Overview
Cold storage plays a vital role in preserving perishable goods such as fruits, vegetables, meat, dairy products, and seafood. With growing demand in the agricultural, food processing, and fisheries sectors, cold storage infrastructure helps extend the shelf life of these products, reduce wastage, and ensure their availability throughout the year. The Indian government offers a range of subsidies for setting up cold storage units to support businesses in maintaining product quality, meeting consumer demand, and boosting profitability.<br
Government Schemes Providing Cold Storage Subsidy
Several government initiatives help entrepreneurs set up cold storage infrastructure by offering subsidies based on the type of product and project scale. These schemes include:
1. 1. PMMSY (Pradhan Mantri Matsya Sampada Yojana)
o Sector Focus: Fisheries (cold storage for seafood, aquaculture, and fish processing).
o Eligibility: Available for fisheries-based cold storage projects with 10 to 50 ton capacity.
o Subsidy: Financial assistance of 40%-80% of the project cost depending on the project location (urban or rural).
2.National Horticulture Board (NHB)
o Sector Focus: Horticultural products (fruits, vegetables, flowers, and spices).
o Eligibility: Available for cold storage facilities with larger capacities, up to 1,000 tons for large-scale horticulture projects.
o Subsidy: Assistance in the form of 50%-75% subsidy depending on the size and location of the project.
Ministry of Food Processing Industries (MoFPI)
o Sector Focus: Food processing (dairy, meat, and processed foods).
o Eligibility: Cold storage units for processed foods, including meat and dairy.
o Subsidy: Financial support for setting up medium and large-scale cold storage facilities, offering up to 50% subsidy.
4. Ministry of Agriculture & Farmers Welfare
o Sector Focus: Agricultural products (grains, pulses, and other perishables).
o Eligibility: Cold storage for agricultural produce, including grains and vegetables, in rural and semi-urban areas.
o Subsidy: 30%-50% subsidy on capital costs, with priority for projects in underserved regions.
5. APEDA (Agricultural and Processed Food Products Export Development Authority)
o Sector Focus: Export-oriented cold storage for agricultural and processed food products.
o Eligibility: Suitable for businesses involved in exporting perishables.
o Subsidy: 50%-75% subsidy for setting up cold storage and preservation facilities for export markets.
Project Cost and Subsidy Overview
The government offers subsidies based on the capacity and location of the cold storage unit. Here’s a general overview:
• PMMSY (Fisheries Sector):
o 10-50 Ton Capacity: Subsidy covers 50%-75% of the project cost.
• NHB (Horticulture Sector):
o Up to 1,000 Ton Capacity: Subsidy of 50%-75% depending on capacity and region.
• MoFPI (Food Processing):
o Small to Large-Scale Units: Up to 50% of the capital cost.
• Ministry of Agriculture:
o 30%-50% Subsidy for agricultural produce storage, based on project location.
Key Benefits of Cold Storage Subsidy
• Reduce Wastage: Cold storage allows businesses to preserve products and reduce spoilage, which is crucial for industries dealing with perishable goods.
• Increase Shelf Life: Extending the shelf life of perishable products means better profitability and reduced losses.
• Enhanced Profitability: Cold storage units enable businesses to store goods longer and meet consumer demand, even during off-seasons.
• Government Support: With financial aid covering a significant portion of the project cost, businesses can start cold storage operations with less capital investment.
Eligibility Criteria
To qualify for cold storage subsidies, applicants need to meet certain criteria:
• Business Type: Must be in the fisheries, agriculture, horticulture, or food processing sectors.
• Capacity Requirements: Each scheme has specific capacity requirements, ranging from small-scale units (up to 10 tons) to large-scale facilities (up to 1,000 tons).
• Location: Some schemes prioritize projects in rural or underdeveloped areas.
• Financial Health: Proof of financial stability and the ability to complete the project is required.
Why Invest in Cold Storage?
The cold storage industry presents immense opportunities due to rising demand in sectors like food processing, agriculture, and fisheries. By utilizing government subsidies, businesses can establish efficient storage units that enhance product quality, reduce losses, and improve profit margins. Government-backed incentives make it easier to invest in state-of-the-art cold storage solutions without bearing the full financial burden.
How Dhannaseth Can Help You
At Dhannaseth, we provide end-to-end support for businesses looking to take advantage of cold storage subsidies. Our services include:
• Expert Consultation: We offer tailored advice on which government subsidy scheme is best suited to your business needs.
• Application Assistance: Our team helps you prepare and submit subsidy applications, ensuring compliance with all government regulations.
• Document Preparation: We assist with all necessary documentation, such as project proposals, business plans, and financial statements.
• Follow-up Support: We stay on top of your application progress, ensuring timely approvals and addressing any queries from government departments.
• Feasibility Analysis: We conduct thorough feasibility studies to determine the viability of your cold storage project and recommend solutions to optimize ROI.
How to Apply
To apply for cold storage subsidies under the relevant government schemes, you need to approach the following departments:
• PMMSY: For fisheries-related projects.br>
• NHB: For horticulture-related cold storage.br>
• MoFPI: For food processing-related cold storage.br>
• APEDA: For export-based cold storage.br>
• Ministry of Agriculture: For agricultural products storage.br>
Ensure your project meets the eligibility requirements, and Dhannaseth will guide you through the entire process.
Services Highlight Included:
• Cold storage subsidy
• Government cold storage schemes
• Fisheries cold storage
• Agricultural cold storage subsidy
• Horticulture cold storage
• Food processing cold storage
• Subsidy for cold storage unit
• Cold storage project cost
• Cold storage infrastructure in India
• Government schemes for cold storage
Document
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
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