Cabinet clears Rs 10,000-cr scheme to boost domestic container manufacturing
New Delhi, Oct 28 (UNI) The union Cabinet on Wednesday approved a Rs 10,000-crore Container Manufacturing Promotion Scheme (CMPS) to build a globally competitive container manufacturing industry in India, reduce import dependence and strengthen maritime and logistics supply chains.
The scheme, which will remain in operation until the financial year 2039-40, will provide financial assistance to establish new manufacturing facilities and expand existing production units. Announcing the decision after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the initiative was aimed at developing domestic manufacturing capabilities and improving the competitiveness of Indian-made shipping containers in international markets.
The scheme was announced in the union Budget for 2026-27 as part of the government's broader push to strengthen domestic manufacturing and supply-chain security. The initiative aims to increase India's annual container manufacturing capacity nearly tenfold to 7.5 lakh twenty-foot equivalent units (TEUs), the standard measure of container capacity in the shipping industry. The proposed expansion is expected to create an internationally competitive manufacturing base and position India as a potential global export hub for shipping containers.
The scheme has a three-pronged financial assistance framework covering interest subvention, operational expenditure assistance, and testing and certification support. Of the total outlay, Rs 8,891 crore has been allocated for operational expenditure assistance, Rs 859 crore for interest subvention and Rs 150 crore for testing and certification facilities. Under the interest subvention component, eligible manufacturers will receive assistance at three per cent per annum on qualifying term loans taken to establish greenfield manufacturing facilities or expand existing brownfield units.
With an allocation of Rs 859 crore, the provision is intended to reduce borrowing costs and encourage fresh investment in domestic production capacity. The largest allocation, Rs 8,891 crore, will support operational expenditure for containers manufactured to international shipping standards and sold by eligible producers. The assistance is designed to narrow the cost gap between domestically manufactured containers and competing products, enabling Indian manufacturers to compete more effectively in both domestic and overseas markets.
The scheme also earmarks Rs 150 crore for testing and certification assistance, including the development of common testing facilities. These facilities will provide specialised infrastructure for procedures such as dynamic longitudinal impact testing, which assesses container performance and safety under demanding transportation conditions. The investment is expected to help manufacturers meet international quality and certification requirements.
The government expects the scheme to strengthen India's maritime infrastructure and logistics capabilities at a time when dependable supply chains and access to essential shipping equipment have become increasingly important for global trade. Shipping containers are central to international cargo movement, connecting ports, shipping networks and inland transportation systems. Expanding domestic production could reduce reliance on overseas suppliers and improve container availability for Indian exporters, importers, shipping companies and logistics operators. It could also stimulate a wider industrial ecosystem involving specialised steel, corner castings, wooden frames, paints and other components required for container manufacturing.
The scheme is projected to generate around 3,000 direct jobs and more than 50,000 indirect employment opportunities. These gains are expected to extend beyond manufacturing units to ancillary industries, component suppliers, transport services and other businesses associated with the container production and logistics value chain. By combining interest support, operational expenditure assistance and investment in testing infrastructure, the scheme seeks to address several challenges confronting domestic manufacturers, including the high initial cost of establishing production facilities, operating expenses and the need to meet international quality standards at competitive prices.
The long implementation period, extending to 2039-40, is intended to provide sustained support for the development and expansion of manufacturing capacity. The government's broader objective is to establish an internationally competitive container industry, strengthen supply-chain resilience, create employment and enable India to capture a larger share of the global shipping container market.
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