Global research firm, PwC has said that the new coal regulator set by the government in India coals help attract competition and private companies into the sector.

It said that decision to set up a regulator will help in cleaning up the crucial sector as it will help in increasing competition in the sector. PwC officials also said that the move to set up a regulator will change to competitive structure of the sector and increase participation from the private sector firms.

Kameswara Rao, energy utilities and mining leader at PwC India said, "The decision to set up a Coal Regulatory Authority (CRA) is significant as it institutionalises a number of issues currently dealt with by the government."

He union cabinet had announced its decision to establish an independent regulator for the coal sector for cleaning up the sector and make it more efficient. The regulator will also help in conserving the resources and in setting up a pricing mechanism for coal in the country.

The decision comes after similar decisions were made for the telecom, electricity and finance sectors. The government is expecting the Coal Regulatory Authority Bill, 2013 to be passed in the ensuing Monsoon Session.