The Indian government implements several schemes to promote cold storage and integrated cold‑chain infrastructure. These initiatives aim to minimize post-harvest losses, support farm-to-market logistics, and raise farmer incomes through modern storage solutions.
Under the Pradhan Mantri Kisan Sampada Yojana, financial assistance is offered for developing cold chain and food processing facilities.
Support covers pre-cooling, multi‑temperature cold storage, grading and packing, IQF, blast freezing, and reefer transport.
Grants at 35% of project cost in general areas and up to 50% in special regions (North‑East, hill/tribal areas).
For value‑addition and processing components, subsidy rates reach 50%/75%, capped at ₹10 crore per project.
Credit‑linked, back‑ended subsidies for capacities of 5,000 MT to 10,000 MT, including Controlled Atmosphere (CA) storage.
Subsidy rates: 35% in general areas; 50% (North‑East, hilly, Scheduled areas).
Units above 1,000 MT in North‑East region are eligible.
Offers capital subsidy for agro‑warehousing, including cold storage and silos (minimum 5,000 MT capacity).
Subsidy ranges from 15% to 33%, depending on borrower category and project location.
Income Tax deduction under Section 80‑IB for profits from cold chain projects.
Capital Investment deduction (Section 35‑AD) allowing 150% depreciation benefit.
Cold chain projects are eligible for external commercial borrowings.
Customs duty exemption on refrigeration equipment imports and refrigerated vehicles.
Individuals, farmer-producer organizations, cooperatives, companies, SHGs, NGOs, and PSUs.
Eligible for both standalone cold storage and integrated cold chain projects depending on scheme requirements.
Credit-linked subsidy: Beneficiaries take bank loans and claim subsidy after project completion.
Back-ended grants: For integrated infrastructure under PMKSY, applicants must comply with specified timelines and inspection criteria.
Projects above ₹5 crore or capacities up to 5,000 MT are reviewed by state-level executive committees; larger proposals pass through central empowered committees.
Assess project feasibility, required capacity, and applicable subsidy scheme.
DPR preparation, cost-benefit analysis, and loan structuring.
Assistance in securing Term Loan and submitting subsidy applications.
Compliance with scheme norms and document submission.
Coordination with technical appraisal agencies, inspection committees, and governmental bodies.
Subsidy claim tracking and liaison until fund disbursement.
Tax benefit advisory (Section 80‑IB / 35‑AD), customs exemption guidance, and external finance facilitation.
Support in combining state-level or industry-specific incentives (e.g. horticulture boards, FPO promotion schemes).
Reduces post-harvest losses significantly, ensuring better quality and shelf-life of perishable produce.
Enhances stakeholder income by enabling farmers and value-chain entrepreneurs to access modern storage infrastructure.
Supports supply chain resilience from farm to final consumer, especially for horticultural and processed agri-products.
Hyderabad
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