A Group of Ministers, GoM on 29 May 2013 approved the Coal Regulatory Authority Bill which seeks to set up an independent regulatory authority for the coal sector in order to address the issues such as quality, supply and pricing. The draft Coal Regulatory Authority Bill will now be sent to the Cabinet latest by 9 June 2013 for the approval.
Major Features of the Coal Regulatory Authority Bill
• The Coal Regulatory Authority Bill is aimed at addressing the issues of coal sector such as quality, supply and pricing.
• Also, the bill will balance the interest of all stake holders.
• It will also facilitate the judicious balance for Regulatory Authority in order to supervise supply as well as demand of coal sector in India.
The GoM achieved closure on the pass through mechanism structure. The pass through mechanism means implies that the price charged from the electricity distribution companies will soak in the increasing cost instead of cross-subsiding by accumulation of or absorption by the power-generating companies.
Earlier in May 2013, the GoM had decided that the fuel rates will not be determined by the proposed regulator, but the producers only. However, the regulator would have the power to resolve the disputes which result because of fuel supply agreements (FSAs).
The Group of Ministers that approved the Coal Regulatory Authority Bill included Coal Minister Sriprakash Jaiswal, Planning Commission Deputy Chairman Montek Singh Ahluwalia and Environment Minister Jayanthi Natarajan.