Coal may finally get a regulator
The move, mentioned in the Budget, is being seen as a precursor to opening the controlled coal market. Proposals for a coal regulator have been floating for the last few years without any results.
By Subhash Narayan, TNN |
NEW DELHI: The government has set the ball rolling for the establishment of an independent coal regulator, a move that is being seen as a precursor to opening the controlled coal market.
Presenting the Budget proposals for 2008-09, the finance minister made an emphatic statement that an independent watchdog may soon oversee the activities in the coal sector. He, however, stopped short of opening up the sector for commercial mining by the private sector, a step recommended by the Economic Survey 2007-08.
���Fifty-three coal blocks with reserves of 13,842 million tonnes have been allotted during April-January 2007-08 to government and private sector companies. A new coal distribution policy was notified in October 2007. A coal regulator will be appointed,��� the finance minister said in his Budget speech.
The announcement assumes importance as proposals on a coal regulator have been floating for the last several years without any concrete results.
Recently, the Central Electricity Authority suggested the CERC should be vested with additional powers to regulate the coal sector rather than putting in place a separate coal regulator.
Even within the coal ministry, views have been expressed that a regulator will be important once the sector is thrown open to private players.
Meanwhile, the coal ministry is finalising Coal Governance and Regulation Authority Bill that will establish the office of the new regulator responsible overseeing issues pertaining to pricing and supply of coal.
The bill is being finalised on the basis of a report prepared by Administrative Staff College of India.
Presenting the Budget proposals for 2008-09, the finance minister made an emphatic statement that an independent watchdog may soon oversee the activities in the coal sector. He, however, stopped short of opening up the sector for commercial mining by the private sector, a step recommended by the Economic Survey 2007-08.
���Fifty-three coal blocks with reserves of 13,842 million tonnes have been allotted during April-January 2007-08 to government and private sector companies. A new coal distribution policy was notified in October 2007. A coal regulator will be appointed,��� the finance minister said in his Budget speech.
The announcement assumes importance as proposals on a coal regulator have been floating for the last several years without any concrete results.
Recently, the Central Electricity Authority suggested the CERC should be vested with additional powers to regulate the coal sector rather than putting in place a separate coal regulator.
Even within the coal ministry, views have been expressed that a regulator will be important once the sector is thrown open to private players.
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Meanwhile, the coal ministry is finalising Coal Governance and Regulation Authority Bill that will establish the office of the new regulator responsible overseeing issues pertaining to pricing and supply of coal.
The bill is being finalised on the basis of a report prepared by Administrative Staff College of India.
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