Coal ministry to set up committee to resolve allocation issues

The government today said it will constitute an inter-ministerial committee within a week that will help resolve various issues raised by private companies on coal allocation.

“There are number of issues which need to be addressed. We have got a feedback from the private sector with regards to linkages for the captive coal blocks or the ones which are facing environmental clearance issues,” Coal secretary S.K. Srivastava told reporters here.

“We have decided to set up an inter-ministerial committee which will look into these issues. It will come up with policy resolutions, which we may further take to CCI (Cabinet Committee on Investment),” Srivastava said.

The group will be constituted within a week and it is expected to address the issues in about a month, he said. On the coal block auction, Srivastava said: “We are moving ahead. There are certain issues, specially with regard to the floor price. We have a meeting with the finance ministry tomorrow and we will discuss how the pricing for the power sector will be done.” Besides, he said, the ministry is trying its best to introduce
the Coal Regulatory Authority Bill in the upcoming Budget Session of Parliament.

The setting up of an independent regulator for the coal sector is considered crucial for improving competitiveness in e-auctions, fixing guidelines for price revision in supply pacts, setting trading margins and increasing transparency in the allocation of reserves.

A coal regulator was recommended in the Integrated Energy Policy as well as by the T.L. Shankar Committee on coal sector reforms.

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