Coal news and updates

 

The Competition Appellate Tribunal will hear next month the Coal IndiaBSE -0.28 % plea challenging the Rs 1,773 crore penalty imposed on it by CCI for unfair business practices. 

 

The tribunal heard the matter today and posted it for further hearing on April 16. 

 

In December, the Competition Commission of India (CCI) had slapped Rs 1,773-crore fine on the state-owned miner for for allegedly abusing its dominant position in fuel supplies. 

 

On February 26, the tribunal had stayed the penalty subject to CILBSE -0.28 % depositing Rs 50 crore in three weeks' time. The company has already deposited the money. 

 

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. It was also the major fine imposed by CCI on a state-owned enterprise. 

 

CCI had said that CIL is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal. 

 

Coal India LtdBSE -0.28 % 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, the CCI order had said. 

 

Subsequently, CIL approached the tribunal. 

 

Source: PTI