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.
- 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 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 has been allocated to support the setting up of common facilities for testing, including dynamic longitudinal impact testing.
