NEW DELHI, Nov 4: The Competition Commission is expected to complete investigations into Coal India Ltd’s (CIL) alleged abuse of market dominance, especially related to fuel supply pacts, by December.
The Competition Commission of India (CCI) probe, initiated a few months ago, is taking place at a time when Fuel Supply Agreements (FSAs) have become a bone of contention between Coal India and its clients, the power utilities.
According to a source, the Director General (DG) of the Commission is expected to submit the report on Coal India by “early December”.
“The DG is looking into the alleged abuse of dominance by Coal India, especially with regard to FSAs with utilities,” the source said.
DG carries out investigations into complaints referred by the CCI. The fair trade regulator takes up issues for probe, only if it finds a prima facie case.
Earlier this year, Maharashtra State Power Generation Company (MAHAGENCO) had moved a complaint against CIL and its subsidiaries-Mahanadi Coalfields Ltd and Western Coalfields Ltd for alleged abuse of their dominant positions.
A few more entities are reported to have made similar complaints against CIL with the Commission.
According to MAHAGENCO, CIL was supplying low-grade coal at higher prices and putting in place non-transparent contract regarding the quality and other parameters of the dry fuel.
The Commission is probing the complaint under section 4 of the Competition Act that relates to abuse of dominant market position by enterprises.
CIL, which accounts for over 80 per cent of the country’s coal output, recorded production of 435.84 million tonnes in 2011-12.
In recent times, power generation has been adversely impacted due to acute coal shortages. (PTI)
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