CCI rejects complaint against Power Grid Corp

The Competition Commission has dismissed allegations that Power Grid Corporation abused its dominant position with the policy that materials used in construction of transmission lines should be tested at NABL- approved laboratories.
While rejecting the complaint, Competition Commission of India (CCI) said every procurer must have the freedom in procuring goods and services. Besides, the watchdog noted that the informant has not provided any fact or figure to demonstrate the purported dominance of Power Grid.
As per guidelines, third parties have to get the materials tested from laboratories approved by the National Accreditation Board for Testing and Calibration Laboratories (NABL). This is mainly for materials used in constructing transmission lines and sub-stations.

'Market for laboratory services for testing construction materials in India,' was considered as the relevant market for the case.
CCI said that every procurer must have the freedom to exercise their freely in procurement of goods and services.
"...Such choice is sacrosanct in a market economy as the consumers are in the best position to evaluate what meets their requirements and provides them competitive advantage in provision of their services.

"While exercising such choice, they may stipulate standards for procurement which meets their requirement and the same as such cannot be held as anti-competitive", it said in a recent order.

Among others, it was alleged that Power Grid's policy has put third party laboratories out of competition and is done to create monopoly of NABL.
"By no stretch of imagination, Opposite Party (Power Grid) and its contractors can be considered as the lone consumers of laboratory services for testing of construction materials in India," the watchdog added.