Cabinet approves setting up of independent regulatory body for coal sector

The Union Cabinet has approved the setting up of a Coal Regulatory Authority to address contentious issues like supply and quality.

Addressing media here, Finance Minister P Chidambaram said the authority would be empowered to specify methodology for determining coal prices.

"The cabinet approved the Coal Regulatory Authority bill, an independent regulatory body for the coal sector, which help in regulation and conservation of the coal resources and will benefits all stakeholders, including coal companies, coal consuming industries, coal barring states as well as people directly or indirectly associated with coal industries," he added.

"The bill will be introduced in Parliament. It will be passed as early as possible," he said.

Pending passage of the Bill will propose to set up by an executive order," he added.

The draft bill on Coal Regulatory Authority Bill, 2013 was submitted to the Cabinet for consideration on May 10, 2012.

The panel decided to refer it to a Group of Ministers to sort out issues related to the powers of the proposed regulator.