Govt Considers Production-Linked Incentive Scheme For Container Manufacturing
Date
7/10/2024 2:19:31 PM
(MENAFN- KNN India)
New Delhi, Jul 10 (KNN) The Indian government is contemplating a production-linked incentive (PLI) scheme for shipping-grade containers to bolster domestic production and reduce dependence on Chinese imports, according to sources familiar with the matter.
The proposed initiative comes amid concerns over a global container shortage exacerbated by the Russia-Ukraine conflict and aims to address India's reliance on China, which currently dominates 90-95 per cent of the global market for shipping containers.
A high-level committee has been formed to promote local container manufacturing under a PLI and cluster-based manufacturing system. The scheme could potentially be announced in the upcoming fiscal year 2024-25 budget.
"A PLI scheme is under consideration. The incentive amount will be determined based on requirements to attract private players and make India self-sufficient in container manufacturing," a government official stated, speaking on condition of anonymity.
The need for a stable container supply is crucial for India's efforts to enhance domestic cargo transportation via inland waterways and coastal shipping.
The scheme aims to address the 'structural weakness' that has impacted goods exports since the onset of the COVID-19 pandemic.
While a previous proposal for an Rs 11,000-crore container PLI scheme was put on hold due to a perceived glut in container demand, officials argue that preparedness for unexpected surges in demand is essential.
The earlier plan aimed to manufacture 20- and 40-foot containers of various configurations, with the goal of capturing at least 10 per cent of the demand from global liners.
To address immediate concerns, the government has taken steps such as increasing container imports and releasing abandoned, detained, or seized containers.
Bhavnagar in Gujarat has been identified as a hub for domestic container manufacturing, with some companies already commencing operations.
(KNN Bureau)
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