Assistance for building, expanding, modernising cold storages for horticulture produce

Credit-linked back-ended subsidy up to Rs 7.5 crore is available through NHB

The Indian government’s National Horticulture Board (NHB) is implementing a scheme ‘Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products’. Under the scheme, credit-linked projects relating to cold storages including controlled atmosphere (CA) and their modernization are eligible for assistance.

As per the scheme, credit linked back-ended subsidy at 35% of the capital cost of the project in general areas; and 50% in case of northeast, hilly states and scheduled areas for construction/expansion/modernization of cold storage and CA storage of capacity above 5,000 metric tonnes (MT) and up to 10,000 MT is available. In the case of the northeast region, the units with capacity above 1,000 MT are also eligible for assistance.

Maximum permissible subsidy is subject to original invoices, and in no case more than Rs 7.50 crore, whichever is lower. For add-on technology, subsidy shall be provided as credit-linked back-ended at 35% of the capital cost.

The scheme is demand/entrepreneur-driven. As per scheme guidelines, applicants have to make an online application to the NHB for In-Principle Approval (IPA).  After receipt of IPA, applicants are required to get the term loan sanctioned from a bank/financial institution.

Thereafter, NHB issues a Grant of Clearance to start the project.  Upon completion of the project using promoter’s equity and bank term loan, the subsidy claim is to be submitted to NHB.

After physical joint inspection of the project, subsidy claim is considered and approved by the Project Approval Committee of the NHB.  Thereafter, the NHB subsidy is released in the subsidy reserve fund account of the lending bank/financial institution.

Before submitting the application, applicants should carefully read and understand operational guidelines of the relevant scheme available on the NHB website and ensure that financial assistance sought is as per the notified scheme and they fulfil the eligibility criteria.



Those eligible for financial assistance for include association of growers, individuals, group of farmer growers/consumers, farmers producer organisations (FPOs,) partnership/proprietary firms, self-help groups (SHGs), NGOs, companies, corporations, cooperatives, cooperative marketing federations, agricultural produce marketing committees, marketing boards/committees, municipal corporations/committees, agro-industries corporations, state agricultural universities (SAUs) and other concerned research and development (R&D) organisations.

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