The government plans to empower the regulator being set up for the coal sector with the authority to decide pricing. The proposal, if implemented, would deprive state-owned Coal India (CIL) the freedom it currently enjoys in fixing and revising prices of its output.

“The regulator’s primary function would be to set the prices of raw coal. A note on the Coal regulatory Authority Bill, 2010, has been sent to the Cabinet,” said a senior coal ministry official. He, however, added the authority would not have the power to grant or cancel mining licences.