New Delhi: The Competition Commission has rejected allegations that power major NTPC abused its dominant position in the market with respect to purchase or sale of services of a mine developer and operator.
A complaint was filed with the fair trade regulator in respect of certain 'Invitation for Bids (IFBs)' issued by NTPC for development and operation of 'Kerendari-A Coal Block' at Hazaribagh in Jharkhand.
The complaint was made by Thriveni Earthmovers Pvt Ltd, a company engaged in development and operation of mines.
Thriveni had alleged that the country's leading power producer is "abusing its dominant position by unfairly and discriminatory changing the conditions" in the IFBs "and imposing unfair and discriminatory conditions, thereby ousting the potential competitor from the market and is risking the competition to a great extent".
The Competition Commission of India (CCI) in an order released today has rejected the complaint after it found "no case of contravention of the provisions of...The (Competition) Act" against NTPC.
According to Thriveni, NTPC had changed the qualifying requirements for tenders whereby the eligibility for MDOs had been restricted to experience in developing and operating coal/lignite mines as against experience in developing and operating coal, lignite, iron ore and bauxite mines.
"The Commission is of considered opinion that such change in the stipulated conditions whereby a procurer is restricting the zone of consideration to MDOs who have experience in developing and operating coal/lignite mines only cannot be termed as unfair or discriminatory," CCI said in the order.
Further, CCI noted that NTPC did not have the dominant presence in having coal mines and as such the firm being a dominant procurer of MDO services in India in respect of coal mines, "does not arise".
It also said that NTPC cannot be a dominant procurer for MDO services in India in respect of lignite, iron ore and bauxite as it does not deal with these for its operations.
