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Integrated Cold Chain & Value Addition Infrastructure

Transforming India's food processing sector through modern infrastructure and reducing post-harvest losses

About The Scheme

The Integrated Cold Chain & Value Addition Infrastructure scheme aims to provide financial assistance to establish integrated cold chain projects to reduce post-harvest losses and add value to agricultural produce.

Scheme Period

2021-22 to 2025-26 (5 Years)

Subsidy Rate

35% (General) and 50% (NER/SC/ST/ITDP Areas) with a cap of ₹10 Crore

Project Components

Farm Level Infrastructure, Processing Centre, Distribution Hub, and Refrigerated Transport

Key Objectives

  • Reduce post-harvest losses of horticulture and non-horticulture produce
  • Provide integrated cold chain facilities from farm gate to consumer
  • Create value addition infrastructure at farm level
  • Enhance farmers' income through better utilization and price realization
  • Create direct and indirect employment opportunities in rural areas

Scheme Highlights

Total Budget Allocation

₹180 Crore for 30 ICC units over 5 years

Disbursement Pattern

3 Equal Instalments (1/3rd of Grants-in-Aid each)

Project Completion Timeline

General Areas: 30 months | Difficult Areas: 36 months

Minimum Evaluation Score Required

60 marks for General & 45 Marks for NER/SC/ST/ITDP

Scheme Details

Comprehensive information about the Integrated Cold Chain & Value Addition Infrastructure scheme to help you understand eligibility, components, and application process.

EoI – Deadline for filing Initial (First) Application

Sl No Particulars Remarks
01 Scheme Name Integrated Cold Chain & Value Addition Infrastructure (ICC)
02 Who are Eligible Interested Promoters / Investors willing to set-up Infrastructure Projects in Food Processing Sector / Segment.
03 When to Apply From 10:00 AM of 09-10-2023 to 05:00 PM of 15-12-2023 (68 Days)
04 Last Date to Apply (Cut-off Date) On or before 05:00 PM on 15-12-2023
05 Govt. Fee (Non-Refundable) General Category - ₹ 20,000/-
06 Mode of Govt Fee A Demand Draft (DD) to be submitted in favour of "Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi".
07 Mandatory Condition of submission of original DD (Cut-off Date) to Ministry It should reach Ministry not later than 7 Days after Last Date of Submission of Application – 15-12-2023.

Central Food Ministry (MoFPI) - ICC - Unit Caps / Budgeting

Sl No Particulars Inputs
01 Scheme Announced on (Revised Guidelines) 08-06-2022
02 Scheme Period 2021-22 to 2025-26 (5 Years)
03 Cut-off Date - Application Submission 09-10-2023 to 15-12-2023 (68 Days)
04 Major Criteria's No Civil Work, No Machinery Purchase, No Advances to Suppliers / Contractors before Ministry Approval.
05 Minimum Approval Time required by Ministry to Sanction Project 3 Months 15 Days
06 No of Applications / Unit Cap - Entire Policy Period (2021-22 to 2025-26) 30 ICC's with a Budget of ₹ 180 Crore for 5 years
07 Unit allocations per Year 6 Units for 2023-24
Note - There are 50-50 chances for consideration of additional Units / Proposals

Snapshot (Guidelines)

Sl No Particulars Inputs
01 Scheme Effective Date 08-06-2022
02 Project Location Any Location in India.
03 Subsidy Rate 35% (Gen) and 50% (NER / SC / ST / ITDP Areas) on Eligible Project Cost (Technical Civil Work + Eligible P&M excluding GST) with a cap of ₹ 10 Cr, whichever is lower.
04 Instalments 3 Equal Instalments (1/3rd of Grants-in Aid each)
05 Submission of 1st Instalment Documents - Cut-off Date & Stage Submit documents after confirming expenditure of 1/3rd of Eligible Project Cost, but within 8 months (Gen) / 10 months (SC / ST) from the date of "Ministry Approval".
06 1st Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 1st Installment Documents.
07 Release of 1st Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 1st Instalment will be released in 1 month (approx.), subject to the availability of funds.
08 Submission of 2nd Instalment Documents - Cut-off Date & Stage Submit documents after spending expenditure to the extent of 2/3rd (67%) of "Eligible Project Cost", 50% of TL & item-wise progress on approved components, but within 16 months (Gen) / 20 months (SC / ST) from the date of "Ministry Approval".
09 2nd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 2nd Instalment Documents.
10 Release of 2nd Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 2nd Instalment will be released in 1 month (approx.), subject to the availability of funds.
11 Submission of 3rd Instalment Documents - Cut-off Date & Stage Submit documents after 100% utilization of "Promoter Contribution (Equity)" & "Term Loan (TL)", but within 24 months (Gen) / 30 months (SC / ST) from the date of "Ministry Approval".
12 3rd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 3rd Instalment Documents.
13 Release of 3rd Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 3rd Instalment will be released in 1 month (approx.), subject to the availability of funds.
14 Subsidy Fund Utilization Subsidy will be kept in Grant-In-Aid Account and can be utilized for payments to "Vendors / Contractors" related to Project while its implementation.

