KOLKATA (miningweekly.com) – State-run miner Coal India Limited (CIL), which accounts for more than 80% of domestic supplies of dry fuel, has called for the establishment of a coal industry regulator, following the government’s decision to permit 100% foreign direct investment in coal mining.
“India needs a coal sector regulator along the lines of Telecom Regulatory Authority of India and Central Electricity Authority,” said CIL technical secretary M K Singh.
“One thing missing is a national coal regulator for an industry of such size and diversity. This is the time that we should plan for a very strong regulator combining the interests of all industry stakeholders,” he stated.
Singh said that following the opening up of coal mining to foreign mining companies through wholly owned Indian subsidiaries, the Coal Ministry was working to frame a National Coal Index.
The National Coal Index is being formulated to form the basis of a revenue-sharing model between private miners and the government and also to set benchmark valuation of each coal block.
The National Coal Index will also enable the benchmarking of coal prices across the country, cost of production and efficiency of operations, he adds.
The proposal for a coal index was first mooted last year to replace the current model wherein valuation of coal blocks is based on ‘notified price’ announced by CIL.
Referring to CIL’s future projects, Singh said that the miner had submitted 85 projects for environmental and forest approval with combined production of 493-million tons a year.