The Competition Commission of India (CCI) has launched an investigation into allegations of anti-competitive practices followed by Gujarat Gas Company turning its gaze on a public sector gas supplier for the first time. Gujarat Gas is a gas transmission and distribution enterprise controlled by Gujarat State Petroleum Corporation, the flagship company of the Gujarat government. The CCI probe follows a complaint by the Indian unit of global glassmaker Saint-Gobain, which said its gas supply agreement (GSA) with Gujarat Gas contains unfair and discriminatory clauses that run afoul of the Competition Act of 2002. "Prima facie, the clauses of GSA appear to be abusive of dominant position by the opposite party (Gujarat Gas) and the matter requires detailed investigation," the CCI said in an order reviewed by ET. The CCI is probing the supply of gas by Gujarat Gas to float glass plant in Jhagadia in south Gujarat that Saint Gobain Glass India bought from private glassmaker Sezal Glass BSE in 2011. According to the CCI order, Saint-Gobain has complained against a long-term contract, absence of an exit clause, a minimum guarantee offtake liability and right of first refusal in its agreement with Gujarat As. "Prima facie, the allegations seem to have force," the CCI said.
