India's antitrust regulator, the Competition Commission of India, has imposed a fine of Rupee 5.91 billion ($90.92 million) on state-run miner Coal India Limited (CIL) and its subsidiaries for abusing its dominant market position.
In a 56-page order released Friday, CCI said that CIL did not finalize the terms and conditions of fuel supply agreements (FSAs) through a mutual bilateral process and the same were imposed upon the buyers through a unilateral conduct.
The CCI also found CIL and its subsidiaries to be in contravention of the provisions of the Competition Act for imposing unfair/discriminatory conditions in the supply of non-coking coal to power producers.
Besides ordering CIL and its subsidiaries to cease and desist from anti-competitive practices, the CCI also directed modification of the FSAs and to ensure uniformity between old and new power producers as well as between private and state-run power producers.
In 2013, the CCI imposed a penalty of Rupee 17.73 billion on CIL and subsidiaries on the complaints filed by Maharashtra State Power Generating Company and Gujarat State Electricity Corporation Limited accusing CIL of abusing its dominant position.
However, the Competition Appellate Tribunal set aside the original penalty order in May 2016 asking the CCI to reconsider the whole matter.
After taking a holistic view of the matter, the CCI decided to impose a penalty of Rupee 5.91 billion on CIL and directed it to pay the amount within 60 days.
A CIL spokesman could not be reached for comments.
