The Government may set up the proposed Coal Regulator before the auctioning of mines takes off. This is intended to bring in transparency in the otherwise tainted sector.

“The Coal Ministry is seeking few legal clarifications from the Law Ministry on passing an executive order,” a Senior Government official told Business Line .

Earlier, the Pension Fund Regulatory and Development Authority (PFRDA) was set up under such an executive order.

The Government plans to hold the first round of auctioning in January. The Ministry aims to put in place a regulator before the mines go under hammer.

On June 27, the Cabinet has given its go-ahead for the Independent Coal Regulatory Bill. But, the Bill needs to be cleared by Parliament before it becomes a law. Since Parliament is not in session, the Government can issue an executive order for a Coal Regulator to be set up immediately. If, this happens, the Bill will need to go before Parliament within six months.

“The regulator is needed to ensure that Coal India does not continue its monopolistic practices. Once the mines are auctioned, the parameters should be market determined. The need to set up the regulator was felt long-time back,” said Ashok Khurana, Director-General of Association of Power Producers (APP), a lobby body representing about 20 private power developers.

Finance Minister P. Chidambaram had already clarified that the Coal Regulator would not have the power to set coal prices — the most contentious issue.

“Pricing must be left to the producer. The regulator will have powers to adjudicate on disputes related to price, quality, and supplies. All disputes will be adjudicated by the regulator. And then there will be an appellate authority,” Chidambaram had said.

>siddhartha.s@thehindu.co.in

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