Cold Storage

Credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and their modernization are eligible for assistance under this component.

Eligible Organizations:-

  • Proprietary/ Partnership Firms
  • Companies, Corporations, Cooperatives
  • Co-operative Marketing Federations
  • Association of Growers
  • group of farmer growers/consumers
  • Farmers Producer Organizations (FPOs,)
  • Self Help groups (SHGs), NGOs,
  • Agricultural Produce Marketing Committees
  • Marketing Boards/Committees
  • Municipal Corporations/ Committees
  • Agro Industries Corporations

Subsidy calculation


1.Capacity in tones


Cold Storage Type-1


Cold Storage Type-2


Calculation of Capacity

Allowed Per MT Cost



subsidy Per MT @ 35%


Max Amount (Rs in Lakh )


Allowed Per MT Cost subsidy Per MT @ 35% Max Amount (Rs in Lakh )


For calculation of capacity, 3.4 cubic meters (cum.) (120 cubic feet (cft.) of chamber volume shall be considered equivalent to 1 MT storage capacity

1.( L x W x H) /3.40 cubic meters.(cum)

2.(L x W x H)// /120 cubic meters (cft)

Up to 5000 MT (NHM) 8000 2800 140.00 10000 3500 175.00
5001-6500 MT 7600 2660 172.90 9500 3325 216.12
6501-8000 MT 7200 2520 201.60 9000 3150 252.00
8000-10000 MT 6800 2380 238.00 8500 2975 297.50
2 Cold Storage Units Type 2 with add on technology for controlled atmosphere Maximum subsidy @Rs.5 Crores, Additional Rs.10,000/MT for add on components of controlled atmosphere technology as per component wise cost
3 Technology induction and modernization of cold-chain  1.Maximum subsidy @Rs.2.50 Crores @ Rs.5000/MT, for capacity

between 5001 to 10000 MT.

Components of modernization includes

·         PLC equipment

·         Packaging lines

·         Dock levelers

·         Advanced graders

·         Alternate technologies, Stacking system

·         Modernization of insulation and refrigeration

The assistance will be given as subsidy @ 35% of the capital cost of project above 5000 MT up to 10000 MT.

When to apply

In Principle Approval (IPA)

In response to your application under IPA scheme 2019-20, National Horticulture Board (NHB) had issued Pre-IPA to your project. Now, NHB has decided to simplify the 2-stage process of “Pre- IPA and IPA” to a single-stage process in order to promote ‘ease of business’ while implementing the schemes of NHB. This decision will be made applicable with immediate effect i.e. for the applications received during the current financial year under the IPA scheme 2019-20


The validity of this IPA is up to 6 months from its date of  issue or up to 30.09.2020, whichever is earlier. The validity can be extended by 3 more  months by NHB based on justified reasons on case to case basis. However, IPA of 2019-20 Scheme will not be valid beyond 30.09.2020.

IPA Scheme Condition

1.The proposed activity shall be a completely new activity as proposed in the DPR and IPA  application and shall not be any pre-existing activity and or for any old component thereof.

2.No work of the project, except preliminary works viz. fencing/compound wall with gate,  land leveling and digging of pits in open cultivation projects, shall be started without obtaining final clearance of NHB for availing the term loan and starting of the project work. The preliminary works mentioned above can be taken up only. by using the applicant’s  margin money. Granting of permission to undertake such preliminary works by using  margin money does not automatically confer a right upon the applicant for claim/grant of  subsidy.

Time limit for Completion of project:

Time limit for completion of the project would be maximum of 18 months period from the date of disbursement of the 1st installment of term loan, which may be extended by a further period of 3 months, if reasons for delay are considered, justified by the financial institution concerned and agreed to by NHB.