An approval for setting up a regulatory authority for the coal sector has been given by a ministerial panel headed by Finance Minister P Chidambaram on May 29. Such authority is expected to bring greater transparency and efficiency in coal mining operations. The panel?s decision comes at a time when the government is parallelly looking at ways to open up coal mining for the private sector.

It will now be sent to the Cabinet for approval. The regulator will not have the power to decide prices of coal in the domestic market and state-owned monopoly player Coal India (CIL) will continue to enjoy freedom in setting prices. The regulator will have no say in the allocation of coal acreages, too. Lack of transparency in distribution of reserves had recently raised a controversy over allegedly favourable allocations.