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| Power sector, experts pitch for coal regulator to bring in transparency |
| Sanjay Jog / Mumbai Feb 05, 2012, 00:23 IST |
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Coal India's move to roll back price rise made effective from January 1 following opposition from coal consumers has triggered debate for the establishment of regulatory mechanism for the sector. Power generators and experts believe that the coal regulator was a need of the hour to bring about transparency in pricing.
Power Ministry official told Business Standard "The issue of establishment of a coal regulator did come up for discussion during the meeting between the Prime Minister and the industry CEOs held on January 18. The ministry strongly pitches for a regulatory mechanism for coal sector to be put in place at the earliest."
The official recalled that TL Sankar committee in 2007 had recommended the setting up a Coal Governance and Regulation Authority, which It should not be a mere regulating organisation, but a development and regulation organisation as in the case of re designed UK Institutions for gas and electricity.
Further, the official said the Integrated Energy Policy said a key responsibility of regulatory would be to make India a long term player in the highly liquid international market for coal that realizes long term trades under well tested indices such as Japan coal import index.
RV Shahi, former power secretary said " The functioning of energy sector is greatly affected. While the power sector has put in place not only the regulator but also appellate tribunal, the petroleum sector has half hearted regulator in which the upstream regulation is missing from jurisdiction from Petrolum & Natural Gas Regulatory Board (PNGRB). On the other hand, there is no regulator in the coal sector. Unless a transparent mechanism of price fixation is put in place in coal sector and government interference is eliminated, the coal sector in general and Coal India in particular will continue to be adversely affected leading in turn to the overall dissatisfaction among coal consumers mainly the power sector."
Ashok Khurana, director general, Association of Power Producers made a strong case for coal regulator. "Coal regulator is an imperative to bring about transparency in pricing, benchmarking of production and laying down procedural framework for moving from UHV to GCV mechanism."
Abhimanyu K Gupta, president, Indian Coal India Forum said a draft Bill for setting up of Coal Regulatory Authority was under finalization in consultation with the different ministries and departments. The proposed Coal Regulatory Authority would facilitate more standardized operational norms, establishment of bench marks in safety standards and performance, productivity through adoption of best mining practices, which would entail effective resolution of problems confronted by the coal miners. However, coal analysis needs to be carried out in a transparent manner in the presence of consumers, public representatives and mine workers," he added.
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