New Delhi: The Union Cabinet on Wednesday approved the Container Manufacturing Promotion Scheme (CMPS), with a budgetary outlay of Rs 10,000 crore up to FY 2039-40, to establish a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply-chain resilience.
The scheme, announced in the Union Budget 2026-27, will support the establishment of new manufacturing facilities and the expansion of existing units. It aims to increase India's annual domestic container manufacturing capacity nearly ten-fold to 7.5 lakh TEUs (twenty-foot equivalent units).
According to an official statement, the scheme has several components, including interest subvention assistance, operational expenditure assistance, testing and certification assistance, and land leasing support.
Interest subvention assistance, with an allocation of Rs 859 crore, will provide a 3 per cent annual interest subsidy on eligible term loans taken by container manufacturers to set up greenfield facilities or expand existing manufacturing capacity.
Operational expenditure assistance, with an allocation of Rs 8,891 crore, will provide financial support for containers manufactured to global shipping standards and sold by eligible manufacturers. The assistance is intended to bridge the cost gap and improve the competitiveness of domestically manufactured containers.
The scheme is expected to establish an internationally competitive manufacturing base and position India as a potential global export hub for quality shipping containers. It is also projected to generate around 3,000 direct jobs and more than 50,000 indirect jobs, while supporting ancillary industries such as corner castings, specialised steel, wooden frames and paints.
Prime Minister Narendra Modi welcomed the Cabinet's approval, saying the scheme would give a major boost to India's maritime and logistics sector.
In a post on X, Modi highlighted the proposed ten-fold increase in domestic manufacturing capacity, financial support for new and existing manufacturers, and the production of quality-certified containers. He also said the scheme would help reduce import dependence and strengthen supply chains.
Information and Broadcasting Minister Ashwini Vaishnaw announced the Cabinet's approval at a press conference.
(With agency inputs from PTI)
