CCI again finds Coal India violating competition norms

The state-run miner was also penalised in December last

GN Bureau | May 20, 2014



Competition Commission of India (CCI) has directed the state-run miner to "cease and desist" from indulging in unfair business practices, after again being found guilty of abusing its dominant position in fuel supplies.

The latest ruling on a batch of complaints come a few months after the CCI slapped a Rs 1,773.05 crore penalty on CIL and its subsidiaries in December last.

CCI's order has come on complaints filed by Sponge Iron Manufacturers Association, Madhya Pradesh Power Generating Company and West Bengal Power Development Corporation. The order, dated April 15, has been passed against Coal India and seven of its subsidiaries - South Eastern Coalfield, Eastern Coalfields, Bharat Cooking Coal, Mahanadi Coalfields, Central Coalfields, Western Coalfields and Northern Coalfields.

Coal India through its subsidiaries "operates independently of market forces and enjoys undisputed dominance in the relevant markets of supply of non-coking coal to thermal power producers and sponge iron manufacturers in India", the watchdog said. The fair trade regulator has asked the coal miner to modify its fuel supply agreements.

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