The Ministry of Food Processing Industries (MOFPI) in India provides very good financial assistance for the setting up of a cold chain in India. This article briefly details the scheme available with MOFPI for setting up a cold chain in India.

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October 2014
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Subsidy in India for Setting Up Cold Chain
The Ministry of Food Processing Industries (MOFPI) in India provides very good financial assistance for the setting up of a cold chain in
India. This article briefly details the scheme available with MOFPI for setting up a cold chain in India.
What is a Cold Chain?
Cold chain consists of cold storage, cold
transport, value addition and preservation
infrastructure to provide an integrated
cold chain without any break from the farm
gate to the consumer. It covers pre-- cooling facilities at production
Who can setup a cold chain?
Individual or group of entrepreneurs who
have business interest in cold chain solutions can set up an integrated cold chain
and preservation infrastructure. It can also
be set up by corporates and industries
who manage cold chain supply chain enabling the linking of producers to the processors and market.
What are the criteria’s for obtaining financial assistance for cold chain?
A cold chain contains multiple facilities at
various centers as under. To avail financial assistance under the scheme, any two
of the following facility from the below will
have to be setup by the unit.
i) Production Facility: Minimal processing centre at the farm level and centres 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).
ii) Transport Facility: Transport level
consists of mobile pre-cooling vans and
reefer trucks required to transport goods
and products in a temperature controlled
atmosphere.
iii) Distribution Facility: Distribution
facility consists of 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.
What is the amount of financial assistance provided for setting up of cold
chain by MOFPI?
Ministry of Food Processing Industries
(MOFPI) provides financial assistance
(grant-in-aid) to the tune of 50% the total
cost of plant and machinery and technical
civil works in General areas and 75% for NE
region including Sikkim and difficult areas
(J&K, Himachal Pradesh and Uttarakhand)
subject to a maximum of Rs.10 crore.
How is the financial assistance provided
during the setting up of the unit?
The financial assistance will be released in
3 installments after the investors / promoters have paid or invested their share of the
capital fully as per the following schedule:
1st Installment: The 1st installment of
25% of the total grant under the scheme
will be released after ensuring that 25%
of the promoter’s contribution and 25%
of the term loan has been spent on the
project.
2nd Installment: The 2nd installment of
another 50% of the total grant under the
scheme will be released after ensuring that
utilization of first installment of grant and
75% of promoter’s contribution & 75% of
term loan has been spent on project. Utilization certificate for the first installment
has to be submitted by the promoter at
the time of making claim for the second
installment.
3rd Installment: Distribution facility consists of 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.
How should the application for financial
assistance be made?
The application for financial assistance for
setting up of a cold chain should be made
in the prescribed format to Ministry of
Food Processing in India in the prescribe
format. Alternatively, you can talk to one
of IndiaFilings Business Expert to help you
apply for the scheme and obtain approval.