CIL moves CCI against explosive producers

State-owned Coal India Ltd (CIL) has moved the Competition Commission of India (CCI) against explosive manufacturers, alleging the players were forming a cartel while quoting bids floated by the coal PSU, thereby, killing its right to procure products at fair prices.

Coal India’s complaint comes within months of a similar complaint filed by the Explosives Manufacturers Association of India (EMAI). The association alleged CIL was procuring 20-22 per cent of its requirement from a single explosives manufacturer without inviting bids. If explosive manufacturers were indeed forming a cartel by quoting similar prices, CIL’s decision to procure products without inviting bids would be justified, sources said. “Coal India has filed its complaint against sections 3 and 4 of the Competition Act 2002. They have alleged that EMAI has formed a cartel,” a senior CCI official said.