GoM recommendation on coal regulator likely by next month: Sriprakash Jaiswal

KOLKATA: The Group of Ministers, headed by Finance Minister P Chidambaram, assigned to set up coal sector regulator may come up with its final recommendations soon after its meeting next month, Coal Minister Sriprakash Jaiswal has said.

"Within a month, the next meeting will be held under the chairmanship of P Chidambaram," Jaiswal told reporters last evening at the Coal India foundation day.

"I think in one or two meetings it (setting up of the coal regulator) would be decided," the minister said.

The Union Cabinet in May this year had discussed the proposal for a coal regulator and asked the GoMs, headed by Chidambaram, to make recommendations on its powers and functions.

The setting-up of an independent regulator for the coal sector is considered important for competitiveness of e-auction, fixing guidelines for price revision in supply pacts, fixing trading margins and increasing transparency in the allocation of reserves.

A coal regulator was recommended in the country's Integrated Energy Policy as well as by the TL Shankar Committee on coal sector reforms.

Somes states and stakeholders were also demanding setting -up of the coal regulator to induce greater transparency in coal block allocation and price fixing.