Subsidy For Cold Room in 2023
The Importance of Subsidies for Cold Rooms:Cold room subsidy play important role to design cold room in india.
The Importance of Subsidies for Cold Rooms: Preserving Freshness and Reducing Food Waste
Introduction
Cold-chain logistics is a thrust area for development, and considered as part of the second green revolution. Cold-chain is an end-to-end logistics bridge and provides for uninterrupted custody of the value harvested at farm-gate, up to end-consumers.The Government of India supports the development of cold-chain through the Mission on Integrated Development of Horticulture (MIDH) of the Ministry of Agriculture and Farmers Welfare. MIDH provides several incentives to interested stakeholders and promoters. Financial assistance of 35% to 50% of admissible cost of projects is granted.
In the realm of food preservation and cold storage, cold rooms play a vital role in maintaining the freshness and quality of perishable goods. These specialized refrigeration spaces are crucial for a wide range of industries, including agriculture, horticulture, pharmaceuticals, and hospitality. However, setting up and operating cold storage can be costly, especially for small and medium-sized businesses,where government subsidies come into play, providing financial assistance that encourages the adoption of cold storage technology. In this article, we will explore the significance of subsidies for cold rooms and their positive impact on reducing food waste and ensuring food security.
Addressing Food Waste
Food waste is a global concern, with millions of tons of food discarded annually. Inadequate storage and improper preservation are among the leading factors contributing to this issue. Cold rooms offer a solution to this problem by maintaining the ideal temperature and humidity conditions necessary for extending the shelf life of perishable items. By subsidizing cold room installations, governments can empower businesses to store excess produce efficiently, reducing the amount of food waste generated in the supply chain.
Ensuring Food Security
A stable and reliable food supply is a fundamental requirement for any nation's well-being. It play a pivotal role in enhancing food security by preventing post-harvest losses and maintaining a constant supply of perishable goods throughout the year. By supporting the implementation of its facilities through subsidies, governments can bolster the food security of their nations, ensuring that citizens have access to fresh and nutritious food, regardless of seasonal variations or unforeseen circumstances.
Supporting Small and Medium-Sized Enterprises (SMEs)
Small and medium-sized enterprises often struggle to invest in modern technologies due to financial constraints. By offering subsidies for cold rooms, governments can level the playing field and enable SMEs to compete more effectively with larger corporations. This support encourages businesses to adopt energy-efficient and eco-friendly refrigeration technologies, reducing their operating costs and environmental impact.
Promoting Agricultural and Horticultural Growth
The agricultural and horticultural sectors significantly contribute to a nation's economy. However, post-harvest losses due to inadequate storage facilities can hamper growth and profitability. Subsidies for cold storage encourage farmers and growers to invest in improved storage infrastructure, leading to enhanced productivity and higher quality produce. Moreover, with better storage capabilities, farmers can explore new markets and export opportunities, expanding their reach and boosting the economy.
Mitigating Climate Change Impact
Energy consumption is a considerable concern when it comes to refrigeration systems. Traditional cooling methods may rely on fossil fuels, contributing to greenhouse gas emissions and climate change. However, with advancements in energy-efficient cold storage technologies, this impact can be minimized. Government subsidies can motivate businesses to invest in eco-friendly cold storage reducing their carbon footprint and promoting sustainable practices within the industry.
Some FAQ On Subsidy For Cold Room/Storage:
Question.1 What is the purpose of government subsidies for cold rooms?
Answer .As of my last update in September 2021, I don't have specific information about government subsidies for cold rooms because it might vary from country to country and might have changed since then. However, I can provide you with a general understanding of why governments might offer subsidies for cold storage.
1.Agricultural Support: Cold rooms play a crucial role in preserving and storing perishable agricultural products, such as fruits, vegetables, and dairy products. Governments may provide subsidies for it to support farmers and ensure food security by reducing post-harvest losses and extending the shelf life of produce.
2.Food Security: Ensuring an adequate food supply for the population is a key concern for governments. Subsidies for cold storage can incentivize businesses to invest in better storage facilities, allowing for more efficient distribution and access to food, particularly in remote or underserved areas.
