Following the budget announcement by Finance Minister Nirmala Sitharaman, the Cabinet of Ministers approved the Container Manufacturing Promotion Scheme (CMPS) worth Rs 10,000 crore on Wednesday. The goal of this program is to transform India into a competitive market for this vital element of global trade.
This scheme will provide financial support to domestic container manufacturers and will be effective until 2039-40. It aims to create a globally competitive ecosystem for container production in India, reduce dependence on imports, and strengthen supply chain resilience. The program is designed to support both new production capacities and the expansion of existing enterprises.
Indian traders have faced high freight costs following global crises since 2023. During these crises, container rental and purchase rates fluctuated, and global shipping lines primarily procure containers from China, which offers a significant price advantage.
According to industry sources, there is a substantial price difference between a container produced in India and one manufactured in China. One manufacturer reported that a 20-foot equivalent unit (TEU) Chinese container costs around US$1,700, whereas an Indian container would cost no less than US$2,200–2,400.
To bridge these gaps, the scheme provides assistance in the form of Interest Subsidy Assistance (ISA) with financial outlay of Rs 859 crore. This aid will subsidize interest at 3% per annum on relevant term loans (capital loans) taken by container manufacturers for setting up new production facilities (greenfield) and expanding existing capacities (brownfield).
Furthermore, the scheme will provide Operational Expenditure Assistance (OEA) amounting to Rs 8,891 crore. These funds are intended to provide financial support to all containers manufactured according to global shipping standards and sold by the respective manufacturers.
In a statement, the Cabinet emphasized that this will help narrow the cost gap and enhance the competitiveness of domestic containers. The government hopes that sustained support will enable steel producers to increase capacity for producing special steel required for containers at a lower cost.
The scheme also includes testing and certification assistance worth Rs 150 crore to support the creation of common facilities, such as dynamic longitudinal impact testing.
Through this program, the Centre intends to increase the annual domestic production capacity of containers by approximately ten times, reaching a figure of 750,000 TEUs. Additionally, there is potential to position India as a global export hub for quality marine containers.
It is expected that this scheme will create around 3,000 direct jobs and over 50,000 indirect jobs, while supporting allied industries such as corner brackets, specialized steel, wooden frames, and paints.