The Container Manufacturing Promotion Scheme (CMPS)
Context: The Union Cabinet approved the Container Manufacturing Promotion Scheme (CMPS), with a total budgetary outlay of ₹10,000 crore through FY 2039–40.
About The Container Manufacturing Promotion Scheme (CMPS):
What it is?
A long-term central industrial and maritime promotion scheme providing financial, interest-subvention, and testing assistance to set up greenfield container plants and expand brownfield manufacturing capacities to match global maritime standards.
Nodal Ministry: Ministry of Ports, Shipping and Waterways (MoPSW), Government of India.
Aim: To establish India as a self-reliant container manufacturing and export hub, reducing import dependence, foreign exchange outflows and China’s dominance in global container supply.
Key Features of the Scheme:
- Tenfold Capacity Expansion: Targets increasing India’s annual container manufacturing capacity from 70,000 TEUs to 7.5 lakh TEUs, strengthening domestic production.
- Operational Expenditure Assistance: Allocates ₹8,891 crore in production-linked assistance to offset the 30–40% cost disadvantage faced by Indian manufacturers.
- Interest Subvention Assistance: Provides ₹859 crore for a 3% annual interest subsidy on eligible loans for new manufacturing units and capacity expansion.
- Testing and Certification Infrastructure: Allocates ₹150 crore for domestic testing facilities, including impact testing, reducing dependence on overseas ISO/CSC certification facilities.
- Port Land Concessions and Localisation: Offers concessional port land leases at 25% of applicable rates and mandates increasing domestic content from 70% to 90% by FY33.
Significance:
- Reduces dependence on imported containers, mitigating shipping disruptions, container shortages and volatile leasing costs, while supporting BCSL.
- Expected to generate 3,000 direct and 50,000 indirect jobs, boosting demand for steel, castings, coatings and marine-grade materials.
