Explosives cos eye CCI showdown

Subhas Pramanik,Managing Director of Gulf Oil Corporation,the country8217;s largest explosives and detonators manufacture,said CIL,which is the largest consumer of explosives,is trying to browbeat the industry,leading to manufacturers losing control over prices.

8220;Our lawyers are working on filing an appeal in Appellate Tribunal. We have 60 days time to respond,8221; Pramanik said.

8220;Coal India,with several subsidiaries,consumes 70 per cent of the total explosives manufactured in India. That8217;s why the CIL price is very critical for the industry and sets the price for everybody else,8221; he said.

Pramanik said there are instances where prices of explosives in India are less than the prices of Ammonium Nitrate,which is the major ingredient in making explosives.

The companies slapped with the fine are: Gulf Oil Corporation,Ideal Industrial Explosives,Solar Industries India,Blastec India,Indian Explosives,Emul Tek,Regenesis Industries,Techno Blasts India,Black Diamond Explosives,and Keltech Energies.

CIL alleged that they are collectively determining prices,threatening to suspend supplies and even boycotted the reverse auctions organised by it to finalise suppliers for explosives that resulted in foreclosure of fair and free competition.