CCI gives SAIL clean chit over agreement with Railways

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CCI gives SAIL clean chit over agreement with Railways

The Competition Commission of India has given a clean chit to railways and SAIL MoU.

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The Competition Commission of India (CCI) has given a clean chit to railways and SAIL MoU.

The competition watchdog says that JSPL's allegations do not hold ground as it would be incorrect to say that SAIL has misused its dominant position to create entry barriers.

CCI has observed that markets of rails is emerging and is likely to see considerable growth with expansion of private sidings.

The complaint dates back to December 2009, when Jindal Steel and Power (JSPL) had alleged that the exclusive arrangement debarred JSPL (which also manufactures rail steel) from supplying rail steel to Indian Railways.

Dismissing the complaint SAIL had argued that the company had to undertake an investment of over Rs 700 crore solely for the manufacture of rail steel which it was not producing till then.

They had further argued it was because of this that the two sides had decided to enter into an arrangement in 2003 as per which SAIL would be the sole supplier of rail steel to Indian Railways.