Coal news and updates

CIL to challenge CCI order

December 11: Coal India Ltd (CIL), the world's single largest coal miner, will challenge the order of the Competition Commission of India (CCI), which imposed a penalty of Rs 1773.05 crore on the miner for alleged abuse of its dominant position as supplier of coal to power producers.

"We have not yet seen the order, but we will take it (CCI order) up at appropriate forum," a senior official of the company told ICMW.

"Let us see the judgment. It was announced last evening, but we have not received anything from CCI. They may have given the verdict, but it can be challenged in a tribunal or a court," the official added.

The CCI order can be challenged at the Appellate Forum and if the aggrieved party is not satisfied with the order of the forum it can move the Supreme Court.

Last year, CCI had imposed penalty on a number of cement makers for allegedly forming cartel to tweak prices.

The CCI had imposed the penalty on CIL through an order dated December 9. The commission had held that CIL, through its subsidiaries, operates independently of market forces and enjoys undisputed dominance in the relevant market of production and supply of non-coking coal in India.

Two power companies – Maharashtra State Power Generation Corporation and Gujarat State Electricity Corporation Ltd – had alleged that the coal miner had been supplying low quality coal at higher prices and had non-transparent contract conditions regarding quality and other parameters.

There could be more penalties headed as utilities in Madhya Pradesh, Punjab and West Bengal have also lodged similar complaints to the CCI against CIL.