3.Economic Development: Cold storage are vital for several industries, including agriculture, fisheries, and pharmaceuticals. By offering subsidies, governments can encourage the expansion of these sectors, create job opportunities, and stimulate economic growth in the region.
4.Waste Reduction: Proper cold storage facilities can help reduce food waste by preventing spoilage and extending the shelf life of products. Government subsidies may be provided to incentivize businesses to adopt more sustainable practices and reduce their environmental impact.
5.Infrastructure Improvement: Supporting the development and maintenance of cold storage infrastructure can enhance the overall logistics and supply chain capabilities, leading to improved efficiency in various sectors.
6.Climate Change Adaptation: With climate change impacting weather patterns and causing more extreme temperatures, cold rooms become increasingly important for climate adaptation. Subsidies can encourage businesses to adopt climate-resilient technologies and practices.
It's important to note that the actual reasons for government subsidies for cold rooms can vary based on a country's specific economic, social, and agricultural needs. Additionally, policies and priorities may have evolved since my last update, so it's advisable to consult more recent sources or governmental websites for up-to-date information on specific subsidies related to cold rooms.
Question.2 How do cold rooms contribute to reducing food waste in the supply chain?
Answer .Cold rooms play a crucial role in reducing food waste in the supply chain by providing optimal storage conditions for perishable food items. Here are some ways in which cold rooms contribute to this reduction:
1.Temperature Control: Cold rooms maintain a controlled temperature environment, which slows down the natural ripening and deterioration processes of fruits, vegetables, and other perishables. By storing produce at the appropriate temperature, the shelf life of these items is extended, reducing the risk of spoilage and wastage.
2.Preservation of Freshness: It help preserve the freshness and quality of food products. For example, by storing fish and meat at low temperatures, they are less prone to bacterial growth, which can lead to spoilage. This allows for longer storage and distribution times, reducing the likelihood of unsold products going to waste.
3.Seasonal Availability: Cold rooms enable the storage of seasonal produce when it is in abundance and at its lowest cost. By saving excess produce during peak seasons, these items can be gradually released into the market during off-peak periods, maintaining a consistent supply throughout the year and reducing price fluctuations that can lead to waste.
4.Extended Distribution Range: With proper cold storage, perishable items can be transported over longer distances without significant degradation. This enables farmers and producers to access more distant markets, reducing the need for regional overproduction and minimizing food waste caused by limited local demand.
5.Reducing Surplus: By allowing producers and suppliers to plan and manage their inventory effectively, cold rooms help prevent the accumulation of surplus perishable goods that would otherwise go to waste due to insufficient demand or short shelf life.
6.Improved Logistics: Cold rooms facilitate better logistics and inventory management. With a well-functioning cold chain, businesses can accurately predict demand, manage stock levels, and ensure timely deliveries, reducing the likelihood of products expiring or becoming unsellable.
7.Food Processing: Cold rooms are often used in conjunction with food processing facilities, enabling the temporary storage of raw materials and finished products. This coordination ensures that products are properly processed and distributed, minimizing losses due to inefficient handling.
Overall, it are a critical component of the cold chain infrastructure, and their proper use helps reduce food waste by preserving the quality and freshness of perishable items throughout the supply chain, from the farm or factory to the consumer's table.
Question.3 What role do subsidies play in promoting food security through cold room installations?
Answer.Subsidies can play a significant role in promoting food security through cold room installations by providing financial incentives and support to businesses, farmers, and food producers. Here's how subsidies contribute to enhancing food security in the context of it:
1.Infrastructure Investment: Cold rooms require significant initial investment and ongoing maintenance costs. Subsidies can help reduce these financial barriers, making it more affordable for businesses and farmers to install and operate cold storage facilities. As a result, more producers can access cold storage capabilities, leading to increased storage capacity and improved preservation of perishable foods.
2.Reducing Food Loss and Waste: Cold rooms help prevent food losses by extending the shelf life of perishable items, reducing spoilage, and preventing wastage. By subsidizing the installation and operation of cold rooms, governments encourage the adoption of proper storage practices, ultimately leading to less food waste in the supply chain.
3.Diversifying Food Sources: Cold rooms allow for the storage of various food items, including seasonal produce. Subsidies can incentivize businesses and farmers to store surplus produce during peak seasons, ensuring a more consistent supply of food throughout the year. This diversification helps mitigate food shortages during off-seasons and supports food security by ensuring a steady availability of produce.
