BUSINESS

CCI imposes Rs. 591 crore penalty on Coal India

Company asked to desist from anti-competitive practices

Fair trade regulator Competition Commission of India (CCI) has imposed a penalty ofRs. 591.01 crore upon Coal India Limited (CIL) on finding that CIL and its subsidiaries violated the Competition Act by imposing unfair and discriminatory conditions in Fuel Supply Agreements (FSAs) with power producers for supply of non-coking coal.

Apart from ordering CIL and its subsidiaries to “cease and desist” from anti-competitive practices, the CCI also directed modification of the FSAs, a government statement said.

It added that CIL had also been directed to ensure uniformity between old and new power producers as well as between private and PSU power producers.

The order follows the Competition Appellate Tribunal remanding the matter back while setting aside the CCI’s original order in which a penalty of Rs. 1,773.05 crore was imposed on the coal major.

According to a statement from Coal India Limited, “The order is being studied and appropriate action may be taken at the proper forum.”

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