Companies

Competition panel asks Coal India to examine spot e-auction scheme afresh 

Our Bureau New Delhi | Updated on January 23, 2018 Published on November 18, 2015

The Competition Commission of India has asked Coal India to examine afresh its spot e-auction scheme to prevent possible violation of competition norms. However, the fair trade watchdog on Wednesday rejected a complaint of unfair business practices against the public sector miner.

DB Power Ltd had filed a complaint alleging that that CIL and its subsidiary companies abused their dominant positions with respect to spot e-auction of coal.

Competition Commission of India (CCI) considered ‘sale of non-coking coal to the bidders under spot e-auction scheme in India’ as the relevant market in the present matter.

In its order, the watchdog stated, “The Commission has not recorded any finding of contravention yet it is apparent that the parties are either aggrieved of the terms per se or the conduct emanating there from,” the order said.

It was constrained to note that the e-auction scheme has come up in challenge in various cases where buyers have alleged lack of reciprocity and mutuality of obligations in the terms and conditions thereof, it added.

“The Commission, therefore, believes that it would be appropriate that CIL examines the entire scheme afresh after inviting suggestions from the stakeholders. Such participatory and consultative process would not only inspire confidence of the stakeholders but such exercise would also make the scheme more acceptable besides obviating any possible violation of the provisions of the Act and challenge there to,” the order said.

The watchdog said the exercise should preferably be completed within 60 days from the date of the order.

 

Published on November 18, 2015
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