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Cold Chain Subsidy Scheme By MOFPI In India – Detailed Guide

The Ministry Of Food Processing Industries (MOFPI) in India, provides a cold chain subsidy scheme as financial assistance to the entrepreneurs. The scheme is to protect the perishable items of horticulture and livestock products from damage. Moreover, the products include livestock products with milk products, vegetables, and fruits.

Generally, cold chains play an important role in post-harvest management and storage of perishable items. Cold chain arrangement includes cold storage, cold transportation, and other value-added preservation infrastructure. Basically, a cold chain helps to extend and ensure the shelf life of the above-mentioned perishable products.

Objective Of The Cold Chain Subsidy Scheme

The first objective of the cold chain subsidy scheme launched by MOFpI is to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the Consumer.

The second reason is to enable linking groups of producers to the processors and market through the well-equipped supply chain.

The third objective is aimed at establishing value addition with infrastructural facilities like sorting, grading, packaging, and processing for horticulture including organic produce, marine, dairy, poultry, etc.

Eligibility Criteria For The Cold Chain Subsidy Scheme

  • Firstly, the applicant must have a sound financial background. You must have a Net worth more than 1.5 times the grant applied for.
  • The term loan of at least 10% of the project cost.
  • Project Appraisal Report from Bank/Financial Institution. The Appraisal must contain all the project components for which the grant is sought.
  • The date of commercial production should not be prior to the date of submission of the application.
  • Finally. no second proposal from the same applicant/company.

Eligible Projects Under The Cold Chain Subsidy Scheme

  • First of all, minimal Processing Centre at the farm level. Furthermore, it includes facilities such as weighing, sorting, grading waxing, packing, pre-cooling, Controlled Atmosphere (CA) / Modified Atmosphere (MA) cold storage, normal storage, and IQF.
  • Mobile pre-cooling vans and reefer trucks.
  • Distribution hubs with multi-product and multi-CA /MA chambers, cold storage /Variable Humidity Chambers, Packing facility, CIP Fog treatment, IQF, Ripening chamber, and blast freezing.

Related: Best Government Subsidy For Small Business In India

The scheme provides grant-in-aid @ 50% of the total cost of Plants & Machinery and Technical Civil Works in general areas. Furthermore, it provides 75% for the NE Region and difficult areas subject to a maximum of Rs.10.00 crore.

Any individual and corporate entity can apply for this funding assistance. However, you must have a business interest in providing cold chain solutions. Furthermore, you must link the producers to the processors and the market.