MUMBAI : The Competition Commission of India has directed Coal India Ltd to modify its fuel supply agreement with power generation companies and ‘cease and desist’ from indulging in abuse of market dominance. Coal India is already been fined 17.73 bln rupees for alleged anti-competitive practices.
The competition panel move follows a complaint from the Madhya Pradesh Power Generation Co Ltd against Coal India and its subsidiary South Eastern Coalfields Ltd.
Coal India’s practices have been found in contravention to provisions of section 4(2) of the Competition Act, 2002. The director general-investigations of the competition panel found that
Coal India had drafted fuel supply agreements “according to its own priorities and convenience without giving consideration to the interest of all the stakeholders”.
The commission, however, refrained from imposing more fine on Coal India.
The competition panel said Coal India, through its subsidiaries, operates independently of market forces and enjoys undisputed dominance in relevant markets of supply of
non-coking coal to India’s thermal power producers and sponge iron manufacturers.
Coal India has been asked to comply with the order within 60 days. -Cogencis
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