India Approves Rs 10,000 Crore Scheme to Boost Domestic Container Production
The Union Cabinet approved a 13-year, Rs 10,000 crore Container Manufacturing Assistance Scheme aimed at expanding local container factories, reducing imports and creating thousands of jobs.
New Delhi – The Union Cabinet gave the green light to a Rs 10,000 crore Container Manufacturing Assistance Scheme (CMAS) that will run for 13 years, ending in fiscal year 2039-40. Announced in the Union Budget 2026-27, the programme seeks to develop a domestic ecosystem for shipping containers, cutting India’s reliance on imports of roughly two million empty units each year.
The scheme provides four types of support: a Rs 859 crore interest-subvention for term loans, Rs 150 crore for testing and certification facilities, concessional land-leasing arrangements through major port authorities, and Rs 8,891 crore in operational-expenditure assistance to improve cost competitiveness. Assistance rates are set at Rs 49,500 per 20-foot container and Rs 86,625 per 40-foot container, with lower rates for specialised units.
Eligibility criteria require new (greenfield) plants to have a capacity of at least 100,000 TEUs and expansion (brownfield) projects to add at least 25,000 TEUs, with commissioning required within three years of approval. Participants must meet a minimum 70% local-content requirement until FY 2031-32, rising to 90% thereafter.
The government estimates the programme will generate about 3,000 direct jobs and more than 50,000 indirect jobs across manufacturing and related sectors. The move aligns with broader initiatives such as PM Gati Shakti, the National Logistics Policy and Sagarmala, and follows recent developments like the launch of a domestically built container for A.P. Moller-Maersk and a subsequent order of 1,000 Made-in-India containers from the DCM Shriram Group.
“The scheme is designed to build a robust domestic shipping-container supply chain, reduce exposure to global market fluctuations and create employment opportunities,” a government spokesperson said.
China currently supplies 90-97% of global container capacity, giving it a cost advantage of 30-40% over Indian manufacturers. By fostering local production, the programme aims to narrow that gap and strengthen India’s position in international trade, which the United Nations Conference on Trade and Development notes carries about 80% of global merchandise volume by sea.