CCI orders probe against Coal India

Competition watchdog CCI has ordered a probe into allegations that coal giant Coal India is imposing unfair conditions for the supply of coal to Maharashtra State Power Generation Company (MahaGenco).

The probe has been ordered after a complaint was filed by MahaGenco against Coal India and its subsidiary Mahanadi Coalfields.

“MahaGenco has alleged that Coal India is abusing its dominant position by imposing unfair conditions on Coal supply. We have asked the Director General (Investigations) to probe the allegations and give his report in 90 days,” a senior official told PTI.

The complaint, the official added, has been admitted under section 4 of the Competition Act, 2002. Section 4 pertains to abuse of dominant position by market players.

On being contacted, a Mahanadi Coalfields official said, “The complaint against us does not have any merit and we are giving coal as per fuel supply agreement”.

The public sector coal giant is one of India’s most valued companies and the largest supplier of the fossil fuel.

The CCI, which became fully functional in July last year, is the country’s anti-competition and anti-trust body, formed under an act of Parliament.

Source: moneycontrol.com

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SUMIT KUMAR

Executive at India Electron Exchange

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