Alleging the government of distorting competition in the steel sector, a CCI-sponsored study has suggested the competition watchdog should investigate the HR coil industry, which is dominated by a few top producers.

The study prepared by Indicus Analytics said, "The CCI should investigate and take a view on how to deal with potential anti-competitive behaviour in one segment of the industry ... the HR coil segment is quite apt since it has high concentration level".

The study said there is no doubt about the concentration level in certain products market "such as hot rolling coils is significant with the dominance of a few at the top".

Hot Rolling (HR) coils are a vital steel input for consumer industries like automobiles.

The study further added that the Competition Commission of India should also probe in captive mining and priority allocation of mines to some players, which is an indirect means of subsidisation.

"The difficulty with captive mining as a concept lies in the fact that it first creates a dominant position for the mineral and allows non-competitive pricing," the report said.