Coal news and updates

CCI looking into allocation of three coal blocks

The Competition Commission of India is looking into the possible cartelisation in the bidding for allocation of three coal blocks. "We are looking into the cartelisation aspect of the bidding," CCI member U C Nahta told reporters on the sidelines of MCCI session here today. The matter is at a preliminary stage and it would take some time, he said. The government last month cancelled bids of Jindal Steel and Power Ltd for a few coal blocks in the recently held auction amid speculation of cartelisation. The decision has been challenged by the company. During the current financial year, CCI has received 25 cases of anti-competitive activity. In the last fiscal, the number of cases received by CCI was 107. Nahta said that during the last five years, CCI had imposed a penalty of Rs 12,474 crore, adding that the highest levy was imposed on state-owned Coal India at Rs 1,773 crore. He said CCI had been advocating that state governments inform the commission about cartelisation efforts by the producers and suppliers in relation to the procurement policies. The CCI was also engaged in sectoral studies to find out abuse of dominance by important players in the respective fields.

source: http://www.moneycontrol.com