Coal news and updates

Compat stays Rs 1,773-crore penalty on Coal India

The Competition Appellate Tribunal (Compat) today stayed the penalty of Rs 1,773 crore slapped on state-run Coal India by the CCI for unfair trade practices.

The stay would be subject to the miner depositing Rs 50 crore in three weeks' time. The matter would be heard next on March 13.

Compat today heard Coal India's plea challenging Competition Commission of India's (CCI) order.

The CCI had imposed on Coal India Rs 1,773-crore fine, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.

The quantum of penalty - Rs 1,773.05 crore - is equal to 3 per cent of the PSU's average turnover for the last 3 years.

In its order on December 9 last year, the CCI had said that Coal India is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal.

According to the fair trade watchdog, Coal India abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs (Fuel Supply Agreements) through a bilateral process with procurers.

Subsequently, Coal India had approached Compat which hears and disposes appeals against any direction issued or order passed by the regulator.

Source: PTI