Presently the Indian Coal sector faces number of challenges covering inefficient mining practices, urgent need to step up production, shortages in supply, need for larger private capital, issues on quality and pricing mechanism, need for more robust contractual agreements between buyers and suppliers, clear process for mine opening/mine closing and rehabilitation etc. Indian coal sector is still a monopoly of public enterprises with private sector investments permitted mainly for captive use. To address these issues and to bring in larger public – private investments, the Government of India has taken steps to set up of a Coal Regulatory Authority.
The Coal Regulatory Authority Bill 2013 was approved by the Cabinet Committee on Economic Affairs (CCEA) in June 2013 and this is expected to be tabled in Parliament for final approval. The Coal Regulatory Authority shall then develop the detailed regulations for the specific functions assigned to it in consultation with various stakeholders. It is expected to establish guidelines and standards for grading of coal to be supplied, pricing mechanisms, ensuring adherence to FSAs and resolving disputes thereof, monitor and enforce mine closure plans and adherence to mining plans, advising various stakeholders in the sector and resolving grievance of coal producers and consumers. It is in the context of decision by GOI to set up Coal Regulatory body that InfralineEnergy has commissioned a study on policy and regulatory set up in the global coal industry and publish a report on Global Coal Regulatory Framework.
The report examines the structure of coal industry, institutional bodies, and policy- regulatory framework of eight countries and functions of various authorities administering and regulating the coal sector. It presents a broad comparative analysis of regulatory practices in various countries and established best practices to eventually provide various stakeholders, including GOI and the proposed Regulator, with mapping of global practices as they join together to develop regulations for the Indian coal sector. Infraline strongly believes that the reports will effective serve the above objective.