The Competition Commission of India has let off Indian Railways and Container Corporation of India in an abuse of dominance case filed by Arshiya Rail.

However, it has asked the Railway Ministry to look into the issue of frequent changes in freight charges for container train operators.

The commission in its order said, “The Commission does not find Ministry of Railways or Indian Railways as dominant in the relevant markets and accordingly finds no abuse of dominance with regard to the violation… Also Concor is not dominant in this market and the allegation cannot be upheld.”

At the same time, CCI has also noted that there is a “conflict of interest” in Indian Railways role as licensor, and operator. Railway owns 63 per cent stake in Concor. “Private players look for consistency and continuity in policy,” CCI stated.

In fiscal 2010-11, Arshiya Rail had approached the CCI with a complaint against the Railway Ministry.

The key issue was the Ministry’s move of introducing steep hikes in haulage charges in 2010 for container operators.

Haulage charges are paid by container train operators to the Railways for use of its locomotives, tracks and other infrastructure making them largely dependent on the Railways.

For these players, the haulage charges account for nearly 70 per cent of the operating cost.

Another container train operator, Kribhco Rail had also approached the CCI on similar grounds.

In September 2010, the Railway Ministry had raised haulage charges by 170-200 per cent for movement of heavy commodities - cement, stone other than marble, iron and steel, alloys and metals, and petroleum products - by the operators.

The complaint had been made under Section 4 of the Competition Act, which deals with abuse of dominant position.

>Bindu.menon@thehindu.co.in

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