The operational guidelines for the “Scheme for Integrated Cold Chain & Value Addition Infrastructure – setting up of multiproduct food irradiation units” provide a framework for establishing facilities to treat perishable agricultural produce and enhance shelf life.

Who Can Participate

The scheme is open to both individuals and organizations, including:

• Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs).
• Self-Help Groups (SHGs) and Non-Governmental Organizations (NGOs).
• Public Sector Undertakings (PSUs), firms, and companies.
• Entities from the MSME sector are given priority during assessment.

Activities and Components Covered

Financial assistance is provided for the following eligible facilities:

• Core Component: Standalone food irradiation units or integrated units.
• Infrastructure: Mechanized sorting and grading lines, packing lines, pre-cooling units, and mobile pre-coolers.
• Storage: Multi-chamber cold storage, Controlled Atmosphere (CA) storage, and frozen/deep freezer storage associated with value addition.
• Logistics: Reefer vans, refrigerated/insulated transport, and multi-modal container units.
• Modernization: In-house testing labs, renewable energy technologies (capped at ₹35 lakh per project), and modern temperature-controlled storage technologies.

Ineligible items include the cost of land, compound walls, office buildings, canteens, working capital, transport vehicles (excluding reefers), and second-hand machinery.

Eligibility Norms

To qualify for the scheme, applicants must meet several criteria:

• Net Worth: The combined net worth of the applicant must be at least equal to the grant-in-aid sought.
• Bank Loan: A term loan sanction letter from a bank for at least 20% of the total project cost (10% for Difficult Areas, SC/ST, FPOs, or SHGs) is mandatory.
• Equity: Infusion of equity must be at least 20% of the project cost (10% for Difficult Areas, SC/ST, FPOs, or SHGs).
• Land Requirements: Minimum land of 1.5 acres for standalone units and 3.5 acres for integrated units is required.
• Restrictions: Expansion or upgradation of existing facilities is not eligible, and an entity can receive assistance for a maximum of two projects over 10 years.

Net Worth Norms

Net worth is calculated based on the entity type:

• Companies: Calculated from paid-up share capital and reserves. Revaluation reserves are only considered for land and buildings.
• Other Entities (Firms/NGOs/FPOs): Based on the latest balance sheet, including assets like cash, current value of investments, and land (supported by valuation reports).
• Newly Formed Companies: The net worth of individual promoters/directors is considered.

Key Parameters for Participation in EOI

Proposals are invited through an Expression of Interest (EOI) published on the Ministry’s SAMPADA portal.

• Applications must be submitted online with a non-refundable fee of ₹20,000 (₹15,000 for SC/ST).
• Selection is based on a scoring system with a maximum of 100 marks, evaluating location suitability, economic viability, and the type of proposed facility.
• General category applicants must score at least 60%, while SC/ST applicants must score 45% to be eligible.

Required Documents

Key documents for application include:

• Detailed Project Report (DPR) and a detailed Appraisal Note from a Scheduled Commercial Bank.
• Net worth certificate from a Statutory Auditor/Chartered Accountant.
• Chartered Engineer certificates for Civil and Mechanical works.
• Land ownership/lease documents (lease must be for at least 15 years).
• Quotations for Plant & Machinery and an MOU with a designated agency of the Department of Atomic Energy for the irradiation source.

Pattern of Financial Assistance

The grant-in-aid is calculated as a percentage of the eligible project cost (maximum cap of ₹10 crore per project):

• General Areas: 35% of eligible project cost.
• Difficult Areas (Himalayan States, North-East, ITDP areas, Islands): 50% of eligible project cost.
• Special Categories: 50% for projects by SC/ST, FPOs, and SHGs.

Project Execution and Release of Funds

• Timelines: Projects in General Areas must be completed within 24 months, while those in Difficult Areas have 30 months.
• Phased Release: Grants are released in three equal instalments.
• Penalties: Delays beyond the stipulated timeline (except for force majeure) result in a reduction of the grant-in-aid, ranging from 1% to 10% depending on the length of the delay.