Detailed Information on Subsidy for Setting up Cold Chain in India
What is Cold Chain?
The cold chain encompasses a series of interconnected facilities including cold storage, cold transport, and value addition centers. It ensures the seamless preservation and transportation of perishable goods from farm to consumer, maintaining optimal temperatures throughout.
Eligibility to Set up a Cold Chain:
- Individuals, groups of entrepreneurs, corporates, and industries interested in cold chain solutions can establish integrated cold chain and preservation infrastructure.
- The setup facilitates the linkage between producers, processors, and marketers.
Criteria for Obtaining Financial Assistance:
- To qualify for financial aid, the unit must establish any two of the following facilities:
- Production Facility: Minimal processing center, sorting, grading, packing, pre-cooling, cold storage, and freezing.
- Transport Facility: Mobile pre-cooling vans, reefer trucks for temperature-controlled transportation.
- Distribution Facility: Distribution hubs with cold storage, packing, and freezing capabilities.
Financial Assistance Provided by MOFPI:
- The Ministry of Food Processing Industries (MOFPI) offers a grant-in-aid of:
- 50% of the total cost of plant, machinery, and technical civil works in General areas.
- 75% for the Northeastern region including Sikkim and difficult areas (J&K, Himachal Pradesh, and Uttarakhand), capped at Rs. 10 crore.
Disbursement of Financial Assistance:
- The assistance is disbursed in three installments, contingent upon the promoter’s contribution and project progress:
- 1st Installment: 25% of the grant after 25% of promoter’s contribution and term loan utilization.
- 2nd Installment: 50% after further project progress and utilization of the 1st installment.
- 3rd Installment: Final 25% after completion of the project, commercial operation commencement, and full utilization of funds.
Application Process:
- Interested parties must apply to the Ministry of Food Processing Industries in India using the prescribed format.
- Alternatively, they can seek assistance from IndiaFilings Business Experts to facilitate the application process and obtain approval.
Conclusion:
The subsidy scheme offered by MOFPI presents a significant opportunity for entrepreneurs and industries to establish modern cold chain infrastructure in India. Understanding the eligibility criteria, financial assistance structure, and application process is essential for successful participation in this scheme.
