Exempt vessel-sharing deals from competition law: ShipMin

Awaiting MCA’ reply; aim is to improve India’s representation in global trade

- RUCHIKA CHITRAVANSHI & DHRUVAKSH SAHA

The shipping ministry has asked the Ministry of Corporate Affairs (MCA) to exempt vessel-sharing agreements (VSAs) from the purview of competition law to ensure better representation of Indian shipping lines and non-vessel operating common carriers (NVOCCs) in the global container trade, according to sources.

“The ministry has asked MCA to consider this exemption. We are awaiting a response,” a senior shipping ministry official said.

‘The exemption is being sought with respect to Section 3 of the Competition Act, which prohibits anti-competitive agreements between enterprises, persons or associations. In 2012, an exemption for VSAs was introduced for the first time for a period of one year. After several extensions, the exemption expired in 2021.