Tribunal issues notices to CCI, Railways, SAIL on JSPL complaint

Our Bureau New Delhi | Updated on July 19, 2012 Published on July 19, 2012

Jindal Steel alleges anti-competitive motive in purchase agreement between Railways and steel major

The Competition Appellate Tribunal has issued notices to Competition Commission of India, Indian Railways and Steel Authority of India in a matter related to supply of railway tracks.

Notices have been issued on the basis of plea filed by Jindal Steel and Power Ltd challenging CCI's order. JSPL alleged that the exclusive agreement for purchase of rails by the Indian Railways (IR) from Steel Authority of India Ltd (SAIL) was anti-competitive in nature.

JSPL had approached the CCI in 2009.

The Apellate Tribunal has asked India Railways, SAIL and CCI to file their replies within four weeks. The matter would now come on August 30 for next hearing.

CCI, in its order in December 2011, had closed JSPL's complaint stating that there was nothing wrong in the agreement between the Railways and SAIL.

“The MoU has not hindered competition in the rail market. The allegation that SAIL as a dominant player has strategised to create entry barriers by locking Railways into a long-term agreement is not borne out by the available evidences," CCI had said in its order.

Counsel for JSPL argued that there was abuse of dominance by SAIL which has denied market access to JSPL by entering into an exclusive supply agreement with the Indian Railways on February, 2003.

JSPL had said that with nearly 96 per cent market share, SAIL has a dominant position and substantial market share in the market for rails in India that are compliant with RDSO, Ministry of Railways specifications.


Published on July 19, 2012
This article is closed for comments.
Please Email the Editor