The Indian Government has undertaken several measures to boost and grow the cold storage and warehousing industry in India. subsidy for cold storage
This has done through the implementation of several carefully designe schemes aimed at aiding this industry with all the requirements needed for their further development, ease of doing business, attracting foreign investors and thereby growing its market share in the economy.
Several tax exemptions and subsidies have been provided to ensure that this industry grows at as fast a rate as those seen in other countries.
These exemptions and benefits include the National Horticulture Board (NHB),
National Horticulture Mission (NHM), Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Food Processing Industry (MoFPI), Mission for Integrated Development of Horticulture (MIDH)
along with the absolutely and complete cooperation of the and Department of Agriculture and Cooperation which works alongside to grow and boost the cold storage industry in India.
1. Scheme For Integrated Cold Chain And Value Addition Infrastructure
Eligible Entities
- Individuals, PSUs (Central/State), JVs, NGOs, Cooperatives, SHGs, FPOs/FPCs
- Public & Private Companies, LLPs, Partnerships, Proprietorships with cold chain/supply chain interests
Key Components
- Farm Level Infrastructure (FLI)
- Processing Centre (Mandatory)
- Distribution Hub (Modern multi-temperature cold storage)
- Transport – Refrigerated vans/trucks, insulated vehicles, reefer boats, containers
- Supporting Facilities – Sorting/grading, cold storage, freezing units, milk chilling, meat/fish processing, packaging, testing labs, etc.
- Technology Integration – AI, IoT, SCADA
- Sustainability – Solar/biomass/wind tech (up to ₹35 lakh)
Subsidy Pattern
- 35% of eligible project cost in General Areas
- 50% in Difficult Areas / SC/ST / FPOs / SHGs
- Cap: Up to ₹10 crore per project
2. Capital Investment subsidy scheme for construction/expansion/ modernization of cold storage and storages for Horticulture Produce.
Components Credit linked projects relating to Cold Storage including Controlled Atmosphere (CA) and their modernization are eligible for assistance under this component. subsidy for cold storage scheme for expansion of cold storage
Infrastructure/Activity and Crops eligible:
- Assistance for setting up of new Cold Storage infrastructure will be available only to Multi-Chamber cold Storage units with technologies which are energy efficient with provision of thermal insulation, humidity controlled, advance cooling systems, automation, etc, having specification and standards approved by the Ministry.
To ensure, compliance of notified standards, all projects will be subjected to technical scrutiny by NHB empaneled Technical appraisal agency.
- In case of CA Stores, projects of temperate fruit crops located in production areas for which to NHB protocols are available, are only are allowed.
- c) Capacity and Pattern of Assistance: – The assistance will be given as subsidy @ 35% of the capital cost of project in general areas and 50% in case of NE, Hilly States & Scheduled Areas for a storage capacity above 5000 MT up to 10000 MT. In case of North East states, projects with a capacity of 1000 MT or above are also eligible for application and consideration.
- d) Calculation of Capacity for subsidy:- For calculation of capacity, 3.4 cubic meters (cum.) (120 cubic feet (cft.) of chamber volume shall be considered equivalent to 1 MT storage capacity.
