CAPITAL INVESTMENT SUBSIDY FOR CONSTRUCTION/EXPANSSION/MODERNISATION OF COLD STORAGES/STORAGES OF HORTICULTURE PRODUCT
(25% subsidy from National Horticulture Board (NHB))
Objectives
- To promote setting up of cold storages/storages in the country for reducing post harvest losses.
- Creation of 12 lakh tonnes and modernization/rehabilitation of 8 lakh tonnes of cold storages and addition of 4.5 lakh tonnes onion storages.
Components
Cold Storages including Controlled Atmosphere (CA) and Modified Atmosphere (MA Stores, pre-cooling units and mother Storages for onion etc.
Eligible Organisations
The eligible promoters includes NGO's, Association of Growers. Partnership / Proprietary Firms, Companies, Corporations, Cooperatives, Agricultural Produce Marketing Committees, Marketing Boards / Committees and Agro-Industries Corporations.
Pattern of Assistance
- 25% promoters' contributions;
- 50% term loan by banks at PLR + 1% through NABARD refinance. NABARD would provide refinance to Commercial Banks/RRBs/ADFCs/SCBs/SCARDBs @ 90% of the amount financed by the banks for which the interest will be charged to financing banks at 8.5% p.a. (however, quantum of refinance is 95% in the case of SCARDBs in North-Eastern Region and Sikkim);
- 25% back-ended capital investment subsidy by NHB;
- Wherever term loans are not raised from institutional sources and projects are funded through internal resource generation, the NHB would provide capital subsidy directly to such units on the completion of the projects;
- The Subsidy would flow from NHB and operated by NABARD, through commercial/cooperative banks/RRBs/ ADFCs/SCARDBs and by NCDC where cooperatives seek loan from NCDC;
- Wherever banks are not availing refinance from NABARD, the rate of interest to be charged by such banks should not be more than PLR + 1% and all other terms and conditions of the scheme are complied with. However, in this case the subsidy would be released only through NABARD and monitoring of such cases shall also be through NABARD.
- In the case of cold storages/storages projects financed by State Level Financing Institutions, such projects shall be covered for granting subsidy provided all the terms and conditions under the scheme, including charging the rate of interest at PLR + 1% are followed by such financial institutions and the NHB subsidy would be released through the respective State FIs;
- The cost of 5000 MT capacity for new cold storage and expansion of existing capacity would not exceed to Rs. 2.00 crore. Subsidy @ 25% would not exceed Rs. 50.00 lakh per project, including for the CA/MA Stores and projects of higher capacity. However, for the projects in the North-Eastern States @ 33.33%. However, maximum subsidy admissible would be Rs. 60.00 lakhs.
- Projects upto 5000 MT capacity would be promoted for wider dispersal. Cold storage capacity may vary from 10 MT to 5000 MT (i.e. the cold storages may be established for capacity of different sizes i.e. 10/50/100/500/1000/2000/5000 MT etc.) depending upon volume, value of the commodities to be stored, technical feasibility, financial viability etc. In the case of pre-cooling units and CA/MA stores, the capacity may be even below 10 MT;
- While administering the scheme, the criteria of subsidy linked to the cold storage capacity shall be followed. For new cold storage/ expansion, capital investment subsidy will be @ Rs. 4000/- per tonne capacity additionally created, subject to the 25% of the project cost. Capacity of cold storages would be calculated on the basis of 3.4 cubic metres per tonne or 120 cubic feet per tonne. For modernisation of existing cold storages, subsidy @ Rs. 1000/- per tonne capacity would be provided, subject to the 25% of the project cost. For other storages, subsidy would be @ Rs. 2,000/- per tonne capacity created/to be created.
- For calculating the space/volume requirement for some of the commodities, the parameters provided by NCDC as indicated in Annexure-2 are required to be followed. However, for the purpose of calculating the amount of subsidy, the capacity of cold storage will be decided as mentioned above.
- Storage Conditions (Temperature, Humidity, Storage period, Freezing point etc.) of various commodities are given in Indian Horticulture Database 2000 published by the Board. A copy of the Commodity Storage Manual for perishable commodities prepared by International Association of Refrigerated Warehouses (LARW) and World Food Logistics Organisation (WFLO) is available with all officers of NHB for further reference.
- This capital investment subsidy scheme will be implemented only in those States/UTs/Area which do not control rentals for cold storages under any statutory or administrative order.
- Emphasis shall be laid on the following points:-
- a) Reducing PHM losses with Multi-Chamber (at least two chambers) and Multi- Product facilities.
- b) Adopting modern Designs/Technology and Energy Saving Equipments/Devices to avoid obsolescence of Machinery, etc.
- c) Making improvement in technology like shifting from Diffuser System to Gravity Cooling System/Fincoil System, etc;
- The respective Banks/FIs/NCDC/NABARD, etc. will adhere to their own appraisal norms. However, copies of the checklist to facilitate the compliance of the requirements of formulation/ scrutiny/appraisal in respect of cold storage and storage for onions are given in Annexure 3 & 4, respectively.
- The value of land to be computed in the project cost should not exceed 10% of the project cost. In other words, in case the cost of land exceeds 10% of the cost of project, such value to the extent of 10% of the total cost should only be computed in the project cost. The cost of land computed in the project cost is to be reckoned towards the margin money required to be met by the enterprise. The above is also subject to the following conditions:
- i) The cost of the land will be computed in the project cost only when the land is to be purchased by the enterprise
- ii) The cost of the land should be the purchase value and not the market value
- iii) The value of that portion of the land which is need based for the project only is included.
- Cold storages/storages may be treated as infrastructure for financing.