Subsidy options for cold-chain Infrastructure April 2013

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1 Subsidy options for cold-chain Infrastructure April 2013

2 Set-up of New Infrastructure Static and Mobile Modernisation of Infrastructure Static (storage pre-coolers, etc) Expansion of Infrastructure Static (storage pre-coolers, etc) Marketing Infrastructure Terminal Markets Wholesale Markets Rural / Direct Markets Retail Outlets Vending Platforms Normative costs as per operating guidelines of each scheme / dept and Standards published in (2010).

3 Assistance Name / Description Item or Infrastructure Component Limiting Normative Cost or Project Parameter Any other descriptions

4 Subsidy 50% of capital cost Pack house/ On farm collection & storage unit Evaporative / low energy cool chamber Pusa Zero energy cool chamber Rs. 3 lakh per unit; size of 9m x 6m Rs. 4 lakh per unit of 8 MT Rs per unit; size 100 kg INTEGRATED POST HARVEST MANAGEMENT

5 Subsidy 40% of project cost (general areas); 55% in Hilly and scheduled areas Cold Storage (New Construction / Expansion) CA/MA Storage Cold Storage (Modernisation/Upgradation) Rs.6000/MT for max capacity 5000MT Rs.32000/MT for max capacity 5000MT Rs.1000/MT for thermal insulation Rs.2000/MT for refrigeration, technical equipment, electronics Credit linked back-ended subsidy and only for those units which adopt energy efficient technologies and the Technical standards, parameters and protocol issued by the Department. INTEGRATED POST HARVEST MANAGEMENT

6 Subsidy 40% of project cost (general areas); 55% in Hilly and scheduled areas Reefer Vans / Containers Primary/Minimal Processing units Ripening Chambers Rs.24 lakh/unit Rs.24 lakh/unit Rs.1 lakh/mt for max permissible cost of 300 lakh Credit linked back-ended subsidy and and only for those units which adopt energy efficient technologies and the Technical standards, parameters and protocol issued by the Department. INTEGRATED POST HARVEST MANAGEMENT

7 Subsidy 40% of project cost (general areas); 55% in Hilly and scheduled areas for individual entrepreneurs Pre-cooling Unit Rs. 15 Lakh for 6MT capacity Subsidy is back-ended and credit linked. INTEGRATED POST HARVEST MANAGEMENT

8 Subsidy 40% of capital cost (general areas); 55% in Hilly and scheduled areas for individual entrepreneurs Rural Markets, Apni Mandi, Direct Markets Retail Markets /outlets (environmentally controlled) Collection, sorting /grading units Rs.20 lakh per unit Rs.10 lakh per unit Rs.15 lakh per unit Credit linked back-ended subsidy. MARKETING INFRASTRUCTURE FOR HORTICULTURAL PRODUCE

9 Subsidy 25% of capital cost (general areas); 33.3% in Hilly and scheduled areas for individual entrepreneurs Wholesale Markets Rs.100 crore per project Credit linked back-ended subsidy. MARKETING INFRASTRUCTURE FOR HORTICULTURAL PRODUCE

10 Subsidy 25%-40% under PPP mode Terminal Markets (hub & spoke model/ppp with collection centres mandatory) Rs.150 crore per project Subsidy is capped at Rs. 50 crore and PPP mode is through competitive bidding. MARKETING INFRASTRUCTURE FOR HORTICULTURAL PRODUCE

11 Subsidy 50% of total cost Vending cart/ platform Static or Mobile with cool chamber Rs per unit MARKETING INFRASTRUCTURE FOR HORTICULTURAL PRODUCE

12 Project Cost Cr Capacity '000 MT Number (RH) Subsidy Cr (RH) Total Projects cleared : 675 units Total Subsidy Assist: Rs crores Total Project Cost: Rs crores Total Capacity created: million MT New norms and Standards applied from April 2010

13 Cold Storage (new set-up) Multi-Chamber Chilled range (>0 C) Multi-Chamber and Multiproduct Full range (-18 C to >0 C) Multi-Chamber, Multi product & pack-house with pre-cooling Full range (-18 C to >0 C) Rs.6000/MT Rs.7000/MT Rs.8000/MT Credit linked back-ended 40% of capital cost of project in general areas and 55% in case of Hilly & Scheduled Areas for a maximum storage capacity of 5000 MT per project COLD STORAGES OF HORTICULTURE PRODUCE

