**Executive Summary**
This document presents the Government of India's response to Lok Sabha Starred Question No. 132, answered on February 10, 2026, regarding cases of price coordination in the steel sector between 2015 and 2023. The Competition Commission of India (CCI) is involved in investigating alleged cartelization, with a report submitted and currently under inquiry. The Ministry of Steel notes that the steel sector is deregulated and prices are determined by market dynamics.
**Key Points / Main Content**
* **CCI Investigation of Alleged Cartelization:**
* The CCI registered a case regarding alleged cartelization by steel manufacturers, following directions from the Hon'ble Madras High Court in Criminal Original Petition No. 6153 of 2021.
* The Director General of the CCI conducted an investigation and submitted a report, which was shared with the parties for their objections/suggestions.
* The matter is presently under inquiry by the Commission per the provisions of the Competition Act, 2002.
* **CCI's Mandate and Actions:**
* The CCI is mandated to prevent practices having an adverse effect on competition.
* The CCI examines information alleging anti-competitive practices and can initiate suo moto inquiries.
* Upon completion of the inquiry, the CCI issues orders, including cease and desist directions, monetary penalties, and other remedies, in accordance with the Competition Act.
* **Steel Sector Deregulation and Government's Role:**
* Steel is a deregulated sector, and steel prices are determined by demand-supply dynamics, input costs, and prevailing taxes/duties.
* The government acts as a facilitator by creating a conducive policy environment for the development of the steel sector, including small and medium producers.
**Impact Analysis**
**Steel Manufacturers**
* **Impact:** Steel manufacturers are under investigation for alleged cartelization practices. They may face penalties or remedial measures if found in contravention of the Competition Act.
* **Action Required:** The parties are to file their objections/suggestions in accordance with the provisions of the Competition Act, 2002.
**Consumers and Downstream Industries**
* **Impact:** Consumers and downstream industries are impacted by anti-competitive practices like price coordination in the steel sector.
* **Action Required:** No specific action is required from the consumer or downstream industries. The CCI will ensure any safeguards or mechanism in place to protect consumers and downstream industries from any impact of such practices.
**Competition Commission of India (CCI)**
* **Impact:** The CCI is mandated to prevent practices having adverse effect on competition.
* **Action Required:** The CCI must continue to investigate cases, examine information alleging anti-competitive practices, and issue orders to rectify any contraventions of the Competition Act.
Key Entities Referenced
Competition Act, 2002: Deals with anti-competitive practices and is the legal basis for actions by the Competition Commission of India (CCI).
Competition Commission of India (CCI): Investigates and addresses anti-competitive practices, including price coordination in the steel sector.
Ministry of Corporate Affairs: The ministry responsible for matters related to competition in the steel sector.
Ministry of Steel: The ministry that informed that steel is a deregulated sector.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
STARRED QUESTION NO. 132
ANSWERED ON MONDAY, FEBRUARY 10, 2026
CASES OF PRICE COORDINATION IN THE STEEL SECTOR
QUESTION
132. Shri Sasikanth Sentil:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether cases relating to alleged price coordination in the steel
sector were examined/investigated by the Government during the
period 2015 to 2023;
(b) if so, the details of such cases, including findings recorded and
directions issued under the Competition Act, 2002, in this regard;
(c) whether any penalties or remedial measures were imposed by the
Government pursuant to such findings, if so, the details thereof;
(d) the steps taken/being taken by the Government to prevent
recurrence of anti-competitive practices in the steel sector; and
(e) whether any safeguards/mechanism have been put in place by the
Government to protect consumers and downstream industries from
the impact of such practices and if so, the details thereof?
ANSWER
THE MINISTER OF FINANCE (SHRIMATI NIRMALA SITHARAMAN)
AND CORPORATE AFFAIRS
(a) to (e) A statement is laid on the Table of the House.
*****STATEMENT REFERRED TO PARTS (a) to (e) OF LOK SABHA STARRED
QUESTION NO. 132 FOR 09.02.2026 REGARDING CASES OF PRICE
COORDINATION IN THE STEEL SECTOR.
(a) to (c): The Competition Commission of India (CCI) has registered a
case pertaining to the alleged cartelisation by steel manufacturers
pursuant to the directions of the Hon’ble Madras High Court in Criminal
Original Petition No. 6153 of 2021. The Director General, CCI was directed
to conduct investigation in accordance with law. After investigation, the
Director General submitted the Investigation Report, which was shared
with the parties with directions to file their objections/suggestions in
accordance with the provisions of the Competition Act, 2002. The matter
is presently under inquiry before the Commission as per the provisions of
the Act.
(d) & (e): The Competition Commission of India (CCI) inter alia is
mandated to prevent practices having adverse effect on competition.
Towards this, the CCI examines the Information(s)/ References received
alleging anti-competitive practices or initiates suo moto inquiries in
appropriate cases.
Upon completion of the inquiry, the CCI issues orders, including cease
and desist directions, imposition of monetary penalties, and such other
remedies as may be warranted, in accordance with the provisions of the
Competition Act, where contravention of its provisions is established.Further, the Ministry of Steel has informed that Steel is a deregulated
sector and steel prices are determined by demand supply dynamics of
market forces, input cost of steel companies and prevailing taxes/duties.
The Government acts as a facilitator, by creating a conducive policy
environment for the development of the steel sector including small and
medium producers in the country.
*****