Scheme for Integrated Cold Chain & Value Addition Infrastructure
Scheme for Integrated Cold Chain & Value Addition Infrastructure
The Ministry of Food Processing Industries on 8th 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.
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.
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
- For irradiation projects, the fruit & vegetable sector would also be an eligible sector
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 will have modern multi-product, multi, temperature cold storage.
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.
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.
- 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.
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).