Cabinet nod for coal regulator inspiring: PHD Chamber

The union cabinet nod for setting up an independent coal regulator in the coal sector is inspiring. The decision has come as a step to infuse transparency and efficiency in the coal sector as it will revive the corporate investments and refuel the economic growth. Coal Regulator would help in streamlining the authoritarian framework of the sector, said Mr. Sharad Jaipuria, President, PHD Chamber.

Coal is the most important and abundant fossil fuel of our country accounts for about 55% of the country's energy need. Our country is importing from international market to meet the demand deficit and various project proposals like PPP in the sector are not implementing at speedy rate, hence the authority would assist in attracting private investments and offer a competitive level playing field, said Mr. Jaipuria

 

However, the regulator would not have the power to decide prices of coal in the domestic market and state-owned Coal India Ltd (CIL) will continue to enjoy freedom in setting prices. Further, the regulator will have no say in the allocation of coal acreages. The pricing power too was taken away from the regulator based on the argument that coal prices were decontrolled in stages between 1996 and 2000 and de-nationalization of the sector is not envisaged, he said

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