The right scheme for your to turn cold storage infrastructure into a growth advantage
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Cold Storage Subsidy Scheme
Like the various other sectors and schemes defined by the Gujarat government, the Integrated Cold Chain and Value Addition Infrastructure Scheme is also one of the offers from them. It is given as a support to those who are into the creation of infrastructure across the entire supply chain. This involves a robust chain of pre-cooling units, grading, multi-temperature cold storage, and CA storage, to packing lines, blast freezing/IQF systems, refrigerated transport and distribution hubs for perishables like dairy, meat, poultry and marine produce (except shrimp). The subsidy will help the businesses to create a value chain that can work in tandem from the farm gate to the consumer and eventually reducing post-harvest losses. When done properly, it will improve the food quality and give market access.
The subsidy will be applicable to anyone – whether individuals and/or organizations including proprietorships, partnerships, companies, cooperatives, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), NGOs and Central/State PSUs, are all eligible to apply for the scheme subject to guidelines.
Key components of the scheme
The scheme aims to facilitate the establishment of a strong cold chain facility for agricultural, horticultural,dairy, fish & marine, poultry & meat products by establishing linkage from farm gate to the consumer, end to end, to reduce losses through efficient storage, transportation and minimal processing. The different components of the Cold Chain projects are as under:
- Minimal Processing Centre at the farm level and centres is to have facilities for weighing, sorting, grading waxing, packing, pre-cooling, Control Atmosphere (CA)/ Modified Atmosphere (MA) cold storage, normal storage and Individual Quick Freezing(IQF).
- Mobile pre-cooling vans and reefer trucks.
- Distribution hubs with multi products and multi Control Atmosphere (CA)/ Modified Atmosphere(MA) chambers/ cold storage/ Variable Humidity Chambers, Packing facility,Cleaning in Process (CIP) Fog treatment, Individual Quick Freezing (IQF) and blast freezing.
- Irradiation facility.
How we help you
Financial assistance (grant-in-aid) under the scheme is limited to a maximum of Rs 10 crore per project in relation to technical civil works and eligible plant & machinery subject to the following:
- For storage infrastructure including Pack House and Pre cooling unit, ripening chamber and transport infrastructure, grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas & Islands, of the total cost of plant & machinery and technical civil works will be provided.
- For value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing, grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands, will be provided.
- For irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands.
Pattern of Release of Grant
The grant-in-aid under the scheme is released in three installments of 25%, 40% and 35% as per following schedule:
- 1st installment of 25% of the total grant under the scheme is released after ensuring that 25% of the promoter’s contribution and 25% of the term loan has been spent on the project;
- 2nd installment of another 40% of the total grant is released after ensuring that utilization of first installment of grant, 65% of promoter’s contribution & 65% of term loan;
- 3rd and final installment of remaining 35% of the grant assistance is released after ensuring utilization of the second installment and 100% of the promoter’s contribution and 100% of term loan.
FAQs
The scheme aims to tackle the issues with post-harvest losses and supply chain inefficiencies. The subsidy will help multiple touchpoints, from harvest to retail.
Yes. The scheme is a strategic approach and works for integrated projects, meaning at least two or more linked components. If you need more details, H square will help you.
Yes. Existing units are equally eligible when the project involves modernization but it should align with scheme guidelines.
Absolutely. On-farm pre-cooling, collection centres and primary processing units are all eligible.
Unlike standalone cold storage support, this scheme is definitely different because it highlights on continuous temperature management and value addition. It goes beyond just storage.
Have Questions About Something?
Office 517, Iconic Shyamal, Shyamal Cross Road, Satellite, Ahmedabad - 380015, Gujarat.
Start Today with H Square Advisors
H Square Advisors offers tailored solutions in finance, government subsidies, taxation, and more. We provide expert consultancy to help businesses thrive, ensuring they receive the support they need to grow.