New Delhi: The proposed Coal Regulatory Authority may take action against those companies who are holding possession over unused coal blocks. The Coal Ministry had initiated action against these companies two years back but due to pressures from all corners, it was abandoned. After the establishment of a regulatory body, which is in the offing, it will become tough for them to get away.

According to sources, bill for the formation of a Coal Regulatory Authority is soon going to be tabled in front of cabinet. Proposed bill will also have a provision for the formation of an Appellate Tribunal. The government is planning for the formation of these bodies within next six months.

Proposed draft for the bill was ready in 2010 but the government’s indecisiveness on policy matters resulted into delay of its implementation. Now with the recent coal mine allocation scam, the government is now working on the bill to legislate a law to check irregularities in allocation of coal blocks.   

Since 1993, the government has allocated 213 captive coal blocks to public and private companies. But only 28 coal blocks have witnessed mining activity whereas 42 coal blocks have been allocated in last three years but none has seen mining.

In the proposed Coal Regulatory Authority Bill, the regulator will have the authority to cancel the allocation or impose fine when not satisfied with the progress of mining at the sites. One of the prime responsibilities of the regulator will be to make coal block allocation process competitive. The regulator will also keeping an eye on the gradual price rise of coals from the mines to the market place.