India Approves ₹100 Billion Container Manufacturing Support Scheme

en.Wedoany.com Reported - On October 28, the Union Cabinet of India officially approved a container manufacturing promotion scheme totaling ₹100 billion to support the construction of new domestic container factories, the expansion of existing production facilities, and the development of testing and certification facilities. The scheme covers the period from fiscal year 2027–2028 to fiscal year 2039–2040, with a three-year facility construction period and a ten-year production support period, aiming to increase India's annual container manufacturing capacity from approximately 70,000 TEUs to 750,000 TEUs.

Under the funding arrangements approved by the Indian government, ₹8.59 billion in dedicated funds will be used for interest subsidies on capital loans for manufacturing enterprises. Eligible new container factories must have an annual production capacity of at least 100,000 TEUs, while expansion projects at existing factories must add at least 25,000 TEUs of annual production capacity. Eligible production facilities should be completed and put into operation within three years after in-principle approval.

The scheme also allocates ₹88.91 billion to provide operating subsidies to qualified manufacturers that produce and sell containers meeting international standards. Among these, 20-foot standard containers receive a subsidy of ₹49,500 per unit, 40-foot containers receive ₹86,625 per unit, and 20-foot special containers receive ₹37,125 to ₹74,250 per unit depending on type.

Production subsidies are subject to localization ratio thresholds: a localization rate of at least 70% is required for fiscal year 2031–2032 and earlier, rising to 90% from fiscal year 2032–2033 onward. The relevant subsidies apply to container manufacturers and products that comply with the scheme's provisions.

With respect to testing and certification facilities, the Indian government has allocated ₹1.5 billion to support the construction of shared testing facilities, including longitudinal dynamic impact testing equipment for containers and related testing infrastructure. This dedicated funding is set up separately from the interest subsidies on loans for new factories and the operating subsidies for product manufacturing.