Coal Minister Sriprakash Jaiswal and Minister of State (Independent Charge) for Power Jyotiraditya Madhavrao Scindia continue to hold different views when it comes to offer pricing power to the proposed coal regulator.

The Group of Ministers (GoM) headed by Finance Minister P. Chidambaram is likely to meet on May 7 to deliberate on the new draft for independent regulatory authority for the coal sector.

The GoM, which has held several rounds of meeting since July last year, is expected to arrive at a consensus on Tuesday.

The Power Minister wants the regulator to “determine the price of raw coal and washed coal and any other by-product generated during the process of coal washing’’.

Independent regulator

However, looking at the recent dispute between two Maharatna public sector giants, NTPC and Coal India, over quality and pricing of coal, an independent regulator to decide on these issues seems necessary.

But, the Coal Minister is opposed to such a proposal. This is mainly because the nodal Ministry does not want the pricing power to let go from its umbrella, said Government officials privy to the development.

In addition, the Coal Ministry wants to keep with itself the power to grant permission for opening a coal mine or cancelling it. Also, the regulator would not overlook the laws administered by the Ministry of Labour, Mines, and Environment and Forests.

The GoM had said that the regulatory authority should have the provision to counter the methods and practices followed by the monopolistic producer (Coal India Ltd). There were also repeated complaints by buyers.

Therefore, the Coal Ministry has decided to empower the regulator with the authority to approve the methods of testing, sample collection and weighing.

>siddhartha.s@thehindu.co.in

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