New Delhi: Country's largest power producer and also the biggest consumer of coal, NTPC Tuesday pitched for an early setting up of Coal Regulatory Authority, saying it would augment private participation in the sector.
"If a private sector comes in the coal sector, unless there is a regulator, it is not too sure about what kind of returns it will get," NTPC CMD Arup Roy Choudhury told reporters at an event here Tuesday.
He said the regulator has helped in attracting investments in the power sector.
"We have a regulator and private sector has come in abundance in the (power) sector," he said.
Choudhury added if something on these lines are initiated now, the results will start showing in the next 4-5 years.
He also said that it is a challenge to give reliable and affordable power to the people.
Last year, the government had discussed the proposal for a coal sector regulator and asked the Group of Ministers (GoM) to make recommendations on its powers and functions.
The setting up of an independent regulator for the coal sector is considered crucial for improving competitiveness in e-auctions, fixing guidelines for price revision in supply pacts, setting trading margins and increasing transparency in the allocation of reserves.
Constitution of a coal regulator was recommended in the country's Integrated Energy Policy as well as by the T L Shankar Committee on coal sector reforms.
A few states and other stakeholders have also been demanding setting-up of a coal regulator.
Last week, Coal Minister Sriprakash Jaiswal said the Coal Regulator would be in place soon.
"We discussed the matter and we are hopeful that it is likely to be finalised soon," he had said.
First Published: Wednesday, February 13, 2013, 13:16