New Delhi: Jindal Steel and Power Ltd (JSPL) has filed a complaint with competition watchdog CCI against the Indian Railways for entering into an "exclusive agreement" with state-run SAIL for supply of products.
"JSPL has filed a complaint with the Competition Commission as it feels that exclusive agreement between Steel Authority of India (SAIL) and the Indian Railways would mar the company's chance of getting contracts in future," a CCI official told reporters.
JSPL was given a contract by the Railways for laying rail tracks, sources said. Later for a similar project, the Railways and SAIL entered into an exclusive agreement, which is being objected by the company, they added.
The exclusive agreement between Indian Railways and SAIL, JSPL contended, could kill the company's chance for competing for a project through competitive bids.
When contacted, a senior official of JSPL confirmed having filed such a complaint but did not give any details.
JSPL, according to CCI, has filed the complaint under section 3 of the CCI Act which deals with anti-competitive agreements entered into by companies that may lead to unfair competition in industry.
The CCI, however, has to admit the case, which is likely to come up for consideration some time later in the week.
If the Commission decides to admit the case, it will be referred to CCI's Director General for investigation.
The Competition Act 2002, which was enacted on January 13, 2003, aims at preventing practices that have adverse effect on competition; promoting and sustaining competition in markets, protecting the interests of consumers and ensuring freedom of trade carried on by other market participants.
The Competition Commission, which has recently become fully functional with the appointment of Chairman Dhanendra Kumar and other members, takes up cases pertaining to abuse of dominance, cartels, etc, to ensure free and fair competition in the country.
At present, the competition watchdog has been entrusted with powers to check abuse of dominance and anti-competitive agreements. However, with the notification of sections 5 and 6 of the Act, the CCI would be able to vet mergers and acquisitions which could have a bearing on competition.
Bureau Report