On March 16, 2018, CCI disposed of the information filed by Karnataka Power Corporation Limited (‘Karnataka Power’) alleging violation of Section 4 of the Competition Act against Coal India Limited (‘Coal India’) and its subsidiaries, Mahanadi Coalfields Limited (‘Mahanadi Coalfields’) and Western Coalfields Limited (‘Western Coalfields’). Karnataka Power, a government company, is engaged in the business of generating electric power in State of Karnataka and purchases coal from Mahanadi and Western Coalfields for power generation by way of Fuel Supply Agreements (‘FSAs’).[1] Karnataka Power raised issues relating to lack of negotiations in drafting of FSAs entered into with Mahanadi and Western Coalfields, issues pertaining to qualities and quantities of coal supplied under FSAs, including those related to sampling procedure, grade slippage/ mis-declaration of grades, deemed delivery, lack of investments in coal mining and handling infrastructure.In this case, based on the earlier coal cases[2], CCI defined the relevant market to be the ‘market for production and sale of non-coking coal to thermal power generators in India’ and held Coal India and its subsidiaries to be in a dominant position in the market. CCI then observed that the issues raised by Karnataka Power have been substantially dealt with in the previous coal cases, and as such, no further orders are required to be passed in the matter. As far as freight issue relating to alleged overloading of wagons at railway sidings was concerned, CCI noted that although Coal India has provided detailed reasons for overloading, yet it has not taken any steps to remedy the situation. In this regard, CCI took on record assertions made by Coal India and its subsidiaries that the relevant clause in the FSAs casts a positive obligation upon the seller to rectify any overloading issues and accordingly, CCI directed Coal India to take remedial measures immediately on being intimated by Karnataka Power. CCI further observed that the request of Karnataka Power to direct Coal India to compulsorily invest in coal mining and handling infrastructure do not raise any competition issues, and in these terms, disposed of the information.[1] Case No. 11 of 2017. [2] Case Nos. 03, 11 and 59 of 2012.