Niti Aayog moots new regulator for coal, gas

‘Energy market not fully developed’

June 28, 2017 09:30 pm | Updated 09:31 pm IST - NEW DELHI

Niti Aayog has suggested creation of regulators for coal as well as oil and gas.

“Coal and upstream petroleum sectors have lacked independent, statutory regulators. Due to several reasons, including strong presence of PSUs and limited number of private operators, it was so far not found useful to place the latter in position,” it said in a draft National Energy Policy.

“But, now with increased private activity, the time is appropriate,” it said in the new licensing policy unveiled on Wednesday.

“Ideally, there ought to be a single regulator to govern the energy market,” the Aayog said, pointing out that in India, the market has not fully developed.

Hence, the regulators need to devote considerable attention to development of supply. “And looking to the large inherent complexities in different fuel sources, it is pertinent that there ought to be sectoral regulators,” the NITI Aayog said.

The think-tank said that at the level of electricity, all fuels ultimately converge into a common product which is rightly governed by a single regulator.

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