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					                                 Competition Policy – CCI India
Project Evaluation

The project start-up was delayed due to administrative procedures of both the World Bank Group and
DFID. The delay as well as DFID fiscal year end requirements (March 31, 2006) severely constrained the
time available and funds initially earmarked for the consultants. However, despite these major constraints,
good progress has been made, the agreed activities have been completed and outputs delivered. We have
started to see a more vocal CCI engaged in competition advocacy, including recent public statements on
PPP model for infrastructure projects. The actual outputs and some of the early outcomes are indicated in
blue text.

    Expected project
     Components/                       Outputs                  Expected Outcomes               Expected Impacts
       Activities

 Prepare sectors/sub-        3 sectors/sub-sectors            Increased CCI capacity to       Increased
 sectors studies detailing   studies including. This           handle anti-competitive          competition policy
 the nature and type of      encompass two activities:         cases in selected sectors as     advocacy in selected
 competition problems                                          evidenced by the number          sectors
 and market distortions          Preliminary findings         of investigations               Reduced anti-
 that exist, the segments         presented on 17-18           conducted.                       competitive
 of society or markets            March workshop (130         Recommendations for              practices in selected
 that are most affected in        participants from public     regulations / policy actions     sectors
 terms of consumer /              and private sector)          that need to be put in place    Greater
 economic welfare and            Interim reports on           to alleviate market              accountability and
 other costs, and                 telecom, food grains         distortions in specific          transparency in
 possible alternative             and energy delivered by      sectors of the economy, as       government-
 policy actions that can          experts. World Bank          evidenced by number of           business relations,
 be taken to alleviate the        experts currently            policy                           and reduced
 situation while meeting          commenting on reports.       statements/submissions           opportunities for
 other socio-economic            Final report with            made to relevant bodies.         corruption. (The
 objectives.                      recommendations to be       Foster the establishment of      draft national
                                  presented in a national      a Competition Law (The           competition policy
                                  conference in Delhi          amendments to the                discussion paper as
                                  during Phase II              competition law have been        it relates to public
                                                               tabled in parliament. A          procurement will
                                                               draft national competition       especially impact on
                                                               policy that aims to              corruption.)
                                                               introduce competition
                                                               principles in the
                                                               government’s commercial
                                                               activity such as
                                                               competitive procurement
                                                               of goods & services with
                                                               level playing field between
                                                               public & private
                                                               enterprises has been
                                                               drafted and being
                                                               reviewed/discussed
                                                               between ministeries.)
 Organize one workshop     A 2-day workshop               Increased Public-Private        Increased
 to (1) provide training   supported by FIAS, DFID,        dialogue on competition          competition policy
 on the analytical tools   and CCI-GoI (with own and       issues as evidenced by           advocacy in selected
 and methods employed      IDF grant funds) was held       number of consultative           sectors
 in conducting             in New Delhi on March 17-       meetings/conferences/brief      Reduced anti-
 competition               18, 2006. In attendance         ing sessions. (CCI has           competitive
 assessments and           were about 130 participants     since held number of             practices in selected
 regulatory impact         from the private and public     meetings with the planning       sectors
 analysis, and key         sectors including civil         commission and also
 success factors for       society. Among the              private sector
 effective competition     participants/speakers were      representatives on various
 advocacy, and (2) to      senior officials from the       matters—including
 review and disseminate    major industry associations     deterring adoption of
 the findings for          and various economic            (ruinous) policy proposal
 discussion and possible   ministries. In follow-up        to grant postal monopoly
 follow-up policy          meetings, convinced CCI         over courier packages of
 dialogue and actions.     that it was pre-mature to       500 grams or less.)
                           formulate M&A guidelines,      Increased awareness on
                           regulations and reporting       anti-competitive practices
                           requirements.                   in selected sectors as
                                                           evidenced by press
                                                           coverage and complaints
                                                           by affected parties.

                                                          Increased CCI technical
                                                           capacity to handled anti-
                                                           competitive practices in
                                                           selected sectors in terms of
                                                           number and quality of
                                                           public statements.

Remarks

In addition to these activities, the project team met with CCI Advisory Committee to
provide advice and comments on horizontal merger guidelines. The recommendation that
issuing these guidelines was premature was accepted and assisted in re-orienting
complementary technical assistance being provided by US-AID.

Under Phase I of the project, the three selected specific studies have identified a range of
competition, and regulatory issues that need to be addressed. The analysis conducted is of
a preliminary nature which needs to be deepened and expanded. This was/is planned as
part of Phase II as envisaged in the initial project design and agreed with the CCI-GoI
and DfID. Phase II needs to be embarked upon by July, 2006 so that the consultants have
sufficient time to conduct quality analysis. Accordingly, it is planned that an workshop to
review the interim empirical and policy analysis results will be held in mid-October, 2006
and a final larger conference to broadly disseminate the findings ad policy
recommendations to be held no later than March 2007.

DfID has already committed GBP75K (US$ 147K approx.) to the second phase of this
project and the CCI-GoI has also already committed own budget and IDF funds for the
other/additional sector studies.

				
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