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Shares of Coal India today fell nearly 4 per cent after the Competition Commission of India (CCI) slapped a fine of Rs 1,773 crore on the company for allegedly abusing its dominant position as fuel supplier.
After making a weak opening, the state-owned company’s stock fell 3.6 per cent to Rs 274.95 on the BSE. On the NSE, the scrip lost 3.44 per cent to Rs 276.
However, the scrip pared some of the early losses and was trading at Rs 283.75, down 0.6 per cent in the noon trade.
Touching upon a host of issues related to coal supply, including sampling and testing procedures, the fair trade regulator has also ordered Coal India to modify the fuel supply agreements (FSAs) after consulting stakeholders.
The Competition Commission of India, in its order on December 9, had said that Coal India is operating independently of market forces and enjoys an undisputed dominance in the country for production and supply of non-coking coal.
It has also directed the company to cease and desist from anti-competitive practices.
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