Competition Commission of India (CCI) has imposed a penalty of Rs 1,773 crore on Coal India, the first major penalty on a state-owned company by the fair trade watchdog, for abusing its dominant position in fuel supplies.
The CCI, in its order on December 9, said that Coal India is operating independently of market forces and enjoys an undisputed dominance in the country for production and supply of non-coking coal. The fair trade regulator has also directed the company to cease and desist from anti-competitive practices.
The order came on complaints filed by Maharashtra State Power Generation Company and Gujarat State Electricity Corp against Coal India and three subsidiaries -- Mahanadi Coalfields, Western Coalfields and South Eastern Coalfields.
Coal India, one of India's biggest companies by revenue, has monopoly rights over exploitation of coal reserves. Accounting for more than 80% of domestic production, the company has been facing heavy criticism for not being able to meet demand, forcing those who need the fuel to seek recourse to costly imports.
The CCI, in its order on December 9, said that Coal India is operating independently of market forces and enjoys an undisputed dominance in the country for production and supply of non-coking coal. The fair trade regulator has also directed the company to cease and desist from anti-competitive practices.
The order came on complaints filed by Maharashtra State Power Generation Company and Gujarat State Electricity Corp against Coal India and three subsidiaries -- Mahanadi Coalfields, Western Coalfields and South Eastern Coalfields.
Coal India, one of India's biggest companies by revenue, has monopoly rights over exploitation of coal reserves. Accounting for more than 80% of domestic production, the company has been facing heavy criticism for not being able to meet demand, forcing those who need the fuel to seek recourse to costly imports.
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