Cabinet clears ₹10,000 cr scheme to boost domestic container manufacturing

The 13-year scheme aims to raise annual capacity to 750,000 TEUs, attract 15-20% of global container manufacturing to India and generate over 50,000 indirect jobs

The Union Cabinet has approved a ₹10,000 crore shipping container manufacturing scheme, Union Minister of Information and Broadcasting Ashwini Vaishnaw announced on Wednesday.

 

The Container Manufacturing Promotion Scheme (CMPS) will run for 13 years up to the financial year 2039-40. It aims to strengthen domestic production of shipping containers and make Indian manufacturers globally competitive. Vaishnaw added that the government targets 15 to 20 per cent of global container manufacturing to be done in India.

 

The scheme was announced in the Union Budget earlier this year, and comes at a time when global conflicts have disrupted maritime trade and shipping, making container availability scarce.

 

 

The scheme will provide support through four different components:

• Interest subvention
• Testing and certificate assistance
• Land leasing support
• And Operational expenditure (OPEX) assistance

Under the interest subvention component, ₹859 crore has been earmarked to provide a 3 per cent annual interest subsidy on term loans taken by eligible manufacturers.

 

The scheme requires new manufacturing units to have an annual capacity of at least 100,000 TEUs, while existing units expanding their capacity must add at least 25,000 TEUs. Both must be commissioned within three years of in-principle approval and comply with global container standards.

₹8,891 crore goes to operating costs

The largest component of the scheme is operational expenditure assistance, with an outlay of ₹8,891 crore. The support is intended to help domestic manufacturers remain cost-competitive during their initial years of operation.

 

The assistance will vary according to container size and type. Manufacturers will receive ₹49,500 per 20-foot container and ₹86,625 per 40-foot container. For specialised 20-foot containers, the assistance will range from ₹37,125 to ₹74,250.

 

The scheme also provides ₹150 crore for testing and certification, accounting for around 1.5 per cent of the total outlay.

Concessional land and local sourcing requirements

Under the land leasing component, major port authorities may lease land to container manufacturing units at a concessional rate of 25 per cent, with relaxations to the Policy Guidelines for Land Management (PGLM). 

The scheme also sets minimum domestic content requirements to strengthen the local supply chain. Manufacturing units will need to meet a minimum local content threshold of 70 per cent until FY32, rising to 90 per cent from FY33.

Scheme expected to generate over 50,000 indirect jobs

The government estimates that the scheme will generate around 3,000 direct jobs and more than 50,000 indirect jobs. It is also expected to support ancillary industries supplying components and materials such as corner castings, specialised steel, wooden frames and paints.