Cabinet Approves Rs 10,000 Crore Container Manufacturing Scheme, Targets 7.5 Lakh TEUs

New Delhi, Oct 29 (KNN) The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of Rs 10,000 crore until FY2040 to establish a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply-chain resilience.

Announced in the Union Budget 2026-27, the scheme will support the establishment of new container manufacturing facilities as well as the expansion of existing units. 

It aims to increase domestic production capacity, improve the competitiveness of Indian-made shipping containers and strengthen the country's maritime and logistics supply chains.

Three Components To Support Container Manufacturing

The scheme has three major components covering financing, operational costs, and testing and certification infrastructure.

With an allocation of Rs 859 crore, the component will provide interest subvention of 3 per cent per annum on eligible term loans taken by manufacturers to establish greenfield facilities or expand existing container manufacturing capacity.

The largest component, with an allocation of Rs 8,891 crore, will 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 domestically manufactured containers.

An allocation of Rs 150 crore will support common testing and certification facilities, including infrastructure for dynamic longitudinal impact testing.

Domestic Capacity Targeted To Rise Tenfold

The government expects the scheme to increase India's annual domestic container manufacturing capacity by around tenfold to 7.5 lakh twenty-foot equivalent units (TEUs).

The initiative is also intended to establish an internationally competitive manufacturing base, with the potential to position India as a global export hub for quality shipping containers.

By expanding domestic production, the scheme aims to reduce reliance on imported containers and improve the resilience of India's maritime and logistics supply chains.

Scheme Expected To Generate Over 53,000 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 involved in manufacturing container components and materials, including corner castings, specialised steel, wooden frames and paints.

The scheme's long-term financial support is intended to encourage investment in manufacturing capacity, strengthen domestic supply chains and improve India's position in the global shipping container market.

(KNN Bureau)