The objective of the Scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi product/ multi temperature cold storage, CA storage, packing facility, IQF, blast freezing in the distribution hub and reefer vans, mobile cooling units for facilitating distribution of horticulture, organic produce, marine, dairy, meat and poultry etc. The scheme allows flexibility in project planning with special emphasis on creation of cold chain infrastructure at farm level.

The integrated cold chain project is set up by Partnership / Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central / State PSUs, etc. subject to fulfilment of eligibility conditions of scheme guidelines.

The scheme is under implementation since 2008.

The scheme aims to facilitate the establishment of a strong cold chain facility for agricultural, horticultural, dairy, fish & marine, poultry & meat products by establishing linkage from farm gate to the consumer, end to end, to reduce losses through efficient storage, transportation and minimal processing. The different components of the Cold Chain projects are as under:

• Minimal Processing Centre at the farm level and centres is to have facility for weighing, sorting, grading waxing, packing, pre-cooling, Control Atmosphere (CA)/ Modified Atmosphere (MA) cold storage, normal storage and Individual Quick Freezing(IQF).
• Mobile pre-cooling vans and reefer trucks.
• Distribution hubs with multi products and multi Control Atmosphere (CA)/ Modified Atmosphere(MA) chambers/ cold storage/ Variable Humidity Chambers, Packing facility, Cleaning in Process (CIP) Fog treatment, Individual Quick Freezing (IQF) and blast freezing.
• Irradiation facility.

Eligible Components

Eligible facilities for calculation of grant

Assistance under the scheme can be availed for creation of the following facilities:

(a) Integrated Pack-house (with mechanized sorting & grading line/ packing line/ waxing line/ staging cold rooms, etc.)

(b) Ripening Chamber(s)

(c) Cold Storage Unit(s) [Associated with value addition]

(d) Controlled Atmosphere (CA) storage [Associated with value addition]

(e) Frozen Storage/Deep freezers [Associated with value addition]

(f) IQF line, Tunnel Freezer, Spiral Freezer, Blast Freezer, Plate Freezer

(g) Vacuum Freeze Drying

(h) Milk Chilling / Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing. (Maximum 50 nos. of Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit to be assisted per project)

(i) Poultry/Meat/Marine/Fishery Processing Unit

(j) Packaging line for chilled /frozen/temperature controlled products

(k) Food Irradiation unit

(l) Refrigerated/ Insulated transport

(m) Pre Cooling Unit(s)

(n) Mobile pre-coolers

(o) Retail refrigerated carts, temperature controlled solar powered retail carts (maximum 10 numbers to be assisted per project)

(p) Reefer boats (maximum 10 numbers to be assisted per project)

(q) Refrigerated Containers including multi-modal container units

(r) Renewable/ alternate energy technologies (solar, bio-mass, wind etc.) for the project. [maximum permissible cost is ?35 lakh, as per MIDH norms]

(s) Accessories/support infrastructure/ utilities such as fixed racking system in Cold/CA storage, fork lifts, reach trucks, bins, insulated fish boxes, pallets, dock levellers, mezzanine flooring, ETP, boiler, CIP unit, Depodder, Peeler, Slicer/Dicer, Blancher, sorting/grading line, etc.

(t) In-house product testing laboratory

(u) Any other modern technology for temperature controlled storage, processing, value addition and preservation infrastructure as may be decided by Inter Ministerial Approval Committee (IMAC)

(v) Toilets, Septic tank, drainage, etc.

Ineligible Components

The following items will be considered as non-technical civil works and will be considered ineligible for calculation of grant for the project (The list is only indicative and not exhaustive): -

(a) Compound Wall

(b) Approach Road/Internal Roads

(c) Cost of Land and site development

(d) Administrative Office Building

(e) Canteen

(f) Labour Rest Room and quarters for workers

(g) Security/ Guard Room or enclosure

(h) Consultancy fee, taxes, etc.

(i) Other Non-technical civil works not related to cold chain or storage infrastructure

Financial assistance (grant-in-aid) under the scheme is limited to a maximum of Rs 10 crore per project in relation to technical civil works and eligible plant & machinery subject to the following:

• For storage infrastructure including Pack House and Pre cooling unit, ripening chamber and transport infrastructure, grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, ITDP Areas & Islands, of the total cost of plant & machinery and technical civil works will be provided.
• For value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing, grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands, will be provided.
• For irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands.

Release of Grant

The grant-in-aid under the scheme is released in three instalments of 25%, 40% and 35% as per following schedule:

• 1st instalment of 25% of the total grant under the scheme is released after ensuring that 25% of the promoter’s contribution and 25% of the term loan has been spent on the project;
• 2nd instalment of another 40% of the total grant is released after ensuring that utilization of first instalment of grant, 65% of promoter’s contribution & 65% of term loan;
• 3rd and final instalment of remaining 35% of the grant assistance is released after ensuring utilization of the second instalment and 100% of promoter’s contribution and 100% of term loan.

Integrated cold chain and value addition infrastructure projects can be set up by Partnership/ Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. with business interest in cold chain solutions and also by those who manage supply chain.

The proposals have to meet the following basic eligibility criteria under the scheme:

(a) The net worth of the applicant should be at least 1.5 times of the grant applied for.

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