Key Parameters for Setting Up Units Under PMKSY’s Integrated Cold Chain Scheme
To help you with your blog post, here are the key parameters for setting up multiproduct food irradiation units under the Pradhan Mantri Kisan Sampada Yojana, presented in a simplified manner.
This scheme aims to support the establishment of food irradiation units primarily for perishable agricultural produce like fruits and vegetables, with the goal of improving hygiene and extending shelf life.
Key Parameters for Setting Up Food Irradiation Projects
1 Project Objective and Components
- The core objective is to set up a food irradiation unit.
- This unit can be standalone or integrated with a cold chain and value-addition infrastructure.
- Integrated projects are prioritized and receive higher marks in evaluation.
- Integrated components can include cold storage, multi-chamber cold storage, controlled atmosphere (CA) storage, ambient storage, grading and sorting facilities, and reefer vans.
2 Eligible Applicants :
- A wide range of entities can apply, including individuals, organizations, Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), Self-Help Groups (SHGs), NGOs, PSUs, firms, and companies.
- Entities from the MSME (Micro, Small and Medium Enterprises) sector receive priority in the selection process.
3 Financial Assistance (Grant-in-Aid)
- Mandatory Component: The food irradiation component is mandatory for any project seeking assistance under this scheme. Proposals without it will not be considered.
- Grant Rates: 35% of the eligible project cost for projects in General Areas.
▪ 50% of the eligible project cost for projects in Difficult Areas, or for projects proposed by SC/ST entities, FPOs, and SHGs.
- Maximum Grant: The maximum grant-in-aid is capped at ₹10 crore per project.
4 Eligible Costs: The grant covers the food irradiation unit itself, along with related facilities like mechanized sorting, pre-cooling, various types of cold storage, refrigerated transport, and renewable/alternate energy technologies (e.g., solar, bio-mass, wind). The maximum permissible cost for renewable/alternate energy technologies is ₹35 lakh per project.
- Ineligible Costs: Certain costs are specifically excluded from grant calculation, such as land cost, administrative buildings, vehicles, fuel, working capital, and pre-operative expenses.
5 Land Requirements :
- Standalone Irradiation Unit: Requires a minimum land area of 1.5 acres
- Integrated Irradiation Unit: Requires a minimum land area of 3.5 acres.
- Land Possession: For higher evaluation scores, the main facility land should be in your possession with approval for industrial use.
6 Project Evaluation and Selection Criteria :
- Projects are evaluated based on specific criteria with a total of 100 marks. To be eligible for grant-in-aid, a proposal must secure a minimum of 60% marks (or 45% for SC/ST categories).
- Key Evaluation Factors:
- Location Suitability : Proximity to highways, freight corridors, or seaports is highly valued.
▪Economic Viability: Assessed through Bank Appraisal, focusing on Internal Rate of Return (IRR) and Debt Service Coverage Ratio (DSCR). A higher IRR (above 20%) and DSCR (above 2.5) fetch maximum marks.
▪ Project in Underserved Districts : Projects proposed in districts that currently lack a food irradiation facility receive additional marks.
▪ Renewable Energy Integration : Incorporating solar, biomass, or wind energy technologies into the project adds points.
▪MSME Sector Participation : Proposals from MSME entities are given preference.
▪Investment in Food Irradiation Facility: An integrated facility with cold storage gets more marks than a standalone unit.
▪Refer Transport Investment : Projects including reefer transport, especially with higher capacity (>20 MT), score additional points.
▪Technical Presentation : The quality and feasibility of the technical proposal by the promoters are also assessed.
6 Application Process :
- All applications must be submitted online through the SAMAPADA portal.
- The Ministry assists applicants by reviewing proposals and conducting inspections for effective implementation
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