The 13-year scheme aims to strengthen India’s container manufacturing industry, reduce import dependence and support new manufacturing facilities through financial incentives.
Highlights
- Cabinet approves Rs 10,000 crore Container Manufacturing Promotion Scheme.
- Scheme to run for 13 years, until FY 2039-40.
- Four components include interest subsidy, testing support, land leasing and operational assistance.
- Rs 859 crore allocated for 3% annual interest subsidy on term loans.
- New manufacturing units must have an annual capacity of at least 1 lakh TEUs.
- Rs 150 crore earmarked for testing and certification infrastructure.
New Delhi, October 28, 2026: The Union Cabinet has approved the Rs 10,000 crore Container Manufacturing Promotion Scheme to strengthen India’s domestic container manufacturing industry and reduce dependence on imports. The initiative will support manufacturers through financial incentives, infrastructure development and operational assistance.
According to the details presented in the Cabinet briefing, the scheme will have a total financial outlay of Rs 10,000 crore over 13 years, extending until FY 2039-40.
The initiative is expected to encourage investment in container manufacturing, strengthen domestic production capabilities and improve India’s competitiveness in the global shipping and logistics industry.
Four Major Components of the Scheme
The government has introduced four components under the scheme to support manufacturers at different stages of production.
These include Interest Subvention Assistance, Testing and Certification Assistance, Land Leasing Support and Operational Expenditure Assistance.
Under the Interest Subvention Assistance component, the government has allocated Rs 859 crore to provide a 3% annual interest subsidy on term loans taken by eligible manufacturers.
This financial support is intended to reduce borrowing costs and encourage companies to invest in new container manufacturing facilities.
Minimum Production Capacity Requirements
The scheme also introduces specific manufacturing capacity requirements for companies seeking financial assistance.
New greenfield manufacturing facilities must have an annual production capacity of at least 1,00,000 Twenty-foot Equivalent Units (TEUs).
Meanwhile, existing brownfield facilities planning capacity expansion must add at least 25,000 TEUs annually.
Both types of facilities must be commissioned within three years of receiving in-principle approval and comply with international container manufacturing standards.
Rs 150 Crore for Testing and Certification
The government has earmarked Rs 150 crore, approximately 1.5% of the scheme’s total allocation, for testing and certification assistance.
This funding will help establish common testing facilities and support manufacturers in meeting international safety and quality standards.
Testing infrastructure will include facilities for assessing container strength and resistance to longitudinal impacts.
Reducing Dependence on Imported Containers
India’s shipping and logistics sectors depend significantly on container availability for international trade.
Earlier government information indicated that the initiative aims to expand domestic container manufacturing capacity to approximately 7.5 lakh TEUs annually, strengthening India’s maritime supply chain. (Press Information Bureau)
The scheme is also expected to encourage investments in steel fabrication, logistics equipment and associated manufacturing industries.
By developing a competitive domestic container manufacturing ecosystem, the government aims to strengthen India’s position in international trade while supporting the broader Make in India initiative.
