CCI imposes penalty on 50 LPG cylinder makers

Bindu D. Menon New Delhi | Updated on November 14, 2017


Finds collusive bidding in IOC tender

The Competition Commission of India has imposed penalty on 50 private LPG cylinder manufacturers for collusive bidding against Indian Oil Corporation tender.

The Commission has imposed a penalty on the companies at the rate of seven per cent of the average turnover of the company. It also warned the contravening parties against indulging in anti-competitive practices

Identical bids

In a recent order, the Commission said that these private operators had quoted identical rates during the bidding process floated by IOC for supply of 105 lakh domestic LPG cylinders (14.2 kg) in 2010-11.

In a complaint filed by Pankaj Gas Cylinder, the Commission found that there was similarity of pattern in the bids by all the 50 bidders who submitted the price bids for various States.

“On the basis of analysis of the bids, we have observed that there was strong indication of some sort of agreement and understanding among bidders to manipulate the process of bidding,” the Commission noted.

It noted that of the 63 bidders who participated in the tendering process, 50 bidders were qualified for opening price bids, 12 bidders were qualified as new vendors and one bidder was disqualified.

IOC, a leading player in the LPG business with 48.2 per cent market share, is a major procurer of the 14.2 kg LPG cylinders. In addition to IOC's tender, Hindustan Petroleum Corporation floated a tender for 36 lakh cylinders, and Bharat Petroleum Corporation floated tender for procurement of 40.33 lakh cylinders. While HPCL and BPCL adopted e-platform for tender invitation and finalisation, IOC was procuring by way of inviting tenders

Published on March 15, 2012

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