Centre Outlays ₹10,000 Cr To Boost Container Manufacturing Capacity, Cut Import Dependence

The government on Wednesday approved a ₹10,000-crore Container Manufacturing Promotion Scheme (CMPS) to expand domestic production, reduce dependence on imports and strengthen supply-chain resilience.

The scheme, which runs until FY 2039-40, aims to increase India’s annual container manufacturing capacity nearly tenfold to 7.5 lakh twenty-foot equivalent units (TEUs), according to a government statement.

Announced in the Union Budget 2026-27, the scheme will support new manufacturing facilities and the expansion of existing units. It comprises interest subsidies, operational cost assistance, testing and certification support, and land leasing concessions.

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 sectors producing specialised steel, corner castings, wooden frames and paints.

₹8,891 Cr For Operational Support

Under the scheme, the largest component is operational expenditure assistance, with an allocation of ₹8,891 crore to help domestically manufactured containers compete on cost with international alternatives.

Manufacturers will receive assistance of ₹49,500 per 20-foot container and ₹86,625 per 40-foot container. Support for specialised 20-foot containers will range from ₹37,125 to ₹74,250, according to the press briefing by Union Minister Ashwini Vaishnaw.

Eligible units must meet global shipping standards and comply with domestic value-addition requirements. Local content must account for at least 70% of production until FY 2031-32, increasing to 90% from FY 2032-33. The requirements are intended to encourage the development of domestic suppliers and ancillary industries.

Interest Subsidy, Concessions, Testing

The scheme earmarks ₹859 crore for interest subvention assistance, offering a 3% annual subsidy on eligible term loans used to establish greenfield facilities or expand existing manufacturing capacity.

Greenfield projects must have an annual capacity of at least 1,00,000 TEUs, while brownfield expansions must add at least 25,000 TEUs annually. The facilities must be commissioned within three years of receiving in-principle approval and meet global container standards, the government said.

The government has allocated ₹150 crore for testing and certification facilities, including common infrastructure for dynamic longitudinal impact testing. The support is intended to help manufacturers meet international standards.

The scheme also provides for concessional land leasing at major ports. Major Port Authorities may lease land to container manufacturing units at 25% of the applicable rate, with the government relaxing the Policy Guidelines for Land Management to facilitate this provision.