Financial Assistance Available from Multiple Sources for Development of Cold Chains

For development of cold chain facilities in the country, Government is operating several Plan Schemes under which financial assistance is provided for setting up of cold storages / cold chain facilities. Ministry of Food Processing Industries (MFPI) has also a Plan Scheme for Cold Chain, Value Addition and Preservation Infrastructure during the 11th Plan to provide financial assistance to project proposals received from public / private organizations for cold chain infrastructure development. The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs.10.00 crore. The initiatives are aimed at filling the gaps in the supply chain, strengthening of cold chain infrastructure, establishing value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc.

Ministry of Agriculture and Cooperation as well as Ministry of Commerce and State Governments also provide financial assistance for cold storages under their respective schemes through their agencies like National Horticulture Board (NHB), Agricultural and Processing Food Products Development Authority (APEDA), National Cooperative Development Corporation (NCDC).

The scheme of the Food Processing Ministry is project oriented and not state/location specific. However, while selecting the cold chain projects, due consideration is given on volume of raw material available in that area. Under the scheme for Cold Chain, Value Addition and Preservation Infrastructure, MFPI has assisted 10 cold chain projects during last three years in the States viz. Maharashtra, Bihar, Tamil Nadu, Rajasthan, Karnataka, Uttarakhand, West Bengal, Andhra Pradesh, Gujarat and Haryana.

This information was given by the Minister of State for Food Processing Industries, Shri Harish Rawat in a written reply in the Rajya Sabha today.

MP:CP: financial (rajya) 11.3.2011