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Commerce min to discuss penalty on cement companies with CCI

Dec 19 2012, 03:06 IST
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SummaryThe commerce and industry ministry on Tuesday said it will take up with the Competition Commission of India the issue of cement companies "getting penalised" for idle excess capacity.

The commerce and industry ministry on Tuesday said it will take up with the Competition Commission of India (CCI) the issue of cement companies "getting penalised" for idle excess capacity.

"On the issue of getting penalised for idle excess capacity, your explanation that it is the result of a sluggish demand due to economic slowdown has merit. I will certainly raise this issue at appropriate levels and also with the Competition Commission of India (CCI)," minister of state for commerce and industry S Jagathrakshakan said.

On June 21 this year, the fair trade regulator CCI had slapped R6,307 crore penalty on 11 cement makers. Industry body CMA was also fined R73 lakh. Later in another report on July 30, CCI also imposed a fine of R397.51 crore on Shree Cements. The cement producers along with their association CMA have challenged CCI's findings before the Competition Appellate Tribunal.

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