4.Improved Market Access: Subsidies for cold room installations can lead to the development of cold chain infrastructure, allowing farmers and producers to reach more distant markets. By expanding market access, subsidies enable food to be distributed to regions that may have limited local production, thus reducing food shortages and increasing overall food security.
5.Climate Resilience: Climate change can disrupt traditional agricultural practices and reduce crop yields. Cold rooms help adapt to climate-related challenges by allowing for the storage of excess produce during periods of abundance. Subsidies that promote the use of its can enhance climate resilience and contribute to stable food supplies despite changing weather patterns.
6.Supporting Small-scale Farmers: Subsidies targeted at small-scale farmers can help level the playing field, allowing them to compete with larger producers in terms of storage and distribution capabilities. By enabling small farmers to access cold room facilities, they can reduce post-harvest losses and gain better control over their produce's distribution, thereby contributing to food security at the local level.
7.Emergency Preparedness: Cold rooms can be crucial during times of crises, such as natural disasters or pandemics, when regular food supply chains may be disrupted. Subsidies can encourage businesses and governments to invest in cold storage as part of their emergency preparedness plans, ensuring the availability of essential food items during challenging times.
Overall, subsidies for cold room installations support food security by reducing food losses, diversifying food sources, increasing market access, enhancing climate resilience, and assisting small-scale farmers. By creating a more robust cold chain infrastructure, subsidies contribute to a more efficient and reliable food supply chain, helping to ensure that sufficient and safe food is available to meet the needs of the population, especially during times of uncertainty or scarcity.
Question.4.How can small and medium-sized enterprises (SMEs) benefit from subsidies for cold rooms?
Answer .Subsidies for cold rooms can provide significant benefits to small and medium-sized enterprises (SMEs), empowering them to enhance their operations, reduce costs, and improve overall business efficiency. Here are some ways in which SMEs can benefit from subsidies for it:
1.Cost Savings: One of the most apparent benefits of subsidies is the cost savings they offer. Cold rooms require substantial initial investment and ongoing operational expenses. Subsidies can help offset these costs, making it more affordable for SMEs to acquire and maintain cold storage facilities, which they might not have been able to afford otherwise.
2.Improved Product Quality: Cold rooms provide optimal storage conditions for perishable products, helping maintain their quality and freshness for an extended period. By using subsidized cold rooms, SMEs can ensure that their goods reach the market in better condition, thereby enhancing their reputation and attracting more customers.
3.Extended Shelf Life: Cold rooms slow down the natural decay processes of perishable items, extending their shelf life. This benefit is particularly advantageous for SMEs dealing with seasonal produce or goods with a short shelf life. By storing products in cold rooms, SMEs can better manage inventory and reduce wastage due to spoilage.
4.Market Access and Diversification: Subsidized cold rooms can enable SMEs to access new and distant markets. With better storage capabilities, they can expand their reach, tapping into regions that may have limited local production. This market diversification can lead to increased sales and more stable revenue streams for SMEs.
5.Increased Supply Chain Efficiency: Cold rooms are an essential part of the cold chain infrastructure, ensuring that products remain fresh and safe during storage and transportation. For SMEs, integrating cold rooms into their supply chain can lead to better inventory management, reduced losses, and improved overall operational efficiency.
6.Support for Agricultural and Food Processing SMEs: SMEs engaged in agriculture, food processing, or agri-food businesses can especially benefit from subsidies for cold rooms. These businesses often deal with perishable products that require proper storage to retain their value. Subsidized it enable them to adopt better post-harvest handling practices and expand their offerings, contributing to their growth and competitiveness.
7.Climate Resilience: SMEs can face challenges related to climate change and extreme weather events that impact their supply of raw materials or finished products. Subsidized cold rooms provide them with an opportunity to store excess produce during times of abundance, mitigating the impact of unpredictable weather patterns and contributing to their climate resilience.
8.Food Safety and Compliance: Cold rooms help maintain food safety standards by reducing the risk of contamination and spoilage. SMEs that adhere to these standards are more likely to gain the trust of consumers and comply with regulatory requirements. Subsidies can encourage SMEs to invest in the necessary infrastructure and training to meet these standards.
