The Competition Appellate Tribunal on Monday stayed a fine of Rs 1,773 crore slapped on Coal India by the Competition Commission of India (CCI).
In December, the CCI had imposed the penalty on the public sector miner for abusing its dominant position as a fuel supplier.
“The Competition Appellate Tribunal has put a stay on the CCI order that directed Coal India to act within a month. The next hearing is scheduled on February 11,” a source told
The Tribunal has also said there is no need to modify the fuel supply agreements at the ‘moment’ and also it is not required to enter into negotiations with buyers for fresh agreement, the source added.
The anti-monopoly watchdog had directed modification in the fuel supply agreements between Coal India and its buyers. Further, for effecting these modifications in the agreements, Coal India was ordered to consult all the stakeholders. It was also directed to ensure parity between old and new power producers as well as between private and public sectorpower producers.
The CCI judgment came after a complaint by Maharashtra State Power Generation Co Ltd (Mahagenco) and Gujarat State Electricity Corp Ltd against Coal India and its subsidiaries (Mahanadi Coalfields Ltd, Western Coalfields Ltd, South Eastern Coalfields Ltd).
Mahagenco accused Coal India of supplying low quality coal at higher prices and putting in place non-transparent contract conditions on quality and other supply parameters.
siddhartha.s@thehindu.co.in