Competition Commission of India

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Competition Issues in Regulated Industries: Case of India’s Transport Sector

The study was commissioned to The Energy Resource Institute (TERI) with the main objective to assess the level of competitive activity in India's railways and port sectors and also to identify barriers to entry and review alternative regulatory frameworks for these transport sub-sectors in light of the relevant international experience.The study highlighted limited level of competition in the container movement. Study also highlighted that procurement in Indian Railways suffers from anti-competitive practices like cartelization and bid rigging. From the study, it is seen that the policy of reservation towards PSUs reduces the competition which is against the best interest of Indian railways. In case of Indian Ports, several factors like insufficient hinterland connectivity, associated transport cost, inadequate availability of infrastructure at the competing port and quality of service offered by the alternative port restrict inter-port and intra-port competition. Study suggests that government needs to revisit some of the clauses of the model concession agreements in light of their impact on competition in the sector

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