Setting up a cold storage business requires substantial investment.
Carrying out a feasibility study for the cold storage with respect to your planned town would enable you to take the right decisions and ensure the success of your business.
NextWave has recently carried out a feasibility study for a client that has plans to set up a 5000 MT cold storage facility in Dhule, Maharashtra.
Key points covered as part of the Cold Storage project:
Cold Storage Subsidy in India for capacity up to 5000 MT
The National Horticulture Mission (NHM) is implementing the State Government scheme of subsidy for cold storage up to 5000 MT capacity
The following are the details:
Cost norm for the cold storage as per the Government is Rs 8000 per ton
Subsidy of 35% is available – Rs 2800 per ton>
The application needs to be made through mahadbt.com for Maharashtra
After selection, within 15 days have to give consent that you are ready to do it
Within 2 months, have to submit project note and loan details – whether there is in-principle approval or loan sanction letter
This is followed by the pre-visit (spot visit)
Then will get an in-principle approval
Post this one gets 3 months to submit detailed project report, quotation and bank sanction letter
After this you will get administrative sanction
Then you get 12 months for construction
Disbursal of subsidy is after the Cold Storage is active
Cold Storage Subsidy in India for capacity above 5000 MT
The National Horticulture Board (NHB) is implementing the Central Government scheme of subsidy for cold storage above 5000 MT capacity
The following are the details:
Cost norm for the cold storage as per the Government is Rs 7600 per ton
Subsidy of 35% is available – Rs 2660 per ton
The application needs to be made through www.nhb.gov.in.
Post the application process, there is pre-inspection – project site visit.
The main point in the inspection is to check if the project has started or not. There should be no construction before approval
Post the site visit would get the in principle approval
Loan needs to be sanctioned within 6 months (3 months extension also if required)
Bank will do title search and provide appraisal note. The client will have to submit the title search, appraisal not and sanction through the bank to NHB
NHB will then issue grant clearance. After taking the loan have to execute the project.
Project should be completed within a period of 18 months.
After project is complete, can claim the subsidy
To claim the subsidy through the bank there would be a scrutiny in the form of joint inspection. The inspection team consists of NHB official, Bank Manager, Cold Storage expert (on NHB panel), Agri officer and applicant.
On approval of the report the subsidy is released within one month
Products kept in the Cold Storage with their temperature requirements
Anaaj, Pulses, Gud, Mirchi, Dry Fruits, Spices – 5 to 8°C
Dairy Products such as milk, curd, cheese, paneer - 0 to 5°C
Processed Foods such as Fruit Juices, Pulp, Concentrate – 1 to 3°C
Pharma Products – 2 to 8°C
Cut Flowers – 0 to 2°C
Meat, Poultry, Seafood, Frozen Products, Ice Cream – 0 to -20°C