Lack of competition hurting power sector growth: CCI chief Ashok Chawla

NEW DELHI: Emphasising that good competitive environment helps in promoting business dynamism, CCI chief Ashok Chawla said that the lack of competition is hurting the growth of power sector.

The Competition Commission of India (CCI) keeps a tab on unfair trade practices at the market place.

Speaking at the Delhi Economics Conclave, the CCI chairman said that lack of competition is hurting the Indian power sector.

"Worst hurt is the power (sector) where capacity shortages have caused constraints to economic growth. The control of the infrastructure, that is the electricity wires, by the dominant firm gives rise to access issues," Chawla said.

According to him, there is conflict of interest when content and carriage is with the same entity.

At present, power distribution companies (discoms) supply as well as manage network that provides electricity for residential and commercial purposes.

The government is working on a proposal where a power supplier would not manage the electricity distribution network.

Meanwhile, Chawla said the competition law has primarily three elements -- to act against anti-competitive agreements, mergers and acquisitions, and curb abuse of dominant market position by entities.

So far, the Commission has received more than 400 matters related to anti-competitive agreements and abuse of dominance. With regard to M&As, around 150 proposals have been decided so far, he said.

Chawla also laid stress that good corporate governance is critical for ensuring fair competition.