Fair trade watchdog CCI, which found Coal India guilty of abusing its monopoly in fuel supplies, has suggested introduction of more players in the coal sector to reduce dominance of one entity, Parliament was informed on Thursday.
“In its order concerning Coal India, the Competition Commission of India (CCI) has recommended introduction of ’more players’ in the coal sector to reduce dominance by any one party in the coal sector,” Corporate Affairs Minister Sachin Pilot said in a written reply to Lok Sabha.
The CCI also said that forming a coal regulator would not help unless there are enough coal producers in the market.
“It also pointed out that even establishment of independent regulatory oversight in that sector (coal) will only help if there are enough players in the market,” he added.
The CCI, in December, had imposed Rs 1,773 crore fine on Coal India, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.
Challenging the commission order, the company has filed an appeal with Competition Appellate Tribunal (Compat).
The Compat on February 11 adjourned the hearing petition filed by Coal India to April 16.