Cabinet approves ₹10,000 crore scheme to boost domestic container manufacturing

The Cabinet on Wednesday, October 28, approved a ₹10,000-crore scheme to promote domestic container manufacturing as the government seeks to strengthen the country's manufacturing base and make Indian-made containers globally competitive.

The Container Manufacturing Promotion Scheme has a total outlay of ₹10,000 crore over 13 years, extending up to the financial year 2039-40.

The scheme has three major components, including interest subvention assistance of ₹859 crore, operational expenditure assistance of ₹8,891 crore, and testing and certification assistance of ₹150 crore.

The operational expenditure assistance component, which accounts for the bulk of the scheme's outlay, will provide financial support for containers manufactured according to global shipping standards and sold by eligible manufacturers.

Under the interest subvention component, eligible container manufacturers will receive 3% annual interest subsidy on term loans taken to establish new manufacturing facilities or expand existing capacities.

The scheme also provides ₹150 crore for testing and certification facilities, including common infrastructure for dynamic longitudinal impact testing.

To qualify, greenfield manufacturing facilities need to have an annual capacity of at least 1 lakh twenty-foot equivalent units (TEUs). The brownfield expansion projects will have to add at least 25,000 TEUs of annual capacity.

The facilities must be commissioned within three years of receiving in-principle approval and comply with global container standards.

The government expects the scheme to help India develop an internationally competitive container manufacturing base, with the potential to emerge as a global export hub for shipping containers.

The scheme is projected to generate around 3,000 direct jobs and more than 50,000 indirect jobs, while supporting ancillary industries involved in manufacturing components and materials such as corner castings, specialised steel, wooden frames and paints.