AGI Greenpac Limited Vs Bhagyanagar Gas Limited (Competition Commission of India)
The Competition Commission of India (CCI) examined allegations by AGI Greenpac Limited against Bhagyanagar Gas Limited concerning excessive pricing and refusal to enter into a tri-partite agreement. AGI Greenpac alleged that the prices charged by Bhagyanagar Gas for natural gas at different plants were excessive. The Commission, however, found that price variations stemmed from distinct market conditions, including differences in tax structures and sourcing mechanisms. It concluded that pricing in one market could not validly be compared to another, thus dismissing the excessive pricing claim.
Regarding the refusal to enter a tri-partite agreement, AGI Greenpac claimed Bhagyanagar Gas restricted its ability to procure natural gas from third-party suppliers using Bhagyanagar Gas’s pipeline. The Commission noted that Bhagyanagar Gas had not been designated as a “Common Carrier” under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act, which governs such arrangements. Consequently, the refusal was deemed compliant with statutory provisions and not anti-competitive.
Further, AGI Greenpac accused Bhagyanagar Gas of lacking transparency in price fixation under their Gas Supply Agreement (GSA). Bhagyanagar Gas countered that the pricing mechanism adhered to the GSA, linking prices to market rates and providing better rates than those for regasified liquefied natural gas (RLNG). The Commission concluded that these issues were contractual rather than competition-related and did not warrant intervention under the Competition Act.
