The UPA government’s efforts to set up a regulator for the coal sector has hit a roadblock with sharp differences emerging between the Law and Coal ministries on various provisions of the proposed National Coal Regulatory Authority (NCRA).

The government’s Integrated Energy Policy had suggested creation of a regulatory mechanism for ensuring a level playing field in each segment of the coal production and supply chain. Though the National Coal Regulatory Authority Bill, 2008 has been drafted, there is a need for consensus between the various ministries.

To begin with, differences between the law and coal departments cropped up on the crucial issue of who should head the proposed Authority. The Coal Ministry, in one of its proposals for the proposed NCRA, said its Chairperson should not necessarily be a retired judge. Instead he could be any reputed person with sectoral experience. The Law Ministry put its foot down insisting the person should have a judicial background.

Pushing its case, the Coal Ministry said most regulatory bodies were chaired by non-judicial persons. Even in the case of the telecom regulator TRAI, the legislation was amended to enable non-judicial persons head it, Coal Ministry sources told The Indian Express. The two ministries fell out also on the issue whether the regulator should be an Authority or a Board. While the Law Ministry made it clear that it should be named National Coal Regulatory Board, the Coal Ministry refused to agree arguing that other regulators are termed as Authority. “This is not an issue where there should be sharp differences, and we hope that it would be sorted out soon,” sources said.

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