planing Commission’s Integrated Energy policy and TL Shankar Committee, “there is a strong case for setting up of the watchdog”.

The coal ministry has suggested that the proposed regulator should be mandated to oversee only the pricing issues of the fuel and ensure total implementation of the policies, while the Centre should be allowed to discharge its sovereign functions.

In the Draft Independent Coal Regulatory Authority Bill, the ministry has said the regulator should have a firm say in allocation of coal blocks and ensure strict enforcement of mining regulations, but maintained that the relationship between the two should be that of “between the independent statutory authority and the government.”

In its note to the GoM on coal regulator headed by home minister P Chidambaram on June 15, the coal ministry said under the proposed dispensation the central government would be the policy maker and the regulatory authority would monitor the implementation of various policy issues.

“National interest demands that the proposed Bill be introduced in the Parliament without any further delay as the same is having a bearing effect on other related sectors like power, steel, railways and cement. A regulator is expected to create a level playing field for the new entrants in the coal sector,” according to the note.

It argued that the key responsibilities of the states and the Centre will be all policies and directives, investigation and inventorisation of coal reserves, allocation of coal blocks, granting mining concessions and approving royalties and levies.