Lok Sabha Question No. 1964 (UNSTARRED), answered on 2024-12-06
Subject: Indigenous Production of Container Boxes
Ministry: PORTS, SHIPPING AND WATERWAYS
Asked by: Ms. S Jothimani, Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF PORTS, SHIPPING AND WATERWAYS

## LOK SABHA UNSTARRED QUESTION NO. 1964

ANSWERED ON 06.12.2024

## INDIGENOUS PRODUCTION OF CONTAINER BOXES

1964.  MS. S JOTHIMANI:

SHRI SRIBHARAT MATHUKUMILLI:

Will the Minister of PORTS, SHIPPING AND WATERWAYS be pleased to state: पȅन , पोत पįरवहन और जलमागŊ मंũी

- (a) the details of containers manufactured in India over the past five years including the cost of per container, year-wise; (b) the status of availability of containers at each major port in the country along with the number of containers currently leased from other countries, port-wise including VPT; (c) whether  the  Government  has  acknowledged  the  shortage  of  containers  in  the country; (d) if  so,  the  extent  to  which  this  shortage  has  impacted  freight  costs  and  the strategic role of Indian ports in global logistics; (e) whether  the  Government  proposes  any  initiatives  to  promote  the  indigenous production of container boxes in the country to boost trade; (f) if  so,  the  incentives  provided  by  the  Government  to  boost  domestic/indigenous production  of  container  boxes,  including  details  of  direct  subsidies  and  viability  gap funding offered; and whether  the  Government  proposes  to  introduce  Production  Linked  Incentives (PLI) in the production of containers and if so, the details thereof and if not, the reasons

## ANSWER

## MINISTER OF PORTS, SHIPPING AND WATERWAYS (SHRI SARBANANDA SONOWAL)

(a) to (g) Container  Corporation  of  India  Limited  (CONCOR),  which  is  one  of  the major container operators in India, is sourcing the containers from Indian manufacturers.  Total  orders  placed  by  CONCOR  since  2021  are  20,890  containers. However, total orders delivered till November, 2024 are 14,607 containers.

- (g) therefor?

There  is  limited  demand  of  containers  manufactured  in  India  and  accordingly limited  manufacturing  capacity  for  containers  in  India.  The  container  manufacturing industry is dominated by economies of scale that favor established manufacturers from other countries, who benefit from lower production costs, advanced technologies, and immediate cargo loading opportunities.

The long voyage time due to ships taking longer routes through Cape of Good Hope  has  impacted  global  trade,  including  Indian  exports.  This  has  resulted  in increased time for goods to reach international markets. No shortage of containers has been reported on account of the longer voyage time or the Red Sea conflicts issues and Russia-Ukraine War. Regular interactions are done with shipping lines, port/ terminal, and export/import associations to assess for possible interventions.

For the domestic shipping sector, following policies are there:

- i. Right  of  First  Refusal  (RoFR):  It  grants  Indian-flagged  vessels  the  priority  to match  the  lowest  bid  offered  by  foreign-flagged  vessels  thereby  raising  the demand for Indian-flagged vessels.
- ii. Subsidy Scheme for the Promotion of Flagging of Merchants Ships in India: By providing subsidy support to Indian shipping companies in global tenders floated by  Ministries  and  Central  Public  Sector  Enterprises  (CPSEs).  The  rate  of subsidysupport  is  based  on  age  of  the  vessel.  The  scheme  encourages entrepreneur to register ships under Indian flag.

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