CCI Finds PSU – IREL (India) Ltd. Dominant in Beach Sand Ilmenite Market but Rules Out Abuse of Dominance

Case Details: Beach Mineral Producers Association v. IREL (India) Ltd. - [2025] 170 taxmann.com 849 (CCI)

Judiciary and Counsel Details

• Ms Ravneet Kaur, Chairperson, Anil Agrawal, Ms Sweta Kakkad & Deepak Anurag, Members
• Tarun Gulati, Sr. Adv., Abhay Joshi, Ms Aayushi Sharma, Ms Bhaavi Agrawal, Pavan Kalyan and Ms Shruti, Advs. & G. Balasubramanian, General Manager of IREL (India) Ltd. for the Respondent.

Facts of the Case

In the instant case, OP was a PSU, engaged in mining and production of certain minerals, rare earths and chemicals. The Informant, comprising members involved in beach minerals industries, filed the information against OP alleging that OP was abusing its dominant position in the relevant market of ‘mining and supply of Beach Sand Ilmenite in India’.

It was alleged that OP was adopting practices such as imposition of unfair or discriminatory conditions in the sale of Ilmenite, restricted/limited supply to domestic consumers and charging excessive prices.

OP submitted that as it catered to the supply of key strategic minerals, chemicals etc., meant for the atomic energy program in the country, all its operations were incidental to the sovereign functions of the Government of India (GoI) and, hence, it did not fall within the meaning of ‘enterprise’ defined under section 2(h) of the Competition Act, 2002.

It was noted that Ilmenite (FeTiO2) was obtained from Beach Sand Deposits as another by-product, which was mined and extracted by OP devoid of Prescribed Substance and free of radioactive content and, hence, mining and supply of Ilmenite was simply an economic activity performed by OP.

CCI Held

The CCI observed that OP was an enterprise under section 2(h) of the Act with respect to mining and selling of Ilmenite. Further, OP was in a dominant position in the relevant market of ‘mining and supply of beach sand Ilmenite in India’.

The CCI held that though OP was covered under the ambit of ‘enterprise’ prescribed under Section 2(h) of the Act and was found to be in a dominant position in the relevant market of ‘mining and sale of Beach Sand Ilmenite in India’, no case of contravention of the provisions of section 4(2)(a)(i), 4(2)(a)(ii) or 4(2)(c) was made out against OP.

List of Cases Referred to

• Coal India Limited and Another v. Competition Commission of India and Another (2023) 10 SCC 345 (para 20).