Government will issue an executive order for setting up a coal regulator aimed at regulating and preserving the dry fuel, Finance Minister P Chidambaram said on Friday.
The Coal Regulatory Authority Bill, 2013, needs Parliamentary approval and is to be introduced in the next session, Chidambaram told reporters.
"Pending the passage of the bill, we propose to set up the authority by an executive order.
"There are precedents for that.
“The PFRDA was set up by an executive order. “It is still under an executive order.
“Securities and Exchange Board of India was first set up by an executive order then it became a statutory body," he said.
The Cabinet last evening approved the setting up of the regulator for coal sector, Chidambaram said, adding the Coal Regulatory Authority Bill 2013 would be introduced in the forthcoming session of Parliament.
"Since the need for coal regulator is imperative, we will set it up initially through an executive order and we hope that the bill can be
"Coal block allotment is not within the purview of the Coal Authority, that the Cabinet has already decided. . .," he said, adding the authority would protect interest of all stakeholders.
"It will specify the priniciples and methodology of price determination . . . any dispute between one stakeholders and other stakeholder will be adjudicated by the authority," the minister added.
Meanwhile, an official statement said: "The setting up of an independent regulatory body for the coal sector shall help in the regulation and conservation of coal resources.
"It will benefit all stakeholders; that is coal companies, coal consuming industries such as power, steel and cement and coal bearing States and people, directly or indirectly associated with the coal industry."
A fund called ‘The Coal Regulatory Authority Fund’ would be created and all grants, fee and charges received by the Authority shall be credited to this fund.
"After passing of the Bill, details would be worked out and submitted to the Government for appropriate financial sanction for the initial start-up funding," it said.
