A year after deciding to set up a regulator for the coal sector, the government has issued an executive order for setting up the “interim” watchdog, which would have no pricing powers and no say in allocation of captive mines. While a legislation — Coal Regulatory Authority Bill, 2013, — has been pending in the Lok Sabha ever since it was introduced on December 13 last year, the government has decided to set up a regulator for the coal sector. Although, the aim of setting up the watchdog is to bring in transparency in the sector, which is currently dogged by controversies in allocation of blocks, according to the order issued on March 4, the coal ministry has retained its final say over crucial issues. “.the government is satisfied that pending the enactment of a comprehensive legislation it is necessary to constitute and make operational an interim body till the proposed statutory authority is constituted,” according to the order. The watchdog has been empowered to formulate principles and methodologies for determination of pricing besides formulating policies for earmarking of captive blocks. It has been entrusted to promote investment and competition in the sector. A group of ministers had, in May last year, vetted the proposal for setting up a coal regulator. A senior coal ministry official said that pricing powers cannot be granted to the regulator as coal prices had been de-controlled in phases between 1996 and 2000 and de-nationalisation of the sector looks distant.
