• Government does not set up cold storage of its own. 

    • However, Government is implementing various schemes under which financial assistance is provided for setting up of cold storages for storage of agriculture produce including perishable horticulture produce throughout the country.

    • Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) is implementing Mission for Integrated Development of Horticulture (MIDH) under which financial assistance is provided for various horticulture activities including setting up of cold storages.

    • The component is demand/entrepreneur driven for which Government assistance in the form of credit linked back ended subsidy is available at the rate of 35% of the project cost in general areas and at the rate of 50% of the project cost in hilly and scheduled areas.

Supportive schemes

    1. MIDH

    • Under MIDH, cold storages are sanctioned by State and Central level Committees constituted for this purpose under operational guidelines of MIDH.

    • The cold storages upto a capacity of 5000 MT are eligible for assistance under MIDH.

    • The powers for sanction of projects up to project cost of Rs.500 lakh including setting up of cold storage have been delegated to State Level Executive Committee (SLEC).

    • Projects with a project cost of more than Rs. 500 lakh and upto a capacity of 5000 MT are approved by the Empowered Monitoring Committee (EMC) of DAC&FW on recommendation of SLEC.

    • For seeking assistance for setting up of cold storage under MIDH, promoter is required to submit the proposal to the concerned State Horticulture Mission.

    2. National Horticulture Board

    • Besides, National Horticulture Board (NHB) is implementing a scheme namely “Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products”. 

    • Under the scheme, credit linked back-ended subsidy at the rate of 35% of the capital cost of the project in general areas and 50% in case of North East, Hilly States & Scheduled areas for construction/expansion/modernization of cold storage and CA storage of capacity above 5000 MT and up to 10000 MT is available.

    • In case of North East region, the units with capacity above 1000 MT are also eligible for assistance.

    • As per Scheme Guidelines, applicant has to make an online application to NHB for In-Principle Approval (IPA).

    • After receipt of IPA, applicant is required to get the Term Loan sanctioned from Bank/Financial Institution. Thereafter, NHB issues Grant of Clearance to start the project. 

    • Upon completion of project using promoter’s equity and bank term loan, the subsidy claim is to be submitted to NHB.

    • After physical joint inspection of the project, subsidy claim is considered and approved by the Project Approval Committee of NHB. 

    • Thereafter, NHB subsidy is released in the subsidy reserve fund account of the lending Bank/Financial Institution.

    3. Pradhan Mantri Kisan Sampada Yojana

    • Ministry of Food Processing Industries (MOFPI) is implementing a Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure as one of the components of Pradhan Mantri Kisan Sampada Yojana.

    • The objective here is to reduce post-harvest losses of horticulture and non-horticulture produce and provide remunerative price to farmers for their produce.

    • Under the scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 

    • 50% for North East States, Himalayan States, ITDP areas and Islands for storage and transport infrastructure.

    • And at the rate of 50% and 75% respectively for value addition and processing infrastructure subject to a maximum grant-in-aid of Rs. 10 crore per project for setting up integrated cold chain projects including irradiation facility without any break from the farm gate to the consumer.

    • The integrated cold chain and preservation infrastructure can be set up by individuals, groups of entrepreneurs, cooperative societies, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc.

    • Standalone cold storages are not covered under the Scheme. The organization desiring to set up a cold chain project has to apply against EOI issued from time to time.

(The author is a trainer for Civil Services aspirants. The views expressed here are personal.)