Union Cabinet approves ₹10,000 crore container manufacturing plan to increase capacity tenfold and create 53,000 jobs | Today’s news
The Container Manufacturing Support Scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday. The new regime is associated with budget expenditures in the amount of ₹10,000 crore till FY 2039-40, according to ANI.
The Container Manufacturing Promotion Program is aimed at increasing India’s annual container manufacturing capacity almost tenfold to 7.5 lakh twenty-foot equivalent units (TEU).
About the container production support program
According to the official version, this system is expected to create a globally competitive container manufacturing ecosystem in India. It is likely to reduce import dependency and strengthen supply chain resilience while setting up new manufacturing plants and further expanding existing units.
At a press conference after the Cabinet meeting, Union Minister Ashwini Vaishnaw commented on the strong concentration of global container manufacturing in one country.
“…containers are a key component of trade in India and around the world. Almost all goods that are transported for export or import, except bulk commodities, are transported in containers,” Vaishnaw was quoted as saying by ANI.
Speaking about the need to diversify global container production, he added: “Container production is highly globally concentrated, with 95% of production taking place in a single country.”
“Given this high concentration, shipping lines and shipping companies have been demanding that another country emerge and establish a strong position in container manufacturing,” he said.
Vaishnaw further said, “The Container Manufacturing Scheme approved by the Prime Minister and the Cabinet today has been designed to help India become a new destination for container manufacturing in the coming years.”
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Know the components of a diagram
According to the PIB version, the Container Manufacturing Promotion Scheme will have three main components – Interest Subsidy Assistance (ISA), Operating Expenditure Assistance (OEA) and Testing and Certification Assistance.
Interest grant aid
Within the ISA component ₹859 million crowns were allocated to provide a 3% interest discount on loans for opening production units on green fields or expanding the capacities of brownfields.
Interest grant aid
The OEA folder has been allocated ₹8,891 crore as financial assistance to subsidize local containers manufactured to global shipping standards and sold by eligible manufacturers. The aid is said to bridge the cost gap and improve domestic competitiveness.
Help with testing and certification
Apart from these, ₹150 million has been allocated for testing and certification assistance, including the establishment of joint container testing and safety certification facilities.
The government remains hopeful the program is expected to create around 3,000 direct jobs and more than 50,000 indirect jobs, while supporting ancillary industries including corner castings, specialist steel, timber framing and paint.
The initiative was announced in the Union budget earlier this year.
