Government Subsidy for Establishing Cold Chain Infrastructure

The Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure is a component of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and is implemented by the Ministry of Food Processing Industries (MOFPI). The scheme aims to reduce post-harvest losses of horticulture and non-horticulture produce and provides remunerative prices to farmers.

The objective of the Scheme

The scheme’s primary objective is to establish a strong cold chain infrastructure for agricultural, horticultural, dairy, fish and marine, poultry, and meat products. It aims to provide integrated cold chain, preservation and value-addition infrastructure facilities from the farm until the produce reaches the consumer to reduce post-harvest losses. It also connects farmers to food processing companies and the direct market through a well-equipped supply chain and cold chain. This ensures remunerative prices to the farmers and around-the-year availability of food products to the consumers.

Components of the Scheme

The different components of the Integrated Cold Chain and Value Addition Infrastructure scheme include:

• Farm Level Infrastructure (FLI): This includes the processing centre located in the catchment area of the particular produce.
• Processing Centre: These centres are located at the farm level and have facilities for weighing, sorting, grading, waxing, packing, pre-cooling, Control Atmosphere (CA)/ Modified Atmosphere (MA) cold storage, frozen storage, normal storage, Individual Quick Freezing (IQF).
• Mobile Pre-Cooling Vans and Reefer Trucks: These vehicles are used for pre-cooling and transportation of produce.
• Distribution Hubs: These hubs have multi-products and multi-control Atmosphere (CA)/Modified Atmosphere (MA) chambers, cold storage, variable humidity chambers, packing facilities, cleaning in process (CIP), fog treatment, Individual Quick Freezing (IQF), and blast freezing.
• Irradiation Facility: The scheme includes this facility to support the irradiation process. This facility may include cold storage, grading facilities, reefer vans, etc.

Eligibility to Avail the Scheme

• Entities eligible to set up cold storage include private industry, entrepreneurs, cooperative societies, self-help groups (SHGs), farmer groups, NGOs, central/state PSUs, and more.
• The combined net worth of the applicant must be atleast 1.5 times the fund sought for. In the case of SC/ST applicants, the sum of the net worth of the applicant should not be less than 10% of the combined net worth of the entity.

Grant Amount and Disbursement

Financial assistance (grant-in-aid) under the scheme is limited to a maximum of Rs.10 crore per project for technical civil works and eligible plant and machinery. The grant-in-aid will be 35% of the total project cost in General Areas and 50% in Difficult Areas like North East States, Himalayan States, ITDP Areas, and Islands and also for projects from SC/ST applicants, FPOs and SHGs

The grant-in-aid under the scheme is released in three instalments, with each instalment being contingent on the progress of the project. The first instalment is released after verifying that 25% of the promoter’s contribution and 25% of the term loan have been spent on the project. The second instalment is released after ensuring the utilisation of the first instalment of the grant, 65% of the promoter’s contribution, and 65% of the term loan. The third and final instalment is released after confirming the utilisation of the second instalment, 100% of the promoter’s contribution, and 100% of the term loan.

How to Apply

This scheme is demand-driven and can be availed throughout the year. Interested organisations need to apply when the MOFPI issues expressions of interest (EOIs). The applications need to be submitted online on the SAMPADA website, and no offline applications are accepted.

The Integrated Cold Chain and Value Addition Infrastructure scheme is crucial in enhancing agricultural produce’s storage and processing capabilities, benefiting farmers, entrepreneurs, and consumers alike.