Introduction: Cold Storage Subsidy Scheme (NHB)

In India’s fast-evolving agri-business sector, cold storage infrastructure plays a crucial role in reducing post-harvest losses, preserving produce quality, and stabilizing market prices. However, building or modernizing a cold storage facility involves high capital costs, often discouraging entrepreneurs, FPOs, and agribusinesses from investing.

To bridge this gap, the Government of India, through the National Horticulture Board (NHB), implements the Capital Investment Subsidy Scheme for Construction, Expansion, and Modernisation of Cold Storages and Storages — commonly known as the Cold Storage Subsidy Scheme.

At Finraja Consultancy Pvt. Ltd., we specialize in CFA (Credit Facilitation & Financial Assessment), DPR preparation, and end-to-end subsidy consultancy, ensuring that your project not only qualifies under this scheme but also receives the maximum eligible subsidy in compliance with NHB norms.

What is the Cold Storage Subsidy?

The NHB Cold Storage Subsidy Scheme provides credit-linked, back-ended financial assistance to entrepreneurs, companies, cooperatives, and FPOs for constructing or expanding cold storage units used for horticultural products like fruits, vegetables, flowers, and processed foods.

This initiative encourages the development of modern, energy-efficient cold storages with temperature control, insulation, and safety features as per Bureau of Indian Standards (BIS) and NHB technical standards.

Funding Pattern / Financial Assistance (CFA)

According to the official NHB guidelines, the scheme provides capital investment subsidy linked to bank credit. The subsidy is released after successful inspection and completion of the project as a back-ended subsidy, i.e., adjusted against the final loan repayment.

The eligible project cost (EPC) includes expenses for civil works, insulation, refrigeration machinery, electrical systems, and automation controls — as verified during inspection.

Finraja Consultancy’s CFA team ensures your financial documents, project appraisal, and DPR are aligned with the bank’s term-loan structure so that the project qualifies for maximum subsidy release.

Eligibility Criteria for Cold Storage Subsidy

The cold storage subsidy eligibility covers a wide range of applicants, including:

• Individual entrepreneurs or partnerships
• Farmer Producer Organizations (FPOs)
• Cooperative societies and trusts
• Companies registered under the Companies Act
• Self-help groups engaged in horticultural storage activities

Key eligibility conditions:

1. Land Ownership:
   The applicant must own or lease the project land for a minimum of 15 years (lease deed must be registered).
2. Financial Viability:
   The project must have a term loan sanctioned by a recognized bank or financial institution, demonstrating repayment capacity.
3. Technical Compliance:
   The proposed cold storage must meet NHB technical standards for civil construction, insulation, refrigeration systems, and safety equipment.
4. Timelines:
   • Letter of Intent (LoI) is valid for 1 year from issue.
   • The project must be completed within 2 years from sanction of term loan.

Components Eligible for Subsidy

The scheme supports construction and modernization of:

• Multi-chamber cold storages
• Controlled Atmosphere (CA) storages
• Modified Atmosphere (MA) storages
• Refrigerated warehouses
• Onion storage and ripening chambers
• Solar and energy-efficient components

Financial Assessment & DPR (By Finraja Consultancy)

One of the most critical elements of your subsidy journey is the Detailed Project Report (DPR) — a document that outlines project cost, technical design, equipment details, funding pattern, and expected returns.

Our expert team at Finraja Consultancy Pvt. Ltd. prepares DPRs that comply with the NHB’s prescribed formats and align with both bank appraisals and subsidy eligibility norms.

Finraja’s DPR & CFA Services include:

• Techno-economic feasibility report with EPC analysis
• Financial structuring (debt-equity ratio, term loan integration)
• Preparation of LoI, basic data sheet, and annexures as per NHB standards
• Coordination with banks for credit sanction & documentation
• Inspection readiness and subsidy claim assistance post-completion

By ensuring your DPR is professionally structured and technically sound, Finraja maximizes the approvability and funding potential of your project.

Project Cost & Subsidy Calculation

Let’s illustrate how the subsidy works through an example:

This means your term loan is initially disbursed by the bank for the full project cost, and once NHB verifies completion, ₹3.15 crore is credited as subsidy reserve fund, reducing your final loan liability.

How to Apply for Cold Storage Subsidy (Through Finraja Consultancy)

While the NHB allows online application via its portal, the process is highly documentation-intensive and demands precise technical and financial compliance.

As a professional subsidy consultant, Finraja Consultancy Pvt. Ltd. manages this entire process on your behalf — ensuring accuracy, compliance, and faster approvals.

Finraja’s Application Process Flow:

1. Initial Project Assessment & Feasibility Check
   – We analyze your project’s capacity, cost, and location for NHB fitment.
2. Preparation of LOI and DPR
   – Drafting and submission under the Capital Investment Subsidy Cold Storage scheme.
3. Bank Coordination & Term Loan Sanction
   – Aligning DPR with lender’s CFA (Credit Facilitation & Assessment).
4. Technical Verification & Inspection Support
   – Guidance during NHB/Bank joint inspection.
5. Subsidy Claim & Fund Realization
   – Submission of claim documents, utilization certificate, and final fund adjustment.

With our end-to-end handling, clients don’t need to navigate multiple departments or risk procedural delays — Finraja manages it all under one expert umbrella.

Benefits of Availing Cold Storage Subsidy

1. Reduced Capital Burden:
   Save up to 35–50% of your project cost.
2. Improved Bankability:
   DPR and CFA strengthen your loan approval chances.
3. Modern Infrastructure:
   Get financial support for energy-efficient, BIS-standard cold storages.
4. Faster ROI:
   Subsidy reduces overall payback period significantly.
5. End-to-End Support:
   Finraja ensures smooth compliance, from LOI to subsidy release.

Related Government Initiatives

The Cold Storage Subsidy Scheme complements other national initiatives like:

• PMKSY (Pradhan Mantri Kisan Sampada Yojana)
• Integrated Cold Chain and Value Addition Infrastructure Scheme under MoFPI
• Mission for Integrated Development of Horticulture (MIDH)

Integrating multiple schemes can enhance project viability, and Finraja’s experts help identify overlapping opportunities for maximum capital support.

Why Choose Finraja Consultancy Pvt. Ltd.

• Experienced subsidy consultants for NHB, MoFPI, and MSME schemes
• In-house team for CFA, DPR, and compliance documentation
• Strong relationships with nationalized banks & project management consultants
• Proven record in cold storage, food processing, and agri-infrastructure subsidies

Conclusion

The NHB Cold Storage Subsidy Scheme is a powerful opportunity for agribusinesses, FPOs, and entrepreneurs to establish world-class cold storage facilities with substantial financial support from the government.

However, success depends on strategic financial structuring, accurate DPR preparation, and precise documentation — areas where Finraja Consultancy Pvt. Ltd. provides unmatched expertise.

Call us now: +91 9373114747 or visit: finraja.com/contact for quick assistance.