Lok Sabha Question No. 421 (UNSTARRED), answered on 2021-07-20
Subject: Procedure for Setting up Cold Storage
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Prathap Simha, Umesh G. Jadhav

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 421

TO BE ANSWERED ON THE 20 TH  JULY, 2021

## PROCEDURE FOR SETTING UP COLD STORAGE

421. SHRI PRATHAP SIMHA: DR. UMESH G. JADHAV:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the procedure for setting up of cold storages by the Government;
- (b) the number of cold storages operating in the State of Karnataka, district-wise; and
- (c) the manner in which assistance  is provided by the Government for setting  up such cold storage?

## ANSWER

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (c): Government  does  not  setup  cold  storage  of  its  own.  However,  Government  is implementing following schemes under which financial assistance is provided for setting up of cold storage throughout the country.

Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) is implementing Mission for Integrated Development of Horticulture (MIDH) under which financial assistance is provided for various horticulture activities including setting up of cold storages. The component is  demand/entrepreneur  driven  for  which  Government  assistance  in  the  form  of  credit  linked back ended subsidy is available at the rate of 35% of the project cost in general areas and at the rate of 50% of the project cost in Hilly and Scheduled areas.

Under  MIDH,  cold  storages  are  sanctioned  by  State  and  Central  level  Committees constituted for this purpose under operational guidelines of MIDH. The powers for sanction of projects  up  to  project  cost  of  Rs.500  lakh  including  setting  up  of  cold  storage  have  been delegated to State Level Executive Committee (SLEC). Projects with a project cost of more than Rs.  500  lakh  and  upto  a  capacity  of  5000  MT  are  approved  by  the  Empowered  Monitoring Committee (EMC) of DAC&FW on recommendation of SLEC. For seeking assistance for setting up of cold storage under MIDH, promoter/entrepreneur submits the proposal to the concerned State Horticulture Mission.

Besides, National Horticulture Board (NHB) is implementing a scheme namely 'Capital Investment Subsidy for Construction/Expansion /Modernization of Cold Storages and Storages for  Horticulture  Products'.  Under  the  scheme,  credit  linked  back-ended  subsidy  at  the  rate  of 35% of  the  capital  cost  of  the  project  in  general  areas  and  50%  in  case  of  North  East,  Hilly &Scheduled  areas  for  construction/expansion/modernization  of  cold  storage  and  Controlled Atmosphere (CA) storage of capacity above 5000 MT and up to 10000 MT is available. In case of  North  East  region,  the  units  with  capacity  above  1000  MT,  are  also  eligible  for  assistance under NHB. The Scheme is demand/ entrepreneur-driven. As per Scheme Guidelines, applicant has to make an online application to NHB for In-Principle Approval (IPA).  After receipt of IPA, applicant is required to get the Term  Loan  sanctioned  from  Bank/Financial  Institution. Thereafter,  NHB  issues  Grant  of  Clearance  to  start  the  project.    Upon  completion  of  project using promoter's equity and bank term loan, the subsidy claim is to be submitted to NHB.  After physical joint inspection of the project, subsidy claim is considered and approved by the Project Approval Committee of NHB.  Thereafter, NHB subsidy is released in the subsidy reserve fund account of the lending Bank/Financial Institution. Further, Ministry of Food Processing Industries (MOFPI) is implementing a Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure as one of the component of Pradhan Mantri Kisan Sampada Yojana with the objective of reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce. Under the scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 50% for North East States, Himalayan States, ITDP areas and Islands for storage and transport infrastructure and at the rate of 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 including irradiation  facility.  The integrated  cold  chain  and  preservation  infrastructure  can  be  set  up  by  individuals,  groups  of entrepreneurs, cooperative societies, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. Standalone cold storages are not covered under the Scheme. The  entrepreneurs  desiring  to  set  up  a  cold  chain  project  has  to  apply  against Expression of Interest (EOI) issued from time to time. As per report received from Government of Karnataka, details of number of cold storages operating in the State of Karnataka, district-wise under MIDH including NHB are at Annexure -

I .

Annexure - I

## Details of District - wise number of Operating Cold Storage in the State of Karnataka

| S. No.   | District         |   Nos. |
|----------|------------------|--------|
| 1.       | Bengaluru Urban  |     14 |
| 2.       | Bengaluru Rural  |     02 |
| 3.       | Bagalkote        |     03 |
| 4.       | Belgavi          |     06 |
| 5.       | Bellary          |     23 |
| 6.       | Bidar            |     05 |
| 7.       | Vijayapura       |     25 |
| 8.       | Chikkaballapura  |     01 |
| 9.       | Chikkamagaluru   |     01 |
| 10.      | Chitradurga      |     03 |
| 11.      | Dakshina Kannada |     01 |
| 12.      | Dharwad          |     05 |
| 13.      | Gadag            |     01 |
| 14.      | Hassan           |     08 |
| 15.      | Haveri           |     24 |
| 16.      | Kalaburgi        |     02 |
| 17.      | Kolar            |     02 |
| 18.      | Kolar            |     01 |
| 19.      | Mysuru           |     05 |
| 20.      | Raichur          |     05 |
| 21.      | Ramanagara       |     02 |
| 22.      | Shivamogga       |     02 |
| 23.      | Tumkur           |     02 |
| 24.      | Uttar Kannada    |     03 |
| 25.      | Yadgiri          |     01 |
| Total    | Total            |    147 |

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