Competition Policy Oversight Council mooted

Even as the Competition (Amendment) Bill, 2007, was tabled in the Lok Sabha last week, the Competition Commission of India (CCI) has recommended to the government to set up a Competition Policy Oversight Council.

"The council would be autonomous in nature. It would aim to monitor the implementation of the competition policy at the central and state levels," CCI member and acting chairman Vinod Dhall told Business Standard.

The recommendation to set up the oversight council was given by the CCI to the Planning Commission for the Eleventh Five Year Plan (2007-12).

Dhall added that the council would monitor progress in implementation of the national competition policy, review laws and policies, and undertake competition impact assessment of new laws and policies. "It will act as a facilitator, not regulator," Dhall added.

The CCI has also recommended an incentive scheme under which financial grants would be given to state governments who align their policies and laws with the principles of the National Competition Policy. The grants could be released based on the recommendations of the council regarding the progress made by the various state governments.

"The CCI will also be carrying out market studies to understand the state of competition in various sectors in order to advise authorities concerned to make changes and usher in greater competition," Dhall said.

The Competition (Amendment) Bill, 2006, was introduced in the Lok Sabha on March 9, 2006 following a Supreme Court judgement, which closed the writ petition against certain provisions of the Competition Act, 2002, and left open all questions regarding validity to be decided after the proposed amendment of the Act.

The same Bill was referred for examination and report to the Parliamentary Standing Committee on Finance. The committee presented its report to both the Houses of Parliament on December 12.

Taking into account the recommendations of the committee and the legal challenges, and to make the CCI fully operational on a sustainable basis, the Competition (Amendment) Bill, 2007 has been introduced last week in Parliament.