Leading cement manufacturers are having to answer some unpleasant questions.The government suspects that big players in the industry share a good rapport among themselves and has ordered a probe into their practices to see if there is a cartel.The company affairs ministry has noticed an unnatural shortage and price fluctuations in cement supplies in Hyderabad.It has asked the director general of investigation and registration attached to the MRTP Commission to investigate the issue.His office has now sought information on the supply and price variations of cement in the city from three leading cement makers.
One of these companies has a stake in another one and the three share among themselves around 34% of the countrys cement market.The alleged understanding was first noticed when the ministry did a sample survey.The DGIR is now awaiting a response from the companies. Companies in smaller segment too are not far behind in giving the impression of having an inappropriate understanding with business rivals to support prices.Hindustan Latex, is under the scanner for allegedly reaching an understanding with competing private sector bidders in supplying contraceptives to its own parent,the union health ministry.Health ministry got suspicious as private companies and public sector firms quoted a price of Rs 25.Ministry appointed the tariff commission to probe the issue, which said that a fair price could be Rs 15.55 a piece.Subsequently,the firms agreed to supply at around that rate. |
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| Posted : 12/13/2005 |
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