The production-linked incentive (PLI) scheme for funding Rs 11,000 crore to manufacture shipping grade containers in India, recently announced by the Ministry of Ports, Shipping and Waterways, is likely to be shelved after facing a backlash during cabinet discussions.
“The launch timing, length, and quantum of the scheme is being reconsidered as the global shipping and trade industry is facing a downtrend at the moment,” the Ministry of Ports shared.
The initial plan was to launch the scheme in 2023-24, but for now, the proposal will be reworked and considered at the next cabinet briefing.
The cabinet committee on economic affairs had highlighted three major issues, an overflow of containers in the shipping industry, falling global exports, and the slow recovery of global supply chains, which may hinder demand for shipping containers for the next two years. “Discussions at the cabinet meeting highlighted the need for the PLI scheme to be of shorter tenure, with the aim of shipping grade container capacity to be established in India by 2025-26.”
