You are here: Home » PTI Stories » National » News
Business Standard

CCI penalises South Asia LPG Company for unfair biz ways

Press Trust of India  |  New Delhi 

Competition Commission has slapped a fine of Rs 19.07 crore on South Asia LPG Company Pvt Ltd (SALPG) for abusing its dominant position with respect to providing terminalling services at Visakhapatnam port.

The case pertains to access to upstream LPG terminalling infrastructure at Vishakhapatnam port and the infrastructure, being operated by SALPG, used for handling imports of propane and butane and their blending into LPG.

East India Petroleum Pvt Ltd had alleged that while allowing to use the blender, SALPG has been insisting on mandatory use of cavern, which resulted in paying significant charges. Besides, it was alleged that various activities of the company were abuse of dominant position.

After a detailed investigation, the Competition Commission of India (CCI) found that SALPG enjoys dominant position in the market for upstream terminalling services at Visakhapatnam port, according to an official release.

Generally, terminalling refers to handling of raw materials, among others.

While SALPG sought to justify its conduct on the grounds of safety as well as efficiency and business justification, the CCI said the company's conduct was in violation of competition norms.

Subsequently, the watchdog has slapped a fine of Rs 19.07 crore on SALPG for indulging in anti-competitive conduct, the release said.

As per the release, the company has been directed not to insist on mandatory use of its cavern and should allow bypass of cavern for both pre-mixed and blended LPG without any restrictions.

"SALPG shall allow access to its competitors, potential as well as existing, to the terminalling infrastructure at Visakhapatnam port, subject to compliance with all safety integrity and other requirements...," it said.

The regulator said such an access should avoid additional cost burden on SALPG, and the entity seeking access should bear the cost, if any, towards necessary changes to the existing infrastructure.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, July 11 2018. 22:10 IST
RECOMMENDED FOR YOU