The CCI has found that CIL is operating independently of market forces and enjoys an undisputed dominance in the market for production and supply of non-coking coal.

Fair trade watchdog Competition Commission of India (CCI) has slapped a fine of Rs.1,773.05 crore on Coal India Ltd. (CIL) for allegedly abusing its dominant position in the supply of the dry fuel — its first major penalty on a state-owned company.

The CCI has found that CIL is operating independently of market forces and enjoys an undisputed dominance in the market for production and supply of non-coking coal.

The penalty was imposed by the CCI through an order dated December 9, an official release said on Tuesday.

The ruling has come on complaints filed by the Maharashtra State Power Generation Company and the Gujarat State Electricity Corporation against Coal India and its three subsidiaries — Mahanadi Coalfields, Western Coalfields, South Eastern Coalfields.

According to the release, CIL and its subsidiaries have been found to be “imposing unfair/discriminatory conditions in fuel supply agreements (FSAs) with the power producers for supply of non-coking coal.” Such conditions violate fair trade norms.

Apart from issuing a cease and desist order against Coal India and its subsidiaries, the CCI has directed modification of FSAs.

Besides, the regulator has asked the company to consult all the stakeholders for making the modifications in the FSAs. In recent times, CIL has drawn flak for fuel shortages that have been hurting power generation.

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