KOLKATA (miningweekly.com) – The Competition Commission of India (CCI) has dismissed Hindustan Zinc Limited’s (HZL’s) complaint against State-run Coal India Limited (CIL) for alleged unfair trade practices in coal supplies.
The Vedanta Resources subsidiary said in its complaint filed before the CCI that CIL and its operational subsidiary, Western Coalfields Limited (WCL), were abusing their dominant position as the country’s largest coal miner and that they were acting in a discriminatory manner by incorporating unfair terms and conditions in fuel supply agreements (FSAs).
The complaint was based on allegations of violation of Section 4 of the Competition Act by CIL and its subsidiary WCL.
CCI in its order issued on Monday said that the complaint was not tenable as similar complaints made against CIL by other complainants had been dismissed by the commission, which in those cases, had held that the miner had not abused its dominant position as a coal miner and supplier.
HZL also complained about issues of sampling procedures, grade determination and misdeclaration of grades, but CCI stated that these issues had already been addressed and that the necessary directives had been issued.
Last year, the CCI directed CIL to make changes in FSAs with its consumers, laying down sampling guidelines stipulations on the testing of consignments of coal supplied.
CCI said that, “no investigations need to be ordered against CIL since information brought before it by HZL has already been addressed in the course of hearing complaints by other coal consumers and hence the case stands disposed”.