The Indian Government's cabinet committee on economic affairs (CCEA) on Thursday approved the setting up of a regulator for the coal sector.

The proposal for the setting up of the Coal Regulatory Authority of India was approved through an executive order because enacting legislation on the subject would have taken a long time. It was very unlikely to be passed in the ongoing session of Parliament, which has been stalled over Telengana and many other issues.

The coal regulator will be empowered to specify the standards and methodology for fixing of price of raw coal and washed coal and any other by-product produced during mining and washing process.

Coal Minister Sriprakash Jaiswal had informed the Lok Sabha last week that the government would set up a non-statutory regulator for the coal sector through an executive order.

In a reply to the Lok Sabha, Jaiswal had said, "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."

The coal regulator will however lack legislative teeth envisaged in the Coal Regulatory Authority Bill, 2012. Thus, the non-statutory entity's orders will be advisory and not binding in nature.

The CCEA also approved GlaxoSmithKline Plc's proposal to increase its stake in its Indian subsidiary from around 50 per cent to 75 per cent at an investment of Rs 6,400 crore; and Japan-based Hitachi's FDI proposal of Rs 1,540 crore for a 100 per cent stake in Prizm Payment Services.