Financial Daily from THE HINDU group of publications
Friday, Mar 25, 2005
Financial Daily from THE HINDU group of publications Friday, Mar 25, 2005 |
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Marketing
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Regulatory Bodies & Rulings Competition Commission to be super regulator Richa Mishra
New Delhi , March 24 THE Competition Commission of India (CCI) would continue to play the role of a super regulator even as the Government is considering setting up of a separate sector-specific regulatory body such as the Petroleum and Natural Gas Regulatory Board, with a mandate to prevent anti-competitive practices in that particular sector. The CCI, set up under the Competition Act, is responsible for promoting and sustaining competition in the market to protect consumers' interest. The commission is to look into anti-competitive agreement, abuse of dominant position by an enterprise, and regulate certain `combinations', including acquisition of shares, acquiring of control and mergers/amalgamation between and amongst enterprises. "It would play the role of a super regulator," official sources told Business Line. The Ministry of Company Affairs is understood to have outlined the role of CCI before the recently held meeting of the Committee of Secretaries, which is looking into the Petroleum and Natural Gas Regulatory Board Bill. Officials said, "The status of CCI has to be maintained." The overall power to examine anti-competitive practices would rest with the CCI, official sources stated. The Competition Act states that on a reference from a statutory authority, the CCI is mandated to express and deliver judicial opinion on a competition issue arising during the course of proceedings pending in the statutory authority, which can pass order only after having received the opinion of the commission. The Petroleum and Natural Gas Regulatory Board Bill had come in for sharp criticism from the Ministry of Company Affairs, particularly on the autonomy of the proposed Board, its powers to fix and regulate prices and its capability in fostering competition and to protect the interest of the consumers. The Bill proposes that the Board would oversee downstream oil refining and marketing of petroleum products, natural gas sales and transportation of and gas pipelines. The Group of Ministers has referred it to the committee of secretaries to examine the proposals. According to the Bill, the purpose of setting up the Board was to ensure uninterrupted and adequate supply of petroleum and petroleum products, including natural gas but not crude oil, to all parts of the country, including remote areas, at fair prices. The Board would also formulate sectoral regulations to ensure competition, protect consumers and encourage investment as well as take action against violation of rules and regulations set by it.
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