The government on Friday tabled a bill in the Parliament to set up a watchdog for the coal sector to promote fuels production and act an adjudicating body to mitigate disputes.
However,the proposed regulator would have no say in pricing the fuel or in allocation or cancellation of coal blocks.
Despite the intent in pushing for the legislation to curb the monopoly powers of state-run coal companies,the Coal Regulatory Authority Bill 2013 tabled in the Lok Sabha says the watchdog would be empowered to prescribe only the principles and methodologies for pricing coal rather than benchmarking them.
Stripping the watchdog of the powers to have a firm say in fixing of coal prices would also leave the demand of the power ministry unaddressed in which it had suggested the it should be equipped to curb profiteering tendencies of coal companies.
The regulatory body is envisaged as an adjudicating body that will mitigate disputes between the coal companies and their buyers.