Competition panel orders fresh probe into Coal India

The Competition Commission of India has ordered another probe into the allegations that state-run Coal India Ltd (CIL) and its subsidiaries abused their dominant market position in supplying fuel to power plants.

The latest investigation against the country's largest coal miner comes on a complaint filed by the West Bengal Power Development Corporation, reports PTI.

The commission has already investigated CIL after five complaints against it; and in at least three cases, the investigation reports have been submitted to the coal regulator.

Finding prima facie evidence of abuse of dominant market position, the CCI on 5 July ordered probe against CIL and its three subsidiaries - Eastern Coalfields, Bharat Coking Coal Ltd and Mahanadi Coalfields.

"The commission is of the opinion that the present case was a fit case for investigation into the allegations made by the informant about violation of provisions of Competition Act," CCI said.

The latest complaint says CIL imposed unfair conditions in the fuel supply agreements (FSAs) mandated by the government for guaranteed coal supplies to power plants.

Coal India is in a dominant position as it accounts for about 82 per cent of coal supply in the country, according to the commission.

"Taking advantage of their dominant position, the opposite parties were allegedly not adhering to the terms and conditions in the FSAs and conducting themselves in a manner detrimental to the interest of the informant," CCI noted.

The Commission has directed its investigation arm to probe the matter.

Earlier, the Commission had ordered probe against Coal India and its subsidiaries following complaints from different entities including Maharashtra State Power Generation Company (MAHAGENCO).