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Concentration of power in India Inc: Regulator reviews seven key sectors -Pranav Mukul and Anil Sasi

-The Indian Express

Simultaneously, it has started a review of all model concession agreements — the legal contract that forms the basis of the public-private partnership — across four key infrastructure sectors: airports, ports, electricity and railways.

AMID the unprecedented concentration of power in at least seven core sectors in corporate India, from pharma and telecom to airports and ports, the Competition Commission of India has launched a set of detailed investigations on the market dynamics of each sector.

Simultaneously, it has started a review of all model concession agreements — the legal contract that forms the basis of the public-private partnership — across four key infrastructure sectors: airports, ports, electricity and railways.

The goal is to ensure that competition remains “vibrant” and “there are enough players who are able to participate in the award of concessions,” CCI Chairperson Ashok Kumar Gupta told The Indian Express.

“The policy of the government is to make the economy more efficient, and, in that process, what the CCI can do is look at whether the dominance is abused or not. If there is abuse of dominance, CCI can take action under Section 4 of the Competition Act,” Gupta said.

Section 4 bars an enterprise from abusing its dominance and defines abuse through a range of steps that include denial of access, predatory pricing, limiting goods or services in a particular market.

In sectors such as airports, ports and highways, and electricity, concentration of power by itself was not a concern, the regulator said.

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