Cold Storage Subsidy Scheme

The objective of the Scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres which include infrastructural facilities like Processing/ Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat and poultry etc.

The integrated cold chain project is set up by Partnership/ Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/ State PSUs, etc. subject to fulfillment of eligibility conditions of scheme guidelines.

Project Components

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.

Pattern of Assistance

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.