India to Set Up Coal Industry Regulator

Reuters reported that a group of ministers in India have approved a draft bill to set up a regulator for the country’s coal industry. The move is aimed at improving coal supply and eliminating corruption, an issue that has come to the fore recently in the wake of the Coalgate scandal.

As quoted in the market news:

‘A coal regulator is good as this sector will be opened up sooner or later for private participation and an independent regulator can provide a level playing field,’ said Rakesh Arora, managing director and country head of research at Macquarie Capital Securities (India) Private Ltd.

A group of ministers approved the draft bill on Wednesday to set up the regulator, Coal Minister Sriprakash Jaiswal said, but gave no further details. The bill must next be approved by cabinet and parliament.

‘We’ve tried to put together a very cogent, balanced bill which takes into account the interests of all stakeholders,’ Power Minister Jyotiraditya Scindia told reporters.

Click here to read the full Reuters report.