Cold Chain Subsidy Scheme for Infrastructure in India 2025
subsidy for setting up cold chain unit

Subsidy For Setting Up Cold Chain

The Scheme is to provide integrated cold chain, preservation and value addition infrastructure facilities without any break, from the farm gate to the consumer in order to reduce post-harvest losses of non-horticulture produce, dairy, meat, poultry, and marine/ fish (except shrimp). This will enable linking producers to food processors and market through a well-equipped supply chain and cold chain, thereby ensuring remunerative prices to farmers and year-round availability of food products to consumers.

Eligible Entities

Integrated cold chain and value addition infrastructure projects can be set up by any individual / Central & State PSU / Joint Venture / NGO / Cooperative / Self Help Group (SHG) / Farmer Producer Organizations (FPO) / Farmer Producer Company (FPC) / Public & Private Sector Companies / Limited Liability Partnership (LLP) / Partnership Firm / Proprietorship Firm with business interest in cold chain solutions and also by those who manage supply chain.

Components of the Scheme

The scheme will have the following Project Components:

  1. Farm Level Infrastructure (FLI), which may include processing centre, situated in the catchment area of the targeted produce. Location of FLI must mandatorily be indicated in the DPR as well as bank appraisal note.
  2. Processing Centre (mandatory component) – indicative list in para- 5.1 below.
  3. Distribution hub – This shall have a modern multi-product, multi-temperature cold storage. It may also include one or more of the facilities mentioned in paragraph 5 below depending upon the business plan of the project.
  4. Refrigerated vans/ refrigerated trucks/ insulated vans/ mobile insulated tankers.

Eligible Facilities for Calculation of Grant-in-Aid

Assistance under the Scheme can be availed for creation of the following facilities:

  • Mechanized sorting & grading line/ packing line/ staging cold rooms.
  • Cold Storage Unit(s) /Controlled Atmosphere (CA) /Modified Atmosphere (MA) Storage unit(s) [Associated with value addition].
  • Frozen Storage/ Deep freezers [Associated with value addition].
  • IQF line, Tunnel/ Spiral/ Blast/ Plate Freezer
  • Milk Chilling/ Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing.
  • Note: Maximum 10 Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit can be assisted per project
  • Poultry/ Meat/ Marine/ Fishery Processing Unit
  • Packaging line for chilled/ frozen/ temperature-controlled products
  • Refrigerated/ insulated transport.
  • Pre-Cooling Unit(s)/ Mobile pre-coolers.
  • Vacuum Freeze Drying
  • Retail refrigerated carts, temperature controlled solar powered retail carts
  • Note: maximum 5 such carts can be considered per project.
  • Reefer Boats
  • Note: maximum 5 such boats can be considered per project.
  • Refrigerated Containers including multi-modal container units.
  • Renewable/ alternate energy technologies (solar, biomass, wind etc.) for the project.
  • Note: maximum permissible cost is Rs. 35 lakh per project.
  • Accessories/ support infrastructure/ utilities such as fixed racking system in Cold/CA storage, forklifts, reach trucks, insulated fish boxes, dock levelers, mezzanine flooring, ETP, boiler, GIP unit, Slicer/ Dicer, sorting/ grading line, etc.
  • In-house product testing laboratory
  • Any other modern technology for temperature-controlled storage, processing, value addition and preservation infrastructure
  • The integration of Artificial Intelligence (AI), Internet of Things (IoT), and Supervisory Control and Data Acquisition (SCADA) in the project for enhancing automation, efficiency, and quality control.
  • Toilets, septic tank, drainage and such other facilities.

Pattern Of Assistances

  1. Grants-in-aid/Subsidy will be @35% of eligible project cost for projects in General Areas and @50% of eligible project cost for projects in Difficult Areas as well as for projects of SC/ST, FPOs and SHGs, subject to the maximum of Rs. 10 crore per project.
  2. No upward revision, for any reason whatsoever, in approved grants-in-aid/Subsidy will be considered.
  3. In case of proposals requesting for downward revision of eligible project cost on account of dropping of any of the approved components, the grants-in-aid/Subsidy will be reduced in proportion to the reduction in the eligible project cost. Such cases shall be placed before the PAC for consideration.
  4. No grants-in-aid/Subsidy shall be payable on any expenditure towards eligible components of the project, of any nature whatsoever, made before the date of issuance of approval letter by the Ministry. The same shall be verifiable from bank statement/invoices to be submitted at the time of request for release of various instalments of grants-in-aid.
  5. Grants-in-aid/Subsidy will be considered in respect of eligible project components only.
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