Scheme for Integrated Cold Chain & Value Addition Infrastructure

The Ministry of Food Processing Industries on 8^th June 2022 has published the revised guidelines of the scheme for Integrated Cold Chain & Value Addition Infrastructure. The revised guidelines will be applicable to new applications received against Expression of Interest (EOI). The present article briefs the scheme in detail. For more details on Subsidy in India for setting up Cold Chain, click here

The objective of the Scheme

The objective of the Scheme for Integrated Cold Chain & Value Addition Infrastructure is to provide integrated cold chain, preservation, and value addition infrastructure facilities without any break, from the farm gate to the consumer. To reduce post-harvest losses of non-horticulture produce, dairy, meat, poultry, and marine/fish (except shrimp).

The benefit of the Scheme for Integrated Cold Chain & Value Addition Infrastructure

Scheme for Integrated Cold Chain & Value Addition Infrastructure will enable linking producers to food processors and market through a well-equipped supply chain and cold chain, thereby ensuring remunerative prices to farmers and year-round availability of food products to consumers.

Eligible Entities

Integrated cold chain and value addition infrastructure projects can be set up by Individuals with business interest in cold chain solutions and managing the supply chain. The following type of Entity/organization can also apply to the scheme:

Farmers Producer Organisations
Farmer Producer Company (FPC)
Non-government organization (NGO)
Public sector Undertakings
Firms
Companies
For irradiation projects, the fruit & vegetable sector would also be an eligible sector

Eligibility Criteria

The combined net worth of the applicant should be at least 1.5 times the grants-in-aid sought for from the Ministry of Food Processing Industries(MoFPI) in respect of General Areas and at least equal to grants-in-aid sought for in respect of difficult areas or proposals from SC/ST or Farmer Producer Organisations or Self-Help Groups. In the case of a proposal from the SC/ST category, the sum of the net worth of SC/ST members shall not be less than 10% of the combined net worth of the entity.

Components of the Scheme

The scheme for Integrated Cold Chain & Value Addition Infrastructure will have the following components:

Farm Level Infrastructure
Processing Centre
Distribution Hub
Irradiation Facility
Refrigerated vans/refrigerated trucks /insulated vans/mobile isolated tankers.

Farm Level Infrastructure

Farm Level Infrastructure may include a processing center, situated in the catchment area of targeted produce. Location of FLI must mandatorily be indicated in the DPR as well as bank appraisal note:

Distribution Hub

Distribution Hub will have modern multi-product, multi, temperature cold storage.

Irradiation Facility

Irradiation Facilities may include cold storage, grading and sorting facilities, reefer vans for storage and transportation of raw material and finished products for efficient utilization of the facility

Eligible Facilities for Calculation of grant-in-aid

Eligible Facilities for Calculation of grant-in-aid under the Scheme for Integrated Cold Chain & Value Addition Infrastructure are as follows:

Assistance under the scheme can be availed for the creation of the following facilities
Mechanized sorting & grading line /packaging line/staging cold rooms
Cold storage units
Controlled Atmosphere storage
Frozen storage /Deep freezers
IQF line, Tunnel, Spiral, Blast, Plate freezer, vacuum freeze-drying
Milk chilling, Bulk Milk Cooling, Automatic milk collection unit, Milk processing unit
Poultry/meat /marine/Fishery processing unit
Packaging line for chilled /frozen/temperature-controlled products
Food irradiation unit
Refrigerated /insulated transport
Pre-cooling units
Retail refrigerated carts, temperature-controlled solar powdered retail carts
Reefer boats
Refrigerated containers including multi-modal container units
Renewal /alternate energy technologies for the project
In-house product testing laboratory
Any other modern technology for temperature-controlled storage, processing, value addition, and preservation infrastructure.

Pattern of Assistance

Grants-in-aid will be at 35% of eligible project cost for projects in General Areas and 50% of eligible project cost for projects in difficult areas as well as for projects of SC/ST, FPOs, and SGHs. The grants in aid will be released in three equal installments.

Application Fee

The entities applying for financial assistance are required to submit a non-refundable fee of Rs.20, 000 through a demand draft, provided that the non-refundable fee shall be Rs, 15,000 for applications from SC/ST.

Documents Required

Detailed Project Report (DPR) indicating the financial profile of the entity, domain expertise available with the entity, raw material availability,
CA/statutory auditor certificate prepared by the stator provision read with condition
CA/statutory auditor certificate
In-principle /final term loan sanction from a Bank
A detailed appraisal note, specific to the scheme from a scheduled commercial bank
Certificate of incorporation/registration, Memorandum, and Article of Association, Bye-laws of the society / co-operative / Self Help Group, Registered partnership deed, PAN, TAN
Bio-data /background/experience of the entity relevant to the scheme
Annual Reports, and audited financial statements of accounts for the last two years
Details of land along with relevant documents
Proof of submission of requisite fee
Quotations from original Equipment Manufacturer in respect of Plant & Machinery and equipment for the proposed project
Correspondences for possible forward or backward linkages.

Application Procedure

The application for the Scheme for Integrated Cold Chain & Value Addition Infrastructure shall be submitted online on the SAMPADA portal of the MoFPI.

The proposal will be invited by MoFPI through the Expression of Interest that will be valid for 45 days.
The ministry will constitute a Technical Committee and Project Approval Committee for scrutiny of proposals received against EOI.
The proposal found prima facie eligible will be evaluated inter-alia based on technical parameters as well as assessment criteria.
A proposal will have to obtain a minimum of 60 marks to become eligible for consideration of grants-in-aid

Note: The maximum mark will be 45 for an applicant belonging to SC/ST.

The ministry will issue an approval letter for successful application giving, inter-alia details of the project, total project cost, eligible project cost, approved grants-in-aid, completion schedule of the approved project, and other relevant details.
Once the acceptance letter and affidavit are provided, the applicant will be called Project Implementing Agency as (PIA).

Click here to get the official document of the Ministry of Food Processing Industries (MOFPI).