Power Grid faces accusations of predatory pricing. Here's what the practice means
Updated : May 06, 2019 11:33 PM IST
Predatory pricing is a method where a firm offers such a low bid that other firms cannot compete and may be forced out of the market.
The Competition Act, 2002, is to ensure the welfare of the consumers by maintaining healthy competition in any relevant market, making practices such as predatory pricing illegal in India.
The spat between the private firms and the state-owned Power Grid can not only lead to a rift between the peer companies in the sector but can also lead to Power Grid facing legal action or a settlement, as per the authorities, now that the issue has been brought to light.