9.Business Growth and Competitiveness: With improved storage capabilities and better product quality, SMEs can position themselves as reliable suppliers in the market. As a result, they may gain a competitive advantage over peers who lack similar storage facilities.
By supporting SMEs with subsidies for cold rooms, governments and organizations foster a more robust and sustainable business environment. SMEs are essential contributors to economic growth and employment, and these subsidies can empower them to play a more significant role in the agricultural and food sectors while enhancing overall food security and availability for the population.
Question.5.In what ways do cold room subsidies support agricultural and horticultural growth?
Answer.Cold room subsidies can provide valuable support to agricultural and horticultural growth by addressing several key challenges and enabling farmers to optimize their operations. Here are some ways in which it contribute to the growth of these sectors:
1.Post-Harvest Loss Reduction: Cold rooms help preserve the quality and freshness of agricultural and horticultural products after harvest. By slowing down the natural ripening and decay processes, cold storage reduces post-harvest losses due to spoilage, thereby increasing the overall yield available for sale and consumption.
2.Market Access and Diversification: Subsidized cold rooms enable farmers to store their produce for more extended periods, allowing them to access distant markets that may have higher demand or better prices. This market diversification enhances farmers' earning potential and encourages them to cultivate a broader range of crops or horticultural products suited to different markets.
3.Value-Added Processing: Cold rooms facilitate value-added processing activities, such as sorting, grading, and packaging of agricultural and horticultural products. Subsidies can encourage farmers to invest in such infrastructure, enabling them to offer higher-quality produce to consumers and access specialized markets.
4.Stabilizing Prices: With cold storage facilities, farmers can store excess produce during times of abundance and release it gradually during periods of low supply. This practice helps stabilize prices in the market and prevents extreme fluctuations that could negatively impact farmers' incomes.
5.Crop Planning and Seasonal Management: Cold rooms support better crop planning and management. Farmers can harvest their crops at the optimal time and store them until market conditions are favorable, leading to improved resource utilization and reduced waste.
6.Encouraging Investment: The availability of subsidies for cold rooms encourages farmers to invest in modern infrastructure and technologies. This, in turn, attracts more private and public investment in the agricultural and horticultural sectors, contributing to overall growth and modernization.
7.Improving Food Safety Standards: Cold rooms help maintain food safety standards by minimizing the risk of contamination and foodborne illnesses. Subsidies can incentivize farmers to adopt safer handling practices, which benefits both consumers and the reputation of the agricultural and horticultural industries.
8.Climate Resilience: As climate change affects weather patterns and growing conditions, cold rooms become essential for climate resilience in agriculture and horticulture. Subsidies can encourage farmers to adopt cold storage as a part of their climate adaptation strategies, allowing them to better manage fluctuations in crop yields caused by extreme weather events.
9.Enhancing Export Opportunities: Cold rooms play a vital role in meeting the quality and safety requirements of international markets. Subsidies that support cold storage infrastructure can help agricultural and horticultural producers meet export standards, opening up new opportunities for international trade and revenue generation.
By supporting agricultural and horticultural growth through cold room subsidies, governments and organizations can drive sustainable development in these sectors, enhance food security, and create a more resilient and competitive agricultural industry.
Question.6.What criteria do businesses need to meet to qualify for cold room subsidies?
Answer.The criteria for businesses to qualify for cold room subsidies can vary depending on the specific subsidy program and the policies of the government or organization offering the financial support. However, some common criteria that businesses may need to meet to be eligible for cold room subsidies include:
1.Type of Business: Typically, businesses eligible for cold room subsidies are those involved in agriculture, horticulture, food processing, fisheries, or any other sector dealing with perishable products that require cold storage for preservation.
2.Size of Business: Some subsidy programs may specifically target small and medium-sized enterprises (SMEs) or certain categories of businesses. Large enterprises may have separate eligibility criteria or be excluded from certain subsidy schemes.
3.Compliance with Regulations: Businesses seeking subsidies for cold rooms may need to demonstrate compliance with relevant health, safety, and environmental regulations, including food safety standards and building codes.
4.Storage Capacity: There might be requirements regarding the minimum or maximum storage capacity of the cold room that businesses need to meet to qualify for the subsidy.
