Indian Government is planning to set up an independent regulator for the coal sector in order to avoid Coalgate like Scams in future.
In a written reply in the Lok Sabha, Minister of State for Coal Pratik Prakashbapu Patil said that the proposed regulator would ensure more optimal development and conservation of coal resources, rational pricing and better distribution of coal, evolution of a more competitive market and a level playing field for new entrants in the sector.
Union Coal Minister Sriprakash Jaiswal last month said that the group of ministers (GoM) deliberating the appointment of a coal regulator is likely to give its final recommendations soon.
The union cabinet in May 2012 asked the GoM, headed by Finance Minister P. Chidambaram, to make recommendations about the proposed coal regulator’s powers and functions.
Independent regulation of 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 allocation of reserves.
A coal regulator was recommended in the Integrated Energy Policy as well as by the T.L. Shankar Committee on the coal sector reforms.