14 Sp Cold Storage C. A. / Other (new set-up) CA Cold Storage only Cold Storage with added components or different combinations of recommended components Rs.32000/MT Cost norm by committee Credit linked back-ended 40% of capital cost of project in general areas and 55% in case of Hilly & Scheduled Areas for a maximum storage capacity of 5000 MT per project COLD STORAGES OF HORTICULTURE PRODUCE

15 Cold Storage (modernisation) Upgrade Thermal insulation and/or Upgrade refrigeration, air-flow, electrics, safety & handling devices Rs.1000/MT Rs.2000/MT Credit linked back-ended 40% of capital cost of project in general areas and 55% in case of Hilly & Scheduled Areas for a maximum storage capacity of 5000 MT per project COLD STORAGES OF HORTICULTURE PRODUCE

16 PHM or Primary processing related & linked to on farm projects Pre-cooling units, Cold stores, Reefer Vans, Containers, Specialised Transport vehicle, Retail outlets, Ripening /curing chamber, Irradiation/VHT Max Rs. 50 lakhs (general area) Max Rs. 60 lakhs (Hilly & Scheduled areas) Credit linked back-ended 40% of project cost limited to 50 lakhs in general areas and 55% of project cost limited to 60 lakhs in Hilly & Scheduled Areas POST HARVEST MANAGEMENT OF HORTICULTURE CROPS

17 Infrastructure Development Sheds for mechanised sorting, grading, washing, etc Pre-cooling with handling system and cold storage Preshipment treatment (fumigate, x-ray, hot water dip, etc) Integrated facility with two of above 25% of cost max Rs.10 lakhs 25% of cost max Rs.10 lakhs 25% of cost max Rs.10 lakhs 25% of cost max Rs.25 lakhs Specialised Cold storages (high humidity, deep freezers, CA, MA Specialised Transport 25% of cost max Rs.10 lakhs 25% of cost, max Rs.2.5 lakh Sheds for intermediate sorting, grading, washing, etc 25% of cost max Rs.5 lakhs INFRASTRUCTURE DEVELOPMENT

18 Scheme for setting up Mega Food Park. Cold-Chain, Value Addition & Preservation infrastructure (project basis) Establishment of new and Modernization of existing Abattoirs.

19 Grant-in-aid, maximum Rs. 10 crore. Cold Chain, Value Addition and Preservation infrastructure 50% of cost (general areas); 75% in NE and difficult areas Project components - any 2 of 3 options. Minimal processing facilities at farm level including CA/MA storage, normal storage, IQF. Mobile pre-cooling vans and reefer trucks. Multi-product Distribution hubs, CA/MA, cold storage, blast freezing etc. Stand-alone Project component - Irradiation facility.

20 In XI plan, 63 projects sanctioned for MoFPI assist. 45 pertain to Horticulture produce. 18 to non-horticulture produce. 4 are Irradiation projects. 18 projects have started commercial operations. Sanctioned cold-chain capacity 259,419 MT in storage (created 137,973 MT). 314 reefer vans (created 108 reefer carriers). From MoFPI presentation April 2013

21 NCDC HMNEH APEDA MoFPI NHB NHM Numbers Subsidy ( crore) Capacity (lakh MT) Between 2009 and , total lakh MT of capacity created as Cold Storages / CA / MA and reefer vehicle infrastructure.

22 MoFPI has covered various infrastructure components into one integrated scheme. Individual cost components are merged into total project cost. All the dept schemes attempt to promote similar infrastructure. NHB has separate cost norms for three types of cold storages. MA storage is not clarified in NHB cost norm. All cost norms tend to be related to capacity measured in metric tons. NHB and NHM assist promotes horticulture use but is also open to frozen storage applications in case of multi-chamber designs. Refrigerated transport is promoted by NHB and NHM only when linked to horticulture produce.

23 *All Schemes being revised for XII Plan period