Coal Regulatory Authority little more than eye-wash
- The long waited constitution of a Coal Regulatory Authority (CRA) was initially welcomed by all.
- The initial enthusiasm has given way to a sense of disappointment & is considered an eye-wash for the following reasons :
- the proposed authority will not be independent.
- it will be under administrative control of Union Coal Ministry and administrators of Coal India Ltd., which enjoys a virtual monopoly and accounts over 85% of the output.
- coal prices were deregulated long ago & that’s why the government did not allow CRA to have a regulatory role on price.
- it’s primary function is to advice Central Government on formulation of principles and methodologies for determination of price of raw coal, washed coal and on the procedure for automatic coal sampling.
- Government controls appointments through a Committee headed by Chair of Public Enterprises Board (PEB).
- no independent outside specialists.
- Government rushing through it during an election year.
- although the Government has to form an interim body until CRA is appointed, the interim CRA will function for 5 yrs.
- Coal Regulatory Authority (CRA)
- Red Tape