5.Location: Some subsidy programs may prioritize businesses in specific regions or areas, especially those with limited access to cold storage facilities or areas facing food security challenges.
6.Intended Use: Businesses may need to demonstrate a clear and genuine need for cold storage facilities, specifying how they plan to use the cold rooms and how it aligns with their business operations and goals.
7.Financial Viability: Subsidy providers may assess the financial viability of the business, ensuring that the subsidy will be put to good use and that the business can sustain its operations even after receiving the subsidy.
8.Environmental Impact: Some subsidy programs may consider the environmental impact of cold room installations, giving preference to businesses that adopt energy-efficient and sustainable technologies.
9.Business Plan: Applicants may need to submit a business plan outlining how the cold storage facilities will be integrated into their operations and how the subsidy will contribute to their growth and competitiveness.
10.Job Creation: In some cases, subsidy programs may prioritize businesses that can demonstrate the potential for job creation and positive economic impact on the local community.
It's important to note that these criteria are general examples, and the specific eligibility requirements for cold room subsidies can differ significantly from one program to another. Businesses interested in applying for cold room subsidies should thoroughly research the available programs, review the eligibility criteria, and reach out to the relevant subsidy providers or government agencies for detailed information and application procedures.
Question7.Are there any limitations or restrictions on the use of cold room subsidies?
Answer .Yes, there can be limitations and restrictions on the use of cold room subsidies to ensure that the financial support is utilized appropriately and for the intended purposes. These limitations and restrictions may vary depending on the specific subsidy program and the policies of the providing organization or government. Some common limitations and restrictions on the use of cold storage subsidies include:
1.Intended Use: Subsidies may be granted explicitly for the purpose of cold room installation or upgrading existing cold storage facilities. Businesses may be required to use the subsidy funds solely for the specified purposes and not for other unrelated expenses.
2.Storage Capacity: There might be limitations on the size or capacity of the cold room that can be subsidized. The subsidy may cover only a certain portion of the total cost based on the approved capacity.
3.Eligible Expenses: Some subsidy programs may specify the eligible expenses that can be covered by the subsidy, such as equipment costs, construction expenses, or energy-efficient upgrades.
4.Location Restrictions: Subsidies may be limited to businesses located in specific regions or areas designated by the subsidy provider as priority locations.
5.Timeframe: There may be deadlines or timeframes within which the cold room must be installed or operational to qualify for the subsidy.
6.Reporting and Compliance: Recipients of cold room subsidies may be required to submit periodic reports, detailing how the subsidy funds were utilized and providing information on the it's operation.
7.Environmental Standards: Subsidies for cold rooms may come with requirements to meet certain environmental standards or adopt energy-efficient technologies to reduce the facility's impact on the environment.
8.Business Continuity: Subsidy programs may require businesses to commit to maintaining the cold room for a specific period, ensuring the facility's continued operation and avoiding misuse of the subsidy.
9.Documentation and Proof: Businesses may need to provide documentation and evidence of compliance with the subsidy program's criteria and the proper use of the subsidy funds.
10.Public Benefit: Some subsidy programs may have an underlying objective to benefit the public, such as improving food security or reducing food waste. As such, businesses may need to demonstrate how their use of the subsidy aligns with these broader objectives.
It's essential for businesses applying for cold room subsidies to thoroughly review the terms and conditions of the subsidy program and understand any limitations or restrictions associated with the subsidy. Adhering to these limitations and using the subsidy funds responsibly can help ensure that the business receives the full benefits of the financial support while fulfilling the program's intended goals.
Question.8.How can businesses apply for government subsidies in india to set up or upgrade their cold room facilities?
Answer .As of my last update in September 2021, businesses in India can apply for government subsidies to set up or upgrade their cold storage facilities through various government schemes and programs. The availability and details of these schemes may change over time, so it's essential to refer to the latest information from the Indian government or relevant authorities. However, here are general steps you can follow to inquire about and apply for cold room subsidies in India:
1.Research Available Subsidy Schemes: Start by researching the various government subsidy schemes related to cold room installations or upgrades. Look for programs offered by the central government and state governments, as well as those initiated by relevant departments or agencies related to agriculture, food processing, horticulture, or rural development.
