Tribunal orders investigation in OMCs ethanol tender

The Competition Appellate Tribunal (COMPAT) on Thursday ordered Director General of the Competition Commission to commence a thorough investigation of ethanol tender floated by oil marketing companies (OMCs) this year.

Hearing the complaint filed by chemical manufacturer India Glycols Ltd, the tribunal sought an undertakings from two industry bodies – Indian Sugar Mills Association (ISMA) and All India Ethanol Manufacturers Association (AIEMA) assuring of no cartelization in ethanol supplies. The complainant’s pledge seeking a stay on the post November 12 tender was dismissed by the tribunal.

“Yes, the tribunal dismissed our request to put a stay on the tender. But ordered a thorough investigation and sought undertakings for not forming a cartel,” said Lalit Sharma, a senior official of India Glycols.

OMCs ordered to supply 400 million litres of ethanol to sugar mills for first tender while examination of technical bids is on for the second tender of 1,335 million litres.

“We will file our undertaking with the tribunal on Friday. We do not feel the need of forming a cartel due to short supply of ethanol. Sugar mills will continue to supply the green fuel and OMCs to procure,” said a senior sugar industry official.
The complainant had filed another complaint seeking investigation in tenders of pre-November 2012 tenders. The tribunal re-scheduled its hearing on November 27.