PMKSY Cold Chain Scheme: Objectives and Components (Guidelines May 2025)

1 Eligible Entities :

• Applications can be submitted by various entities including Individual/Central & State PSUs, Joint Ventures, NGOs, Cooperatives, Self Help Groups (SHG), Farmer Producer Organizations (FPO), Farmer Producer Companies (FPC), Public & Private Sector Companies, Limited Liability Partnerships (LLP), Partnership Firms, and Proprietorship Firms.
• Entities must have a business interest in cold chain solutions or be involved in managing the supply chain.

2 Project Components and Eligible Facilities : 

• Projects must include integrated cold chain, preservation, and value addition infrastructure.
• A Distribution Hub is a mandatory component of the scheme.
• Other key components include Farm Level Infrastructure (FLI), Refrigerated vans/trucks/insulated vans/mobile insulated tankers.
• A wide range of facilities are eligible for grant-in-aid calculation, such as mechanized sorting and grading lines, cold storage (CA/MA/Frozen), IQF lines, milk chilling/processing units, poultry/meat/marine/fishery processing units, packaging lines, refrigerated transport, pre-cooling units, vacuum freeze drying, retail refrigerated carts, reefer boats, refrigerated containers, renewable/alternate energy technologies, support infrastructure, in-house product testing, modern technology for temperature-controlled storage, processing, value addition and preservation, and the integration of Artificial Intelligence (AI), Internet of Things (IoT), and SCADA for enhanced automation and quality control.

3 Financial Requirements and Conditions :

• Term Loan: A sanction letter for a term loan is required, dated no earlier than the Expression of Interest (EOI) issue date. The loan must be from a Scheduled Commercial Bank, a Financial Institution recognized by RBI, or an RBI-approved non-banking financing company.
• The term loan must be at least *20% of the total project cost for General Areas, and **10% for projects in Difficult Areas* (North-Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Ladakh, notified TOP areas, and Islands) or proposals from SC/ST, FPOs, or SHGs.
• Equity Infusion: Applicants from General Areas must infuse at least *20% of the total project cost as equity. For Difficult Areas or SC/ST, FPOs, and SHGs, the minimum equity infusion is **10%*. Unsecured loans are not considered part of equity.
• Application Fee: A non-refundable fee of *Rs. 20,000* is required, payable via Demand Draft to “Pay and Accounts Officer, Ministry of Food Processing Industries, New Delhi”. For SC/ST applicants, the fee is *Rs. 15,000*.
• Performance Security: A refundable bank guarantee equivalent to *5% of the eligible grants-in-aid/Subsidy* is required. This guarantee must be valid for up to 32 months from the approval date or until the acceptance of the evaluation report by the Ministry (whichever is later) and must be submitted within 30 days of the approval letter.

4 Application Submission Process:
Applications must be submitted *online* through the Ministry’s *SAMPADA Portal (https://www.sampada-mofpi.gov.in)* when the EOI is open.

• No physical applications* will be accepted.
• All submitted documents must be self-attested* by the applicant or an authorized signatory.
• Documents in regional languages must be accompanied by self-certified English/Hindi translations.
• All pages of the proposal should be properly numbered and include an Index.

5 Mandatory Documents and Information

• Detailed Project Report (DPR)* (as per Appendix-2 format) including:
• Financial and technical profile.
• Domain expertise of the applicant.
• Raw material availability in the catchment area and market strategy.
• Estimated production capacity and processing duration.
• Financial parameters, profit and loss statements, and estimated income.
• Employment generation projections (direct, contractual, indirect).
• Details of land for all project facilities, including status of possession, lease period (if leased, must be at least 15 years from application date), and connectivity details (e.g., proximity to highways, airports, seaports).
• Type of proposed facilities, number of units, total capacity, and days of operation per year.
• Chartered Accountant (CA) Certificates*:

1. CA/Statutory Auditor Certificate verifying net worth.
2. CA Certificate for project cost and means of finance.

• Chartered Engineer (CE) Certificates*:
  * CE (Civil) Certificate for technical civil work.
  * CE (Mechanical) Certificate for plant & machinery.
• Bank Appraisal Note: A detailed Appraisal Note specifically for the project proposal from a Scheduled Commercial Bank/NABARD/SIDBI/NEDFI.
• Legal and Company Documents: Certificate of incorporation/registration, Memorandum and Article of Association, bye-laws, PAN, TAN, and SC/ST certificate (if applicable).
• Financial Statements: Annual reports and Audited Financial Statements for the last two years (if applicable).
• Quotations: From Original Equipment Manufacturers or authorized dealers/suppliers for Plant & Machinery and equipment.
• Linkage Documents: Correspondences (emails/letters) demonstrating forward or backward linkages.

6 Evaluation Criteria :  Proposals are scrutinized by a Technical Committee based on eligibility and technical/assessment criteria.

• A proposal must obtain a minimum of *60% marks* to be shortlisted. For SC/ST applicants, the minimum is *45%*.
• Key criteria for evaluation include adequacy of raw material and suitability of location , economic viability of the proposed project , leveraging of investment (max 10 marks), entity from MSME sector projects in Aspirational Districts , and projects using renewable/alternate energy technologies .

7 Restrictions and Important Notes: 

• Only *one application* per entity is allowed against an Expression of Interest (EOI).
• Expansion or upgrading of existing facilities is *not eligible* for assistance under this Scheme.
• An entity that has already received grants-in-aid/subsidy under this Scheme is *not eligible* to submit a second proposal.
• Entities that have received financial assistance under other sub-schemes of PMKSY are eligible for grants-in-aid/subsidy only after two years from the date of commercial operation of the previous project or the closing date of the EOI.