Container Manufacturing Promotion Scheme

Context

On 28 October 2026, the Union Cabinet approved the Container Manufacturing Promotion Scheme (CMPS) with an overall outlay of ₹10,000 crore up to FY 2039–40. The scheme seeks to expand domestic container manufacturing, reduce import dependence and strengthen India’s maritime supply-chain resilience.

Objective and Scheme Design

1. Core objective: CMPS aims to build a globally competitive container-manufacturing ecosystem by expanding domestic capacity and attracting investment across the value chain.
2. Greenfield and brownfield support: The scheme supports both new manufacturing units and expansion of existing facilities, enabling simultaneous capacity creation and scale-up.
3. Three support pillars: Assistance combines interest subvention, operational expenditure support, and testing/certification infrastructure, addressing financing, production competitiveness and quality assurance separately.
4. Scheme management: ₹100 crore is provided for administration, monitoring and capacity building, supporting effective implementation of the programme.

Investment and Production Support

1. Interest Subvention Assistance: With an allocation of ₹859 crore, eligible term loans receive 3% annual interest subvention, lowering financing costs for capacity creation.
2. Scale requirement: Greenfield projects must have at least 1 lakh TEUs annual capacity, while brownfield projects must add at least 25,000 TEUs, directing support towards projects of meaningful scale.
3. Operational Expenditure Assistance: ₹8,891 crore supports eligible containers manufactured to global shipping standards, helping improve cost competitiveness against imports.
4. Port-land support: Eligible projects can access land at major ports at 25% of the notified lease rate, reducing location costs and supporting manufacturing closer to maritime logistics hubs.

Localisation and Quality Infrastructure

1. Rising domestic content: Eligible manufacturers must maintain at least 70% local content through FY 2031–32, rising to 90% from FY 2032–33, encouraging deeper domestic sourcing.
2. Testing capability: ₹150 crore is allocated for common testing and certification facilities, strengthening domestic quality assurance and helping manufacturers meet global standards.
3. Ancillary-industry linkage: Higher localisation can increase demand for inputs such as specialised steel, corner castings, wooden frames and paints, deepening the domestic container supply chain.

Significance

1. Capacity expansion: Domestic manufacturing capacity is targeted to rise from about 70,000 TEUs to 7.5 lakh TEUs annually, substantially increasing domestic availability.
2. Supply-chain resilience: Greater domestic production can reduce reliance on imported containers and improve resilience during global logistics disruptions.
3. Employment generation: The scheme is expected to support around 3,000 direct and over 50,000 indirect jobs, particularly through linked manufacturing industries.
4. Export potential: Larger capacity, global standards and domestic certification can strengthen India’s competitiveness in the international container market.

FAQs

Q1. What is the total outlay of CMPS?
₹10,000 crore up to FY 2039–40.

Q2. What are the three major support components?
Interest subvention, operational expenditure assistance, and testing/certification support.

Q3. What is the interest subvention rate?
3% per annum on eligible term loans.

Q4. What is the local-content requirement?
At least 70% through FY 2031–32, rising to 90% from FY 2032–33.

Q5. What annual manufacturing capacity does the scheme target?
Around 7.5 lakh TEUs.