The Container Manufacturing Promotion Scheme has been approved by the Union Cabinet, chaired by PM, on Wednesday. The new scheme comes with a budgetary outlay of ₹10,000 crore up to FY 2039-40, as per ANI.
The Container Manufacturing Promotion Scheme is 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 is expected to establish a globally competitive container manufacturing ecosystem in India. It is likely to reduce import dependence and strengthen supply-chain resilience while also establishing new manufacturing facilities and further expansion of existing units.
At a press conference following the Cabinet meeting, Union Minister opened up about the heavy concentration of global container manufacturing in one 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, quoted ANI.
Talking about the need to diversify global container manufacturing, he added, “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 said.
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 Container Manufacturing Promotion Scheme will comprise three major components– Interest Subvention Assistance (ISA), Operational Expenditure Assistance (OEA), and testing and certification assistance.
Under the ISA component, ₹859 crore has been allocated to provide to offer a 3% interest discount on loans for opening of greenfield manufacturing units or expanding brownfield capacities.
The OEA component has been allocated ₹8,891 crore as financial aid to subsidise local containers manufactured according to global shipping standards and sold by eligible manufacturers. The assistance is said to bridge the cost gap and improve domestic competitiveness.
Apart from these, ₹150 crore has been allocated for testing and certification assistance, including setting up of common facilities for container testing and safety certification.
The government remains hopeful about the scheme, which is expected to generate approximately 3,000 direct jobs and over 50,000 indirect jobs while also supporting ancillary industries, including corner castings, specialised steel, wooden frames and paints.
The initiative was announced in the
