The regulator will be empowered to specify the principles and methodology for determination of price of raw coal and washed coal and any other by-product generated during washing.
The regulator will also regulate methods for testing for declaration of grades or quality of coal, specify procedure for automatic coal sampling and adjudicate upon disputes between the parties besides monitoring closure of mines and approval of mining plans, among other things.
Coal Minister Sriprakash Jaiswal had earlier informed Parliament that a non-statutory regulator for the coal sector will be set up through an executive order as enacting a legislation on the subject will take some time.
The bill for setting up a regulator for the sector is pending before Parliament.
"The competent authority has...decided that a non-statutory Regulator will be set up through an executive order as enactment of legislation would take some time," Jaiswal had said in a reply to the Lok Sabha last week.
He had said that based on the recommendations of various committees, the ministry appointed a consultant to draft the Coal Regulatory Authority Bill.
This is for regulating as well as conserving resources in the sector and protecting the interests of coal consumers and producers, he had said.
The Draft Bill on the sectoral regulator was circulated to all the ministries and departments concerned seeking their views, he had said.