Union Cabinet Approves Container Manufacturing Promotion Scheme to Boost India’s Shipping Industry

Container Manufacturing Promotion Scheme Latest News

Recently, the Union Cabinet has approved the Container Manufacturing Promotion Scheme (CMPS). 

About Container Manufacturing Promotion Scheme

• It aims to establish a globally competitive container manufacturing ecosystem by promoting domestic manufacturing and encouraging investment across the value chain.
• The initiative seeks to reduce import dependence and strengthen supply-chain resilience.
• It also supports new manufacturing facilities and expands existing container manufacturing units.
• The scheme provides assistance through major components: investment support, operational expenditure, and testing and certification.

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Components under Container Manufacturing Promotion Scheme

• Interest Subvention Assistance (ISA)
  • ISA provides a 3% per annum interest subvention on eligible term loans (capital loans) availed by container manufacturers to set up greenfield facilities and brownfield expansion of existing manufacturing capacity.
  • To qualify for this support, projects must meet the following criteria
    • Greenfield facilities must have an annual capacity of at least 1,00,000 Twenty-foot Equivalent Units  (TEUs)
    • Brownfield expansions must add at least 25,000 TEUs of annual capacity to be commissioned within three years of in-principle approval, and comply with global container standards.
• Operational Expenditure Assistance (OEA): The component provides a financial outlay of ₹8,891 crore to support containers manufactured as per global shipping standards and sold by eligible manufacturers.
  • Eligibility Criteria: To avail support, manufacturers must meet a minimum local-content requirement of 70% through FY 2031-32.
  • These criteria will further rise to 90% from FY 2032-33 to strengthen the domestic supply chain.
• Testing and certification assistance: A financial outlay of ₹150 crore has been allocated to support the setting up of common facilities such as Dynamic longitudinal impact.

Source: PIB