The Union Cabinet on Wednesday approved the ₹10,000 crore Container Manufacturing Promotion Scheme to boost local production. The plan targets 53,000 jobs and aims to increase annual capacity to 7.5 lakh TEUs. Ashwini Vaishnaw said, "Shipping lines have been requesting that another country emerge and establish a strong position."
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of ₹10,000 crore through the financial year 2039-40. The scheme aims to increase India's annual container manufacturing capacity nearly tenfold to 7.5 lakh twenty-foot equivalent units (TEUs), reduce import dependence and create more than 53,000 jobs.
The initiative is designed to establish a globally competitive container manufacturing ecosystem in India by supporting new manufacturing facilities and the expansion of existing units. Union Minister Ashwini Vaishnaw said that container production was heavily concentrated in a single country, with around 95% of global manufacturing taking place there, making diversification an important priority for the shipping industry.
"Given this heavy concentration, shipping lines and shipping companies have been requesting that another country emerge and establish a strong position in container manufacturing," Vaishnaw said.
He added that the scheme was intended to help India emerge as a new destination for container manufacturing over the coming years.
The scheme has three components, i.e. Interest Subvention Assistance (ISA), Operational Expenditure Assistance (OEA), and testing and certification support. Under the ISA component, ₹859 crore has been allocated to provide an annual interest subsidy of 3% on eligible term loans for setting up greenfield manufacturing facilities and expanding existing brownfield capacity.
The OEA component has been allocated ₹8,891 crore to provide financial assistance for containers manufactured to global shipping standards and sold by eligible manufacturers. The support is intended to bridge the cost gap and improve the competitiveness of Indian manufacturers. Another ₹150 crore has been earmarked for testing and certification assistance, including common facilities for dynamic longitudinal impact testing.
The government expects the scheme to generate approximately 3000 direct jobs and more than 50,000 indirect jobs. It is also expected to benefit ancillary industries supplying components and materials, including corner castings, specialised steel, wooden frames and paints.