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Current Affairs

India to manufacture containers indigenously

Date: 05 March 2021 Tags: Miscellaneous

Issue

India has started the process of manufacturing cargo containers indigenously through two state-owned heavy-engineering companies.

 

Background

India has presently no capability to manufacture its own cargo containers. They are all manufactured by foreign players, especially Chinese.

 

Details

  • Braithwaite and Bharat Heavy Electricals Limited have received orders from Container Corporation of India (CONCOR), the largest stake-holder in container movements market.

  • China is the global leader in cargo containers and regularly obtains global tenders to manufacture and supply containers across the world. 

  • PSUs such as Braithwaite are focusing on creating the first prototype as there is no required component manufacturing in India.

  • Critical components such as corner casting and structural components like channels have not been manufactured before. It requires special designing.

  • Government orders of less than Rs 200 crore cannot be given global tender. India will have to be become self-reliant sometime in future.

  • Each container costs around Rs 2.5 lakh. The PSUs needed a big order so that the development process is profitable across the chain.

  • Containers are moved on road by trucks and also on rail. Rail journey costs less, reducing the cost of logistics.

  • The prototype has to be tested and certified by suitable agencies before they can be inducted and manufactured on large scale.