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    General Knowledge Today

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    Karthik Krishnamaneni
    The document discusses a proposed Independent Coal Regulatory Authority Bill in India. It notes that India has large coal reserves but no independent coal regulator. The bill would establish a Coal Regulatory Authority as an independent regulator for the coal sector. The regulator would be comprised of a chairperson and four members from different backgrounds. It would have powers to determine coal prices, set performance standards, monitor companies, and advise the government on coal policy. However, some criticize that giving the regulator pricing powers could take the country back to an era of centralized control over the economy.

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    General Knowledge Today

    Uploaded by

    Karthik Krishnamaneni
    12 views2 pages
    The document discusses a proposed Independent Coal Regulatory Authority Bill in India. It notes that India has large coal reserves but no independent coal regulator. The bill would establish a Coal Regulatory Authority as an independent regulator for the coal sector. The regulator would be comprised of a chairperson and four members from different backgrounds. It would have powers to determine coal prices, set performance standards, monitor companies, and advise the government on coal policy. However, some criticize that giving the regulator pricing powers could take the country back to an era of centralized control over the economy.

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    The document discusses a proposed Independent Coal Regulatory Authority Bill in India. It notes that India has large coal reserves but no independent coal regulator. The bill would establish a Coal Regulatory Authority as an independent regulator for the coal sector. The regulator would be comprised of a chairperson and four members from different backgrounds. It would have powers to determine coal prices, set performance standards, monitor companies, and advise the government on coal policy. However, some criticize that giving the regulator pricing powers could take the country back to an era of centralized control over the economy.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12 views2 pages

    General Knowledge Today

    Uploaded by

    Karthik Krishnamaneni
    The document discusses a proposed Independent Coal Regulatory Authority Bill in India. It notes that India has large coal reserves but no independent coal regulator. The bill would establish a Coal Regulatory Authority as an independent regulator for the coal sector. The regulator would be comprised of a chairperson and four members from different backgrounds. It would have powers to determine coal prices, set performance standards, monitor companies, and advise the government on coal policy. However, some criticize that giving the regulator pricing powers could take the country back to an era of centralized control over the economy.

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    Articles from General Knowledge Today

    Independent Coal Regulatory Authority Bill, 2012


    2013- 03- 08 12:03:40 GKToday
    Introduction
    India has the fourth-largest coal reserves in the world. There are huge power
    expansions plans which need to be fuelled by coal. However, there has been no
    coal regulator. The idea of a Coal Regulatory Authority was mooted in 2008,
    but it could be established for unknown reasons.
    Background:
    Setting up a regulator for monitoring coal resource development was first
    recommended by the Integrated Energy Policy (IEP) framed by former
    Planning Commission member Kirit Parikh and the T L Shankar Committee on
    coal sector reforms.
    The Energy Coordination Committee, headed by Prime Minister Manmohan
    Singh, had then asked the Planning Commission to prepare a paper on the
    issue. However, so far, the Coal Regulatory Authority could not see the light
    of the day.
    Introduction to Bill
    After the recent Comptroller and Auditor General's (CAG) observations on the coal
    sector and the Coalgate controversy, the Government has now come up with a
    draft Independent Coal Regulatory Authority Bill, 2012 to establish an independent
    regulator for the coal sector that will have a firm say in allocation of blocks and
    ensure strict enforcement of mining regulations.
    The Government says that the independent regulator was needed considering the
    near-monopoly the producers in the coal industry enjoy and the fact that regulation
    was currently done by agencies closely associated with the government as well as
    the same producers.
    Salient Features
    1. The proposed Bill seeks providing a level-playing field to all stakeholders and
    promoting investment in the sector.
    2. Coal Regulatory Authority would comprise a chairperson and four members,
    one each for the legal, technical, finance and administration wings. The
    chairperson and the members would be appointed by a selection committee
    headed by the cabinet secretary.
    3. The bill seeks to empower the proposed regulator to decide the fuel's prices
    and to suspend or cancel authorisations of errant coal producers.
    4. The authority would also specify standards of performance and operational
    norms for coal companies and monitor the same.
    5. The proposed authority would determine the price of raw coal, washed coal
    and by-products.
    6. The authority would advise the Centre on formulation of the policies.
    7. coal ministry's role would be largely defined by the regulator and it would try
    and adhere to the advice extended by the regulatory mechanism
    8. Centre's role would be restricted to policy-making while the regulator would
    ensure implementation of the policy.
    9. The regulator's functions would include specifying the quality and
    performance parameters, ensuring adherence to the mining plan, recovering
    penalties, monitoring the utilisation of funds for coal conservation and
    promoting clean coal technologies.
    10. To ensure independent functioning of the regulator, a Coal Regulatory
    Authority Fund has also been proposed. All grants, fees and charges received
    by the Authority under this Act and all sums received by the Authority shall
    be credited to this fund.
    Major Issue: Pricing Power of the Regulator
    In India, the prices of coal currently being realised at e-auctions, the majority of
    which is supplied by CIL, are about 80 per cent higher than the notified price.
    However, as per the bill, the proposed authority will have pricing power. In a recent
    GoM meeting it was said that there is no commercial mining in India by companies
    other than (state-run) Coal India Ltd. Coal India decides price of the fuel without any
    formal directive from the coal ministry, but the government has a say because it
    holds majority equity. Some ministries have said that the bill would take the
    country back to the pre-1991 era of licence raj and there must be a difference
    between regulation and licensing.

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