Union Cabinet Clears ₹10,000 Crore Container Scheme
The government has earmarked ₹859 crore for interest subvention on eligible term loans: Reports
NEW DELHI: The Union Cabinet on Wednesday approved the Container Manufacturing Promotion Scheme with an outlay of ₹10,000 crore to boost domestic production of shipping containers and improve the industry's global competitiveness.
According to an official statement, the scheme comprises four components — interest subvention, testing and certification assistance, land leasing support and operational expenditure assistance.
To qualify, new container manufacturing facilities must have an annual production capacity of at least one lakh twenty-foot equivalent units (TEUs), while existing facilities undertaking expansion must add a capacity of at least 25,000 TEUs.
The facilities must be commissioned within three years of receiving in-principle approval and comply with international container standards.
The government has earmarked ₹859 crore for interest subvention on eligible term loans obtained by manufacturers to establish new facilities or expand existing production capacities.
Another ₹8,891 crore has been allocated as financial assistance for containers manufactured according to global shipping standards and sold by eligible manufacturers.
The assistance is intended to bridge the production cost gap and make domestically manufactured containers more competitive in international markets.
The scheme also provides ₹150 crore for testing and certification facilities, including common infrastructure for dynamic longitudinal impact testing and other quality assessments.
The initiative aims to strengthen India's container manufacturing ecosystem and reduce production cost disadvantages faced by domestic manufacturers.