2.Contact Government Departments: Reach out to the concerned government departments or agencies responsible for administering the subsidy schemes. These could include the Ministry of Food Processing Industries (MOFPI), Ministry of Agriculture and Farmers' Welfare, or State Horticulture Departments, among others.
3.Check Eligibility Criteria: Review the eligibility criteria for the subsidy schemes you are interested in. Check whether your business, location, and cold room project meet the specific requirements outlined by the subsidy program.
4.Prepare Necessary Documents: Gather all the required documents and information necessary for the application process. This may include business registration documents, project proposal, cold room specifications, financial statements, and other supporting materials.
5.Submit Application: Complete the application form for the chosen subsidy scheme and submit it to the relevant government department. Be sure to follow the guidelines and instructions provided by the department to ensure your application is complete and accurate.
6.Wait for Approval: After submitting the application, wait for the authorities to review and process your application. The approval process may take some time, so be patient.
7.Comply with Requirements: If your application is approved, make sure to comply with all the terms and conditions set by the subsidy scheme. This may include using the subsidy funds as per the specified guidelines and meeting any reporting or compliance requirements.
8.Monitor Progress: Keep track of the progress of your cold room project and follow up with the concerned authorities if needed. Make sure to fulfill any obligations required to maintain the subsidy support.
9.Avail Subsidy Benefits: Once your cold room project is completed or upgraded, and all requirements are met, you should be able to avail the approved subsidy benefits as per the terms of the scheme.
Remember that government subsidy programs may have specific timelines for applications, and funds may be limited, so it's crucial to stay updated with the latest announcements and deadlines to ensure you don't miss the opportunity to apply for these subsidies. Additionally, consider seeking assistance from local business development or agriculture-related organizations for guidance on the application process.
Post-Harvest Management (Normal Storage and Cold-chain Components)
| SN | Description | Cost Norms for MIDH (admissible cost) |
| 1 | Functional Pack House | Rs 4.0 lakh / unit with size of 9m x 6m |
| 2 | Integrated (modern) Pack houses | Rs 50.0 lakh/ unit with throughput capacity of 16 MT/day, with facilities for conveyor belt sorting, grading, washing, drying & weighing. |
| 3 | Precooling Unit | Rs 25.0 lakh/ unit with batch capacity of 6 MT. |
| 4 | Cold Room (staging) | Rs 15.0 lakh/ unit of 30 MT storage capacity |
| 5 | Mobile Precooling Unit | Rs 25 Lac per Unit. |
| 6 | Cold Storage Type 1 : basic mezzanine structure with large chamber(> 250MT) type with Single temperature Zone |
Rs 8000/MT upto 5000 MT capacity. 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 |
| 7 | Cold Storage Type 2: PEB structure for Multi-temperature and product use, more than 6 chambers (<250MT) and basic material handling equipment. |
Rs 10000/MT upto 5000 MT capacity 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 |
| 8 | Refrigerated Transport Vehicles | Rs 26 lakh for 9 MT, pro-rata but not below 4 MT Rs 30.00 lakh for 15 MT, pro-rata between 9 to 15 MT. |
| 9 | Ripening Chamber | Rs 1.0 lakh/MT, ceiling of 300MT |
| 10 | Evaporative / Low Energy cool chamber |
Rs 5.00 lakh/unit for 8 MT capacity |
| 11 | Low cost onion storage | Rs 1.75 lakh/unit of 25MT |
| 12 | Pusa Zero energy cool chamber | Rs 4000 / unit of 100 kg |
| 13 | Integrated Cold-chain supply system |
Rs 600 lakh/project using two or more of above components |
| 14 | Integrated Post-harvest Management Projects eg. Packhouses, Ripening unit, Reefer vans, Retail Outlets, Precooling, Primary processing, etc. |
Rs 145 lakhs per project. Components of postharvest management can be taken up as individual stand-alone projects as guided by norms listed above |
