Cabinet Approves Rs 10,000 Crore Container Manufacturing Scheme
The Union Cabinet cleared the scheme on 28 October 2026, with capacity targeted at 7.5 lakh TEUs a year.
Key Takeaways
- The Union Cabinet approved the scheme on 28 October 2026.
- The outlay is Rs 10,000 crore up to FY 2039-40.
- Annual capacity is targeted at 7.5 lakh TEUs, from about 70,000 TEUs.
- Interest subvention is Rs 859 crore, operational assistance is Rs 8,891 crore and testing is Rs 150 crore.
- The government expects about 3,000 direct and over 50,000 indirect jobs.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Container Manufacturing Promotion Scheme on 28 October 2026. The scheme has an outlay of Rs 10,000 crore up to FY 2039-40 and was announced in the Union Budget 2026-27.
It aims to raise India's annual container manufacturing capacity about tenfold, to 7.5 lakh TEUs, from about 70,000 TEUs today. Support comes as interest subvention, operational expenditure assistance and testing and certification funding.
Container Manufacturing Promotion Scheme at a glance
| Detail | Value |
|---|---|
| Approved by | Union Cabinet, chaired by Prime Minister Narendra Modi |
| Date of approval | 28 October 2026 |
| Total outlay | Rs 10,000 crore up to FY 2039-40 |
| Capacity target | 7.5 lakh TEUs a year, from about 70,000 TEUs |
| Interest subvention assistance | Rs 859 crore, at 3% a year on eligible term loans |
| Operational expenditure assistance | Rs 8,891 crore |
| Testing and certification assistance | Rs 150 crore |
| Scheme management and capacity building | Rs 100 crore |
| Projected jobs | About 3,000 direct and over 50,000 indirect |
How the three support components work
Interest subvention assistance of Rs 859 crore gives container makers a 3% a year interest subvention on eligible term loans for new (greenfield) plants and expansion of existing (brownfield) capacity. Greenfield plants must have an annual capacity of at least 1 lakh TEUs, and brownfield expansions must add at least 25,000 TEUs a year.
Operational expenditure assistance of Rs 8,891 crore backs containers made to global shipping standards and sold by eligible manufacturers. It pays Rs 49,500 for each 20-foot container and Rs 86,625 for each 40-foot container, and the required domestic content rises from 70% to 90%. Testing and certification assistance of Rs 150 crore is meant for common facilities such as dynamic longitudinal impact testing.
Where containers stand in India's maritime push
Container capacity is measured in twenty-foot equivalent units, or TEUs.
Major ports can also support manufacturers with land leased at 25% of the notified rate. An Inter-Ministerial Steering Committee chaired by the Secretary of the Ministry of Ports, Shipping and Waterways will approve the guidelines and sanction the assistance.
| When | What happened |
|---|---|
| Union Budget 2026-27 | The scheme for container manufacturing is announced with an outlay of Rs 10,000 crore |
| July 2026 | India's first made-in-India export-import shipping container is unveiled |
| 28 October 2026 | The Union Cabinet approves the Container Manufacturing Promotion Scheme |
What the government says the scheme will deliver
The government said the scheme aims to build a globally competitive container manufacturing ecosystem, reduce import dependence and strengthen supply-chain resilience. It is expected to create about 3,000 direct jobs and over 50,000 indirect jobs, and to benefit ancillary industries such as corner castings, specialised steel, wooden frames and paints.
Where the container scheme stands after Cabinet approval
The Container Manufacturing Promotion Scheme now has a Rs 10,000 crore outlay running up to FY 2039-40, with three years to set up facilities and ten years of production support. It targets 7.5 lakh TEUs of annual capacity, against about 70,000 TEUs today. The government said it expects about 3,000 direct and over 50,000 indirect jobs from the scheme.
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Frequently Asked Questions
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When was the Container Manufacturing Promotion Scheme approved?
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How much operational expenditure assistance does the scheme provide?
How much is set aside for testing and certification?
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