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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.