| Items 1, 10, 11, 12: subsidy at 50% of total cost. Others: Credit Linked Back-ended subsidy at 35% in General areas / 50% in Hilly & Scheduled areas. Item 6, 7, 8 above are marked differentiated by capacity for implementing by NHB exclusively. Item 14 marked above under NHB and allows standalone components as per NHM norms Receipt of application is not equal to subsidy sanction. Minimum system standards must be followed. Applicants can select and multiple components with purpose to develop activity integration with existing facilities. |
Details of Cold Chain Add-on Components (for CA and modernisation )
| SN | Description | Cost Norms for MIDH (admissible cost) |
|
1 |
CA Generator | Rs 125 Lakh Per Unit, maximum of 2 units |
| 2 | Specialised CA doors | Rs 2.50 Lakh per door, maximum 20 doors |
| 3 | CA Tents | As per original invoice, maximum 5 enclosures |
| 4 | Programmable Logic Controller | 50% of cost of original invoice, Maximum Rs 10 lakh |
| 5 | Dock Leveller System | Maximum Rs 7 Lakh per Unit, max 5 units |
| 6 | WRDA System | 100 % cost of original invoice, maximum Rs 2 lakh |
| 7 | Specialised Packaging lines | 100 % cost as per invoice, maximum Rs 15 lakh per project |
| 8 | High Reach handling equipment | Rs 17 Lakh per unit, for max 2 units |
| 9 | Modernisation of refrigeration | 50% of cost, max Rs 100 lakh @ Rs 2500/MT capacity |
| 10 | Modernisation of insulation | 50% of cost, max Rs 100 lakh @ Rs 1500/MT capacity |
| 11 | Reefer Container | Maximum Rs 6 lakhs per 9 MT (20 ft. reefer container) |
| 12 | Advanced Grader | 100% of invoice cost, max Rs 75 lakhs per line |
| 13 | Stacking System | 100% of invoice cost, maximum Rs 2000/MT |
| 14 | Retail Shelf/Equipment | Maximum Rs 10 lakh per establishment |
| 15 | Alternate technology (Vapour absorption, Solar, hybrids, etc.) |
100% of invoice cost, maximum Rs 35 lakhs per project |
| Above section applies for technology add-on for all projects under NHB and NHM Credit Linked Back-ended subsidy at 35% in General areas / 50% in Hilly & Scheduled areas. Maximum permissible subsidy for combination of add-ons is Rs 750 lakhs |
Other Cold-chain allied Components
| SN | Description | Cost Norms of MIDH (admissible cost) |
| 1 | Retail Markets/outlets (Environmentally controlled) |
Rs 15 lakh/unit |
| 2 | Static/Mobile Vending cart/platform with cool chamber |
Rs 30,000/unit |
| 3 | Long distance Transport Solution | Rs 2000.00 lakh |
| Item 1, 2: Credit Linked Back-ended subsidy at 35% in General area / 50% in Hilly & Scheduled areas. Item 3: Subsidy at 50% of the total cost. |
Conclusion
Cold rooms are an essential component of the global cold chain infrastructure, ensuring that perishable goods reach consumers with their freshness intact. Government subsidies for it play a critical role in tackling food waste, enhancing food security, supporting small and medium-sized enterprises, promoting agricultural growth, and mitigating the climate change impact. By incentivizing the adoption of these innovative refrigeration technologies, governments can create a more sustainable and efficient food supply chain, benefitting both the economy and the environment. As we move towards a more sustainable future, investing in it subsidies should be a priority for policymakers worldwide.
You can Also get More info about government subsidy in 2023 Click link below.
Who can apply?
Private Industry, Entrepreneurs, Cooperatives, Farmer groups, PSUs.
When to apply?
Scheme is demand driven and can be availed all through the year.
Where to apply?
Office of local Horticulture Mission or National Horticulture Board.
Components: Modern Pack-houses with Pre-coolers, Cold Rooms, Cold Stores, Reefer Vehicles, Reefer Containers, Ripening Units, AlternateEnergy, Retail shelves, Vending carts.
Requirements: Fully funded project with loan sanctioned from a nationalised Bank. Subsidy is directly linked to credit availed to incentivise owners by reducing their credit burden. The supported components are explained in the scheme Guidelines, and should abide minimum System Standards.
Guidelines & System Standards: See www.MIDH.gov.in or www.NCCD.gov.in For more information: Contact the closest State Horticulture Department or your State’s Nodal Officer for Cold-chain Development (NOCD).