GoM on coal regulator may meet next week

A group of ministers headed by Finance Minister P Chidambaram may meet on January 21 to discuss the draft coal regulator bill, which seeks setting up of a regulatory authority for the coal sector.

"It (GoM on coal regulator) may meet on January 21," Coal Minister Sriprakash Jaiswal told reporters on the sidelines of a conference here.

The meeting of the GoM was postponed twice before -- first on December 18 and second on January 4 -- due to unavailability of some ministers.

The Cabinet had referred the draft bill for setting up a regulatory authority for the coal sector to the ministerial panel.

The Coal Minister, in November, had said that GoM assigned to set up coal sector regulator may come up with its final recommendations soon.

In May, the Union Cabinet had discussed the proposal for a coal sector regulator and asked the GoM to make recommendations on its powers and functions.

The setting up of an independent regulator for the coal sector is considered crucial for improving competitiveness in e-auctions, fixing guidelines for price revision in supply pacts, setting 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 T L Shankar Committee on coal sector reforms.

A few states and other stakeholders have also been demanding setting-up of the coal regulator.