Union Cabinet approves ₹10,000 crore Container Manufacturing Scheme to boost India's production
The Union Cabinet has approved significant schemes to enhance India's manufacturing infrastructure and capacity. The ₹10,000 crore Container Manufacturing Promotion Scheme aims to increase container production substantially by 2040. Additionally, ...
By ET Bureau |
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The Union Cabinet approved schemes boosting container manufacturing, village development and sports goods production, strengthening India’s infrastructure and industrial capacity by 2040.
New Delhi: The Union Cabinet on Wednesday approved a ₹10,000 crore Container Manufacturing Promotion Scheme to establish a globally competitive container manufacturing ecosystem in India, according to an official statement.
The Cabinet also approved the ₹7,395.55 crore Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) and the Khelo India Sports Goods Manufacturing Scheme, with an outlay of ₹1,856.67 crore.
The container manufacturing scheme will run for 13 years and aims to increase annual domestic manufacturing capacity nearly tenfold to 750,000 twenty-foot equivalent units (TEUs) by 2040. The scheme was announced in the 2026-27 budget.
According to official estimates, India's container traffic is projected to grow from around 24 million TEUs in 2024 to 175 million TEUs by 2047.
Railways minister Ashwini Vaishnaw said the scheme would support new manufacturing facilities as well as the expansion of existing container manufacturing units.
"This scheme is a strong step to reduce import dependence," ports, shipping and waterways minister Sarbananda Sonowal said.
The scheme has an outlay of ₹8,891 crore for operational expenditure assistance. It provides financial assistance for containers manufactured to global shipping standards and sold by eligible manufacturers. "It would also help bridge the cost gap and improve the competitiveness of domestically manufactured containers," the statement said.
Interest subvention assistance of 3% a year will also be offered on term loans taken by container manufacturers to set up greenfield facilities or expand existing manufacturing capacity. An outlay of ₹859 crore has been earmarked for this component.
The Cabinet also approved PM VGSY for implementation from 2026-27 to 2030-31, in line with the 16th Finance Commission period, according to the statement. The scheme comprises a central share of ₹4,869.48 crore and a state share of ₹2,526.07 crore.
The Khelo India Sports Goods Manufacturing Scheme will run from 2026 to 2033-34.
The Cabinet also approved the ₹7,395.55 crore Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) and the Khelo India Sports Goods Manufacturing Scheme, with an outlay of ₹1,856.67 crore.
The container manufacturing scheme will run for 13 years and aims to increase annual domestic manufacturing capacity nearly tenfold to 750,000 twenty-foot equivalent units (TEUs) by 2040. The scheme was announced in the 2026-27 budget.
According to official estimates, India's container traffic is projected to grow from around 24 million TEUs in 2024 to 175 million TEUs by 2047.
Railways minister Ashwini Vaishnaw said the scheme would support new manufacturing facilities as well as the expansion of existing container manufacturing units.
"This scheme is a strong step to reduce import dependence," ports, shipping and waterways minister Sarbananda Sonowal said.
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The scheme has an outlay of ₹8,891 crore for operational expenditure assistance. It provides financial assistance for containers manufactured to global shipping standards and sold by eligible manufacturers. "It would also help bridge the cost gap and improve the competitiveness of domestically manufactured containers," the statement said.
Interest subvention assistance of 3% a year will also be offered on term loans taken by container manufacturers to set up greenfield facilities or expand existing manufacturing capacity. An outlay of ₹859 crore has been earmarked for this component.
The Cabinet also approved PM VGSY for implementation from 2026-27 to 2030-31, in line with the 16th Finance Commission period, according to the statement. The scheme comprises a central share of ₹4,869.48 crore and a state share of ₹2,526.07 crore.
The Khelo India Sports Goods Manufacturing Scheme will run from 2026 to 2033-34.
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