Diwali Bonanza: Cabinet clears 3% DA-DR hike, approves ₹10,000 cr Container Manufacturing Scheme
New Delhi, October 28: Central employees and pensioners have received a Diwali gift. The government has increased their dearness allowance (DA) and dearness relief (DR) by 3 percent. The increase will be considered effective from July 1 of this year. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal to this effect today.
Union Minister Ashwini Vaishnav gave this information in a press conference at the National Media Center. He said that this will benefit 48.54 lakh employees and 68.71 lakh pensioners. This will put an additional burden of Rs 10,016.10 crore on the government treasury every year.
“The Prime Minister’s Diwali gift to 48 lakh central government employees and 68 lakh pensioners is the increase in dearness allowance (DA) and dearness relief (DR),” Vaishnav said.
Cabinet approves Rs 10,000 crore Container Manufacturing Promotion Scheme
The Union Cabinet on Wednesday approved the Container Manufacturing Promotion Scheme with an outlay of Rs 10,000 crore to promote container manufacturing in the country. The scheme, which will be in effect until the financial year 2039-40, aims to develop a world-class container manufacturing ecosystem in India, reduce dependence on imports, and strengthen the supply chain. The government estimates that this will increase domestic container production capacity nearly tenfold to 7.5 lakh TEUs annually and create over 53,000 direct and indirect employment opportunities.
The Information and Broadcasting (I&B) Minister Ashwini Vaishnav, while announcing the Cabinet decisions, said that containers are a vital part of India’s and global trade. Almost all goods transported for export and import, except bulk commodities, are transported in containers. He noted that container manufacturing globally is concentrated in a few regions, with approximately 95 percent of production occurring in a single country.
Vaishnav said, “Containers are a vital component of trade in India and around the world. Except for bulk commodities, almost all goods transported for export or import are transported in containers. Globally, container manufacturing is highly concentrated, with 95 percent of production concentrated in a single country. Given this heavy dependence, shipping lines and shipping companies have long urged that other countries emerge and establish a strong position in container manufacturing. The Container Manufacturing Scheme approved today by the Prime Minister and the Cabinet is designed to position India as a new hub for container manufacturing in the coming years.”
The Minister stated that the scheme has a total outlay of ₹10,000 crore and has four components. He added that the first component will provide a three percent interest subsidy on eligible loans taken for capital investment. Additionally, significant assistance has been provided for testing and certification.
Vaishnav said, “The scheme has a total outlay of ₹10,000 crore and has four components. The first component is a three percent interest subsidy on capital investments. The second major assistance component relates to testing and certification. Containers used by shipping companies around the world can only be put into use after being tested according to prescribed procedures. They must meet international standards and be certified in accordance with international procedures. This process is expensive, and the scheme will provide special assistance to cover these certification costs.”
Under the scheme, ₹859 crore has been allocated for interest subsidy to set up new manufacturing units and expand the capacity of existing units. Eligible manufacturers will receive a 3% annual interest subsidy on eligible term capital loans taken for new units and expansion of existing units.
Additionally, ₹8,891 crore has been earmarked for operating expense support. This will provide financial assistance to eligible manufacturers on containers manufactured and sold in accordance with global maritime transport standards. The aim is to mitigate the cost challenges of domestically manufactured containers and make them competitive in the international market. ₹150 crore has been allocated for the development of testing and certification facilities. This will include the development of common facilities, such as testing the strength and impact tolerance of containers.
The government estimates that the scheme could increase India’s annual domestic container manufacturing capacity nearly tenfold to 750,000 TEUs. A TEU is the standard unit of measurement for container transportation, equivalent to one 20-foot container. This will enhance India’s potential to emerge as a global export hub for quality shipping containers.
The scheme is expected to create approximately 3,000 direct and over 50,000 indirect employment opportunities. It will also boost ancillary industries such as specialty steel, corner casting, wood structures, and paint.
It is noteworthy that the Container Manufacturing Scheme was announced in the Union Budget 2026-27. The government believes that this initiative will strengthen the supply chain of the maritime transport and logistics sector and help reduce dependence on imports for containers.
