New Delhi, June 26
Contentious issues such as pricing of coal, its supply and quality may be a thing of the past as the Union Cabinet, at its meeting tomorrow, may accord approval for the setting up of a coal regulatory authority, the contours of which were cleared by a Group of Ministers (GoM) last month.

Official sources said the draft Bill for the setting up of the authority might be placed before the Union Cabinet for approval tomorrow. It would need to go to Parliament for clearance before the body could come into existence.

As Parliament was not in session, the Cabinet might consider an Ordinance so that a Coal Regulator could become a reality immediately. If that happened, the Bill would then need to go to Parliament within six months.

The draft Bill has been prepared based on the recommendations of various committees and expert groups. Settling the issue of fixing coal prices, the GoM had earlier decided that the proposed regulator would not determine fuel rates, a job that would continue to be vested with the producers.

On May 7, Chidambaram (head of the GoM) said the proposed regulator would not have the power to set coal prices-the most contentious issue and one that went against the wishes of the Power Ministry. The Coal Ministry was of the view that coal pricing had already been de-regulated.

“Pricing must be left to the producer. The regulator will have powers to adjudicate on disputes related to price, quality and supplies. All disputes will be adjudicated by the regulator. And then there will be an appellate authority,” Chidambaram had said then.

The regulator will be empowered to specify the principles and methodology for determination of price of raw coal and washed coal and any other byproduct generated during washing. The regulator will be, however, empowered to resolve disputes.