Lok Sabha Question No. 578 (UNSTARRED), answered on 2018-02-06
Subject: Cold Storages
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: PINAKI MISRA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO.578

ANSWERED ON 06 TH  FEBRUARY, 2018

## COLD STORAGES

## 578. SHRI  PINAKI MISRA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether there are any schemes of the Government for promoting the setting up of cold storages for Horticulture and non-Horticulture purposes and if so, the details thereof;
- (b) whether  the  Government  is  providing  any  financial  assistance  thereunder  to  those  who  are coming forward for setting up of the cold storages at the farm gates;
- (c) the maximum amount of fund/ loan that an individual or an enterprise can get in order to set up a cold storage at the farm gate; and
- (d)     the procedure adopted for providing the fund/ loan for such purposes?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a) to  (d):  Ministry  of  Food  Processing  Industries  is  implementing  a  central  sector  Scheme  for Integrated  Cold  Chain  and  Value  Addition  Infrastructure  in  order  to  arrest  post-harvest  losses  of horticulture & non-horticulture produce and to provide remunerative prices to farmers.  In this scheme cold  storage  can  be  set  up  as  one  of  the  component.    Ministry  is  implementing  the  Central  Sector Scheme of Integrated Cold Chain and Value Addition Infrastructure to provide integrated cold chain and  preservation  infrastructure  facilities  from  the  farm  gate  to  the  market.  Under  the  scheme,  the Ministry provides financial assistance in the form of grant-in-aid @ 35% for general areas and @ 50% for North  East States, Himalayan  States, ITDP  areas  and  Islands for storage and  transport infrastructure  and  @  50%  and  75%,  respectively  for  value  addition  and  processing  infrastructure subject  to  a  maximum  grant-in-aid  of  Rs.10  crore  per  project  for  setting  up  integrated  cold  chain projects in the country. The scheme is primarily private sector driven and proposals under this scheme are invited through Expression of Interest (EOI). Proposals received against the EOI are first evaluated by Technical Committee(TC) and then by Inter-Ministerial Approval committee(IMAC) after that the approval letter are being issued to the project.

Further, Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare is implementing Mission for Integrated Development of Horticulture (MIDH) for holistic development of horticulture which also provides assistance for creation of postharvest infrastructure including setting up of Cold Storages for perishable horticulture produce in rural areas.  The  assistance  is  available  to  an  individual  or  an  enterprise  through  State  Horticulture Mission/National Horticulture Board for setting up of maximum 10,000 MT capacity cold storage with the cost norms varies between Rs. 6,800/MT and Rs. 10,000/MT. The components are demand/entrepreneur-driven  from  among  entrepreneurs,  private  companies,  cooperatives,  farmers groups  etc.  through  commercial  ventures  for  which  assistance  @35%  of  admissible  project  cost  in general  areas  and  @50%  in  hilly  and  schedule  area  is  available  as  credit  linked  and  back  ended subsidy.

In  addition  to  above,  National  Horticulture  Board  (NHB)  is  also  providing  credit  link  back ended subsidy under its scheme 'Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products' on all India basis to set up cold storages for Horticulture Produce @ 35% of the capital cost of project in general area and 50% in case of NE, Hills states & scheduled area for a storage capacity above 5000 MT up to 10000 MT. In case of NE Region w.e.f. 01.04.2017 the storage having capacity above 1000 MT is also eligible for NHB assistance. The maximum amount of back ended subsidy varies according to type and location of cold storage, as per cost norms given below:

|   Sl no. | Description                                                                                                                                                                    | Cost Norms                                                                                                                                                                                                                                                 |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Cold storage units Type 1- basic mezzanine structure with large chamber (of >250MT) type with single temperature zone                                                          |  @Rs. 8000/MT for capacity upto 5000 MT  @Rs. 7600/MT for capacity between 5001 to 6500 MT.  @Rs. 7200/MT for capacity between 6501 to 8000 MT.  @ Rs. 6800/MT for capacity between 8001 to 10000 MT.                                                  |
|        2 | Cold storage unit Type2- Pre Engineering Building (PEB) Type for multiple temperature and product use, more than 6 chambers of <250 MT) and basic material handiling equipment |  @Rs. 10000/MT for capacity upto 5000 MT.  @Rs. 9500/MT for capacity between 5001 to 6500 MT.  @Rs. 9000/MT for capacity between 6501 to 8000 MT.  @ Rs. 8500/MT for capacity between 8001 to 10000 MT.                                                |
|        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 as per components wise cost.                                                                                                                                            |
|        4 | Technology induction and modernization of cold-chain                                                                                                                           |  @ Rs. 5000/MT for capacity between 5001 to 10000 MT.  Components of modernization includes PLC equipment, packaging lines, dock levelers, advanced graders, alternate technologies, stacking system, modernization of insulation and refrigeration etc. |

As per directions of DAC&FW, Govt. of India, w.e.f. 01.04.2017 the promoter has to take In-Principle Approval (IPA) from NHB for getting the benefit of their schemes. As per IPA system promoter has to get sanction of term loan from Bank/Financial Institution before applying for IPA. NHB is being issued IPA  on  first  come  first  serve  basis  across  the  India  to  the  eligible  organization  unless  otherwise specified,  organizations/promoters,  such  as  Association  of  Growers,  Individuals,  Group  of  farmer growers/  consumers,  Farmer  Producer  Organization  (FPOs),  Partnership/  Proprietorship  firms,  Self Help Groups (SHGs), NGOs,  Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Agricultural Produce Marketing Committees, Marketing Boards/ Committees, Municipal Corporations/  Committees,  Agro  Industries  Corporations  etc.  are  eligible  organization  to  avail  the benefit of the scheme.

*****