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No. |
Component |
Description |
Financial Norms |
Pattern of Assistance |
|
1(ii) |
Large scale Hi-Tech open field cultivation of identified high value horticulture crops (Apple, Walnut, Almond, Cashew nut, Kiwi, Date Palm) |
Integrated project may include components such as planting material, plantation, irrigation, fertigation, mechanization, precision farming, GAP etc. |
Rs. 200.00 lakh per project (area over 20 ha), as per MIDH cost norms on pro-rata basis |
Credit linked back-ended subsidy @ 40% in general area, 50% for NER, Himalayan States, Scheduled Areas, UTs of Andaman & Nicobar Islands, Lakshadweep, J&K, Ladakh |
|
CS-1 (i) |
Cold Storage Type-I (civil structure) |
Includes PUF/PIR panels, Doors, Ante-rooms, Refrigeration Units, Electrical Installation, Admin block, Safety/Fire Safety and Hazard control, mezzanine |
@ Rs. 9120/MT (5001–6500 MT), Rs. 8640/MT (6501–8000 MT), Rs. 8160/MT (8001–10,000 MT), Rs. 4080/MT (10,001–20,000 MT) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
|
CS-1 (ii) |
Cold Storage Type-I (civil + PEB) |
Same components as above but with combination of civil & PEB |
@ Rs. 11400/MT (5001–6500 MT), Rs. 10800/MT (6501–8000 MT), Rs. 10200/MT (8001–10,000 MT), Rs. 5100/MT (10,001–20,000 MT) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
|
CS-1 Onion |
Cold Storage for Onion |
Same as CS-1 civil storage |
@ Rs. 9120/MT (5001–6500 MT), Rs. 8640/MT (6501–8000 MT), Rs. 8160/MT (8001–10,000 MT), Rs. 4080/MT (10,001–20,000 MT) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
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CS-4 (i) |
Cold Storage for dry spices & raisins (civil) |
PUF/PIR panels, Doors, Ante-rooms, Refrigeration Units, Electricals, Admin block, Safety/Fire Safety, mezzanine structure |
@ Rs. 9120/MT (5001–6500 MT), Rs. 8640/MT (6501–8000 MT), Rs. 8160/MT (8001–10,000 MT), Rs. 4080/MT (10,001–20,000 MT) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
|
CS-4 (ii) |
Cold Storage for dry spices & raisins, MFP (civil + PEB) |
Includes same components as CS-4(i) but with civil & PEB combination |
@ Rs. 11400/MT (5001–6500 MT), Rs. 10800/MT (6501–8000 MT), Rs. 10200/MT (8001–10,000 MT), Rs. 5100/MT (10,001–20,000 MT) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
|
CS-4 (iii) |
Unified control system, material hoist HPT, BOPT, dock leveller system (for dry spices and raisins) |
Based on component and quantity as per NCCD |
Upto Rs. 33.00 lakh/project |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
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Technology induction/modernization of Cold Storage |
Modernization including refrigeration and insulation |
Max Rs. 125 lakh, not exceeding Rs. 3000/MT (refrigeration) and Rs. 120 lakh not exceeding Rs. 1800/MT (insulation) |
Credit linked back-ended assistance @ 35% in general area, 50% in NE, Himalayan States, Scheduled areas, Andaman & Nicobar, Lakshadweep |
3. National horticulture Mission (NHM)
All cold storage units which come under the category of long term storage and distribution hubs up to 5000 MT capacity
are eligible for availing off assistance under the open-ended scheme of NHM/HMNEH, which again is a sub scheme of MIDH.
Such assistance is extend as a subsidy to the credit linke projects at 35% of the capital cost of the project in General Areas and 50% in case of
North-Eastern, Hilly and Scheduled Areas, as provide under the operational guidelines under the MIDH project.Add Your Heading Text Here
4. Agricultural and Processed Food Products Export Development Authority (APEDA)
In India, the establishment of all cold chain industries is assiste by APEDA as a part of its strategy to develop industries related to scheduled products everywhere.
Certain further monetary benefits available through APEDA have given below:
- a) Exemption on Custom Duty
Every project of cold storages, cold room which includes the farm level pre-cooling along with all industrial projects for preservation,
storage or processing of agriculture, apiary, horticultural, dairy poultry, aquatic and marine produce and meat have granted an import status with a mere concessional basic custom
duty (BCD) of 5%. Furthermore, the truck refrigeration units and refrigeration motor vehicles have fully exempted from BCD altogether
The Indian Government has now permitted 100% FDI within the cold chain sector in order to witness the much needed boom of this industry on a
global scale and in order to facilitate the growth of the cold chain infrastructure wholly and completely without any hindrances of for foreign investment.
Under the current FDI policy, a minimum investment of US$100 is mandatory with at least 50% investment in back-ended infrastructure for the same.
Moreover, as per the Department of Industrial Policy & Promotion,
the exact figure for FDI in only cold chain is still not however, the total FDI in food processing industries including the cold chain industry was
Rs. 45,130.73 crores as on March 2017, so a nearby deduction as the same can be made.
