The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the ‘Container Manufacturing Promotion Scheme’ (CMPS) on Wednesday. A budget of ₹10,000 crore has been allocated for this scheme, spanning up to the financial year 2039-40. Its objective is to develop a globally competitive container manufacturing ecosystem in India, reduce dependence on imports, and strengthen supply chains.
What are the benefits of the scheme?
According to the Cabinet, the scheme is expected to generate approximately 3,000 direct jobs and over 50,000 indirect jobs. It will also provide a boost to ancillary industries such as those producing corner castings, specialized steel, wooden frames, and paints. The scheme will support the establishment of new manufacturing units as well as the expansion of existing ones.
Consequently, India’s annual domestic container manufacturing capacity is projected to increase nearly tenfold, reaching 7.5 lakh TEUs. The country could emerge as a global export hub for high-quality shipping containers, further strengthening maritime and logistics supply chains.
Key features of the scheme
Announced in the Union Budget for 2026-27, the scheme comprises three main components:
– Interest Subvention Assistance (ISA): A provision of ₹859 crore. Container manufacturers will receive an annual interest subsidy of 3 percent on term loans taken for setting up new (greenfield) units or expanding existing (brownfield) units.
– Operational Expenditure Assistance (OEA): A budget of ₹8,891 crore. Financial assistance will be provided for containers manufactured in accordance with global shipping standards and sold by eligible manufacturers. This will help bridge cost gaps and enhance the competitiveness of domestically produced containers.
– Testing and Certification Assistance: ₹150 crore. This will support the establishment of common facilities, such as those required for dynamic longitudinal impact testing. The official statement says that this scheme is a significant step towards making India self-reliant in the field of container manufacturing.
