Web Exclusive | June 2013
CCEA clears coal regulatory authority bill
The Cabinet Committee on Economic Affairs (CCEA) approved the Coal Regulatory Authority Bill, 2013, which envisages setting up of an independent regulator for the sector.
Following the approval, the draft legislation would be tabled before Parliament for approval in the coming monsoon session.
On May 29, a Group of Ministers cleared a draft Bill to set up an independent coal regulator after rounds of meeting.
The proposed regulator will frame rules and methodologies for determining the price, although it may not fix the price directly.
The regulator may have power to draft rules and methodologies for sampling coal quality as well. That means CIL will have to benchmark its operational efficiency against regulatory benchmarks to fully pass on mining costs to consumers. The regulator will have the mandate to settle disputes between coal suppliers and consumers.
The coal ministry has not yet decided on dismantling the Coal Controller. The proposed regulator is expected to have the authority to approve methods of testing, sample collection and weighing, among others.