Countrys fair trade watchdog has slapped a penalty of Rs 1,773.07 crore on Coal India Ltd (CIL) for allegedly abusing its dominant position in the non-coking coal market.
The Competition Commission of India (CCI) ruling has come on complaints filed by Maharashtra State Power Generation Company Ltd (Maha-Genco) and Gujarat State Electricity Corporation Ltd (GSECL) against the coal mining major and its subsidiaries Mahanadi Coalfields,Western Coalfields,and South Eastern Coalfields.
The CCI held that CIL through its subsidiaries operates independently of market forces and enjoys undisputed dominance in the relevant market of production and supply of non-coking coal in India … The CCI also held CIL and its subsidiaries in contravention of the provisions of Section 4(2)(a)(i) of the Competition Act,2002 for imposing unfair and discriminatory conditions in fuel supply agreements with the power producers for supply of non-coking coal, the CCI said.
A CIL spokesperson said that the firm would comment on the development only after going through the order.
In total,seven cases against CIL were registered. The order has been passed only in two cases and is awaited in others.