Govt approves container production scheme with outlay of Rs 10K cr

File photo: Union minister for railways, information & broadcasting, and electronics & IT Ashwini Vaishnaw

NEW DELHI: The Cabinet on Wednesday approved the “Container Manufacturing Promotion Scheme” (CMPS) with a budgetary outlay of Rs 10,000 crore, aimed at reducing India’s dependence on imports to meet domestic demand and ensuring supply security during crises. China currently accounts for over 95% of global container manufacturing; India aims to expand its container manufacturing to corner a 15% share of the global market.Announcing the decision, I&B minister Ashwini Vaishnaw said the scheme will run for 13 years. It was announced in the 2026-27 budget. The move is significant considering that India’s container traffic is projected to grow from around 24 million TEUs in 2024 to 175 million TEUs by 2047.In a post on X, PM Narendra Modi said, “The key benefits of the scheme include 10-fold increase in domestic capacity to 7.5 lakh TEUs annually. Financial support for new and existing manufacturers. Globally competitive, quality-certified containers. Reduced import dependence and stronger supply chains.“ Shipping minister Sarbananda Sonowal said the decision “marks a significant step towards building an aatmanirbhar and globally competitive container manufacturing ecosystem in India”.The scheme has three components. First, Interest Subvention Assistance to provide interest subvention of 3% per annum on eligible capital loans for establishment of greenfield container manufacturing facilities and brownfield expansion of existing container manufacturing capacities. Second, Operational Expenditure Assistance with a financial outlay of Rs 8,891 crorewill provide financial assistance for all containers manufactured as per global standards and sold, to bridge cost gap and improve the competitiveness of domestically manufactured containers.In addition, there will be testing and certification assistance to support establishment of common facilities.