India has approved a INR100bn ($1.05bn) programme to massively expand domestic shipping container manufacturing, targeting a tenfold increase in annual capacity as New Delhi seeks to challenge China’s near-monopoly over the industry.
The country’s cabinet approved the Container Manufacturing Promotion Scheme yesterday, turning a proposal announced in February’s national budget into a 13-year industrial development programme.
The initiative aims to increase India’s annual container manufacturing capacity from approximately 70,000 teu today to 750,000 teu, potentially establishing the country as a significant international supplier of shipping containers.
Chinese manufacturers currently account for more than 95% of global dry freight container production and virtually the entire refrigerated container market. India hopes to erode that dominance through a combination of production subsidies, subsidised financing and investment in manufacturing infrastructure.
The programme includes INR88.91bn in financial assistance for containers manufactured to international standards, alongside INR8.59bn in support for financing new factories and expanding existing production facilities. Manufacturers will be eligible for a 3% annual interest subsidy on qualifying loans. Additional funding will support testing and certification facilities, while manufacturers establishing operations at major ports will receive preferential land leasing arrangements.
The government is targeting new factories with annual capacity of at least 100,000 teu, while existing manufacturers must expand capacity by at least 25,000 teu to qualify for financing support. Domestic content requirements will progressively increase from 70% to 90%. The programme runs from the 2027-28 financial year through to 2039-40, allowing three years for establishing facilities followed by ten years of production support.
The initiative also complements India’s plans to establish Bharat Container Shipping Line, a state-backed carrier being developed by Shipping Corporation of India, CONCOR and several other government-controlled maritime organisations.
Source: Splash247
