The Competition Commission of India (CCI) has found Coal India Limited (CIL) and its subsidiaries to be in contravention of the provisions of Section 4(2)(a)(i) of the Competition Act, 2002 for imposing unfair or discriminatory conditions in Fuel Supply Agreements (FSAs) with the power producers for supply of non-coking coal.
It has imposed a penalty of Rs 591.01 crore upon CIL for the abusive conduct, Bureaucracy Today has learnt.
The Final Order was passed on Friday by the CCI based on a batch of information filed by Maharashtra State Power Generation Company Limited and Gujarat State Electricity Corporation Limited against CIL and its subsidiaries: Mahanadi Coalfields Limited, Western Coalfields Limited, and South Eastern Coalfields Limited.
CCI noted in the order that CIL did not evolve, draft, finalize the terms and conditions of FSAs through a bilateral process and the same were imposed upon the buyers through a unilateral conduct. Apart from issuing a cease and desist order against CIL and its subsidiaries, CCI has directed modification of FSAs in light of the findings and observations recorded in the order.