The Lok Sabha has passed the Coal Bill that will facilitate auction of mines and allow the government to end state monopoly on the sector with an executive order, setting the stage for the tougher challenge of getting the approval of the Upper House of Parliament where the ruling party is in minority.
Power, coal and renewable energy minister Piyush Goyal has consistently ruled out de-nationalisation of coal and has gone out of his way to assure people that state-run Coal India would actually be strengthened, not hurt. He also says that the auction of mines, permits on which were cancelled by the Supreme Court earlier this year, would not lead to an increase in power tariffs.
The Bill, which seeks to replace the Coal Ordinance with permanent law, has been keenly awaited by companies in the power, steel and cement sectors, many of which have large plants that had captive mines that have been taken away.Companies are keen that the Bill is passed to strengthen the auction process for which the government promulgated the ordinance.
The spotlight now shifts to the Rajya Sabha, where the BJP will need the support of other parties to pass the Bill. The Rajya Sabha is likely to consider it next week. The BJP is expected to negotiate with other parties, particularly the Congress to find a way to enact the crucial law.
Many opposition parties are planning to demand that the Bill be referred to a select committee. They say that generally, when a Bill is passed in the Lok Sabha without referring it to a standing committee, it is then referred to a select committee of the Rajya Sabha before it is put to vote in the Upper House.
While opposition parties such as the Trinamool Congress (TMC), Left and the Janata parivar are in favour of referring the Bill to the standing committee, the Congress is keeping its cards close to its chest.
Piyush Goyal has said in the past that he expects other parties to support the new Bill because it will help numerous small businesses and aspiring entrepreneurs who are facing the acute scarcity of fuel.The government expects the auction to lead to significant increase in coal output as many idling mines would be developed, and new technology as well as higher productivity would help the sector.
Power, coal and renewable energy minister Piyush Goyal has consistently ruled out de-nationalisation of coal and has gone out of his way to assure people that state-run Coal India would actually be strengthened, not hurt. He also says that the auction of mines, permits on which were cancelled by the Supreme Court earlier this year, would not lead to an increase in power tariffs.
The Bill, which seeks to replace the Coal Ordinance with permanent law, has been keenly awaited by companies in the power, steel and cement sectors, many of which have large plants that had captive mines that have been taken away.Companies are keen that the Bill is passed to strengthen the auction process for which the government promulgated the ordinance.
The spotlight now shifts to the Rajya Sabha, where the BJP will need the support of other parties to pass the Bill. The Rajya Sabha is likely to consider it next week. The BJP is expected to negotiate with other parties, particularly the Congress to find a way to enact the crucial law.
Many opposition parties are planning to demand that the Bill be referred to a select committee. They say that generally, when a Bill is passed in the Lok Sabha without referring it to a standing committee, it is then referred to a select committee of the Rajya Sabha before it is put to vote in the Upper House.
While opposition parties such as the Trinamool Congress (TMC), Left and the Janata parivar are in favour of referring the Bill to the standing committee, the Congress is keeping its cards close to its chest.
Piyush Goyal has said in the past that he expects other parties to support the new Bill because it will help numerous small businesses and aspiring entrepreneurs who are facing the acute scarcity of fuel.The government expects the auction to lead to significant increase in coal output as many idling mines would be developed, and new technology as well as higher productivity would help the sector.
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