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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of Rs 10,000 crore up to FY 2039-40, aimed at increasing India's annual container manufacturing capacity by nearly ten-fold to 7.5 lakh twenty-foot equivalent units (TEUs).
According to an official release, the scheme aims to establish a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply-chain resilience. It will support the establishment of new manufacturing facilities and expansion of existing container manufacturing units. Addressing a press conference following the Cabinet meeting, Union Minister Ashwini Vaishnaw highlighted the heavy concentration of global container manufacturing in a single country. "...containers are a key component of trade in India and across the world. Almost all goods that are transported for export or import, except bulk commodities, are carried in containers," Vaishnaw said. Highlighting the need to diversify global container manufacturing, he said, "Container manufacturing is highly concentrated globally, with 95% of production taking place in a single country." "Given this heavy concentration, shipping lines and shipping companies have been requesting that another country emerge and establish a strong position in container manufacturing," he added. Vaishnaw further stated, "The Container Manufacturing Scheme approved by the Prime Minister and the Cabinet today has been designed to help India emerge as a new destination for container manufacturing over the coming years." According to the PIB release, the scheme comprises three major components, including Interest Subvention Assistance (ISA), Operational Expenditure Assistance (OEA), and testing and certification assistance. Under the ISA component, Rs 859 crore has been allocated to provide interest subvention of 3 per cent annually on eligible term loans for establishing greenfield manufacturing facilities and expanding existing brownfield capacities. The OEA component has been allocated Rs 8,891 crore to provide financial assistance for containers manufactured according to global shipping standards and sold by eligible manufacturers. The assistance aims to bridge the cost gap and improve domestic competitiveness. Additionally, Rs 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 3,000 direct jobs and over 50,000 indirect jobs while supporting ancillary industries, including corner castings, specialised steel, wooden frames and paints. The initiative, announced in the Union Budget 2026-27, is also expected to position India as a global export hub for quality shipping containers and strengthen maritime and logistics supply chains. (ANI)
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