The Hindu Business Line : Independent regulator for coal sector likely, says Jaiswal

NEW DELHI: With the entry of private sector in coal mining, the government is mulling setting up of a regulatory body to ensure a level playing field for new entrants in the sector.

“Appointment of an independent regulator for coal sector would result in more optimal development and conservation of coal resources, more effective regulation, adoption of best mining practices, rational pricing, better distribution and evolution of a m ore competitive market,'' the Coal Minister, Mr Sriprakash Jaiswal, said in a written reply in Lok Sabha.

He, however, did not specify any time frame for setting up such a body saying it involved enactment of legislation by Parliament.

In terms of Coal Mines (Nationalisation) Act, 1973, coal blocks can be allotted to private companies for captive use only like generation of power, production of iron and steel and cement.

As per the Working Group on Coal and Lignite set up by the Planning Commission, the total plan outlay proposed for Ministry of Coal for the 11th Five Year Plan is Rs 41,961 crore, he said. The proposed public sector investment for the 11th plan for supp orting their production plans is Rs 34,259 crore. - PTI

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