Eligible Criteria's

Sl No Particulars Inputs
01 Land Should be in the name of Applicant. If "Lease Land", then15 years "Lease Period" duly registered is required.
02 Term Loan (TL) TL Date should be after Expression of Interest (EoI) Date. Minimum TL Value should be 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
03 Equity (Own Contribution) At least 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
04 Net worth (Combined) Should be 1.5 times of Grant-in-Aid for General (or) 10% of Grant-in-Aid for SC / ST (or) at least equal to Subsidy Amount for NER.
05 Eligible Project Cost Eligible Project Cost (Technical Civil + Machinery Cost excluding GST Value) as per Annexure-I.
06 Restrictions One application from an entity will be considered. An entity will include all Members / Relatives of the Promoter.
07 Investment Made prior to Ministry Approval Will not be considered as "Eligible Project Cost" to calculate Subsidy Amount.
08 Refundable Bank Guarantee (BG) 5% BG on "Eligible Subsidy Amount" should execute on receipt of Ministry Approval Letter, but within 30 days from the date of Ministry Approval. BG will be released on successful implementation of Project, but after receipt of 3rd Instalment of Subsidy Amount.
09 Stage of TL Disbursement After getting Ministry Approval, Bank can disburse TL Amount. Thereafter only Project Civil Work, Purchase of Machinery and Advance to Vendors & Contractors can be started / made.
10 Minimum 3 Bank Accounts 1 Current Account, 1 Term Loan Account & 1 Subsidy Account to be maintained by the Applicant.
11 Evaluation Marks As per the "Ministry Evaluation Chart," a minimum of 60 marks for General & 45 Marks for NER / SC / ST / ITDP is required to secure / achieve to make Project Eligible.
12 Project Completion General Areas - Within 30 months (Original 24 Months + 6 Months Extension). Difficult Areas (NER / SC / ST) - Within 36 months (Original 30 Months + 6 Months Extension) from the date of Ministry Approval including an extended period.
13 Mandatory Machinery Mfg. Details on each Machine Supplier is required to affix or rivet Manufacturing Plate on each Machine duly mentioning Unique Machine No, Month & Year of Manufacture.

List of Eligible / Ineligible Components for Calculation of Subsidy

Major Heads of Cold Chain Components

Sl No Particulars
01 Farm Level Infrastructure (FLI), which may include a Processing Centre, situated in the catchment area of the targeted produce. Location of FLI must mandatorily be indicated in the DPR as well as Bank Appraisal Note.
02 Processing Centre (Mandatory Component) - Indicative List as per Annexure-I
03 Distribution Hub - This shall have a modern multi-product, multi-temperature cold storage. It may also include one or more of the facilities mentioned in Annexure-I below depending upon the business plan of the project.
04 Refrigerated Vans / Refrigerated Trucks / Insulated Vans / Mobile Insulated Tankers.
04 Irradiation Facility - This may be a standalone component. Irradiation Facility may also include Cold Storage, Grading & Sorting Facilities, Reefer Vans for storage and transportation of raw material and finished products for efficient utilization of the facility. For the Irradiation Projects, Fruit & Vegetable Sector would also be an eligible Sector.

Annexure-I: Eligible Components

Sl No Eligible Components
01 Mechanized Sorting & Grading Line / Packing Line / Staging Cold Rooms.
02 Cold Storage Units (Associated with value addition)
03 Controlled Atmosphere (CA) Storage (Associated with value addition)
04 Frozen Storage / Deep Freezers (Associated with value addition)
05 IQF Line, Tunnel / Spiral / Blast / Plate Freezer, Vacuum Freeze Drying
06 Milk Chilling / Bulk Milk Cooling / Automatic Milk Collection Unit / Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing.
Note : Maximum 10 Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit can be assisted per project.
07 Poultry / Meat / Marine / Fishery Processing Unit
08 Packaging Line for Chilled / Frozen / Temperature-Controlled Products
09 Food Irradiation Unit
10 Refrigerated / Insulated Transport
11 Pre-Cooling Units / Mobile Pre-Coolers
12 Retail Refrigerated Carts, Temperature Controlled Solar Powered Retail Carts.
Note : Maximum 5 such Carts can be considered per project
13 Reefer Boats.
Note : Maximum 5 such Boats can be considered per project
14 Refrigerated Containers including Multi-Modal Container Units
15 Renewable / Alternate Energy Technologies (Solar, Bio-Mass, Wind, etc.) for the project.
Note : Maximum permissible cost is ₹ 35 lakh per project.
16 Accessories / Support Infrastructure / Utilities such as Fixed Racking System in Cold / CA Storage, Forklifts, Reach Trucks, Insulated Fish Boxes, Dock Levellers, Mezzanine Flooring, ETP, