Budget 2024: Govt working on PLI scheme for making shipping-grade containers
₹11,000 crore container PLI scheme to be spread over a nine-year period, beginning 2024-25. The plan was to manufacture 20 feet and 40 feet length containers of various configurations. The aim of this scheme was to raise domestic manufacturing of containers so that India could potentially compete with China over it and garner at least 10% of demand from global liners.
“A proposal for it will be sent to the Finance Ministry soon," the official said. The Economic Survey for FY22 highlighted how the container shortage is impacting trade. It said covid-19-related restrictions on international trade in 2020 affected container movement.
The prolonged partial closure of ports across the world created a glut of containers in some ports and an acute shortage in others. At the same time, because of widespread manufacturing delays, not enough containers were made, said the Economic Survey released by the government. “With the global economy starting to recover since early 2021, containers, which were stuck at various storage points are not being sent back to service fast enough, resulting in a skewed demand-supply situation for shipping containers, leading to very high shipping rates.
During April-September 2021, India spent $14.8 billion on transport services imports, or 65% higher than last year." said the Survey. The Centre has taken a few steps to ease the supply shortage, such as increasing the import of empty containers, releasing abandoned, detained or seized containers, and raising duty-free ‘stay’ of containers. To increase domestic container manufacturing, the government has identified Bhavnagar in Gujarat as a hub, and a few companies have already started operations.
Read more on livemint.com
