The chairperson and members of regulatory commissions should be appointed by the President, on the recommendation of the Prime Minister, according to the draft Regulatory Reform Bill of the government. The draft has been placed on the NITI Aayog website for comments from the public till July 15. The broad provisions of the Bill are the same as the previous one floated by the earlier government.
The draft says the PM should choose from a list of two or three names short-listed by a committee with the approval of the ministry or department concerned. The draft also seeks to distribute economic subjects between the Centre and state governments.
The Bill will be applicable for regulators in electricity, oil & gas, coal, telecommunication & internet, broadcasting & cable TV, posts, airports, ports & waterways, railways & mass rapid transit system, highways & water supply, and sanitation. Financial regulators such as Reserve Bank of India do not fall within the ambit of the Bill.
The Bill says at least one member of the regulatory body should have a non-public sector background to enrich its functioning.
Like the previous draft, the new draft seeks to make the regulators accountable to Parliament. It suggests the regulators submit an annual report explaining their approach and a roadmap for the future to Parliament.
It also seeks to empower the regulators with financial independence and the powers to grant licences and appoint their own staff.
