Subsidy on Cold Storage
Cold Storage Updated Subsidy Scheme i.e., “Scheme for Cold Storage under Mission for Integrated Development of Horticulture (MIDH)”.
To setup the business of cold storage, central government will provide the incentives under the MIDH scheme to encourage investment from private sectors in the development of marketing infrastructure.
Cold Storage Activities: MIDH would include projects relating to establishment of
1. Pre-cooling units,
2. On-farm pack houses,
3. Mobile pre-cooling units,
4. Staging cold rooms,
5.Cold storage units with and without controlled atmosphere capability integrated cold chain system,
6. Supply of refrigerated vans, refrigerated containers, primary/mobile processing units,
7. Ripening chambers, evaporative/low energy cool chambers,
8. Preservation units,
9. Onion storage units
10. Zero energy cool chambers.
Under this scheme, Assistance will provide for setting up of new cold storage infrastructure which include multi-chamber cold storage units with technologies which are energy efficient with provision for thermal insulation, humidity control, advanced cooling systems, automation etc. The Department of Agriculture & Cooperation will provide the assistance of amount paid for fixed capital investment on the basis of cost norms.
Who Can Apply:
2. Group of farmers/ growers/ consumers,
3. Partnership/ Proprietary firms, Self Help Groups (SHGs),
4. Farmers Producer Organization (FPOs),
5. Companies, Corporations,
6. Cooperatives, Cooperative Marketing Federations.
Financial Assistance/Subsidy/Benefits Available- The Quantum of Assistance as under would be provided as per the given below terms
A. For Capital subsidy:
For General Area:
Credit linked back-ended subsidy @ 35% of the cost of project.
For Hilly & Scheduled areas:
Credit linked back-ended subsidy @ 50% of the cost of project.
Cost Norms : (For Maximum 5000 MT)
1. Rs. 8000/- Per MT
(For Cold Storage Unit having Capacity less then 250 MT)
2. Rs. 10000/- Per MT
(For Cold Storage Unit having Capacity more then 250 MT and having more then 6 Chambers of storage)
3.Cold Storage Units Type 2 with add on technology for Controlled Atmosphere:
Additional Rs. 10,000/MT for add on components of controlled atmosphere technology.
B. Interest Subsidy:
Apart from the Capital Subsidy, Applicant can take the benefits of Interest subvention @ 3% on Bank Term Loan up to 7 Years for setting up Cold Storage under Agri Infra fund.
Maximum Loan amount covered under AIF is Rs.2.00 Crore.
Conditions to be met for availing subsidy:
1. Cost of land involved in infrastructure projects will be restricted to 15 % of project cost in rural areas and 25% in urban areas.
2. The unit will not transfer land during period of loan for any purpose other than the purpose for which project is sanctioned.
So if you are going to plan for set up a New Business Unit then You should plan according to above said scheme.
And, If you want to know more about other New Businesses & Subsidies Click at
Warehouse Business- https://kipfinancial.com/warehouse-business/
Silo Warehouse- https://kipfinancial.com/silo-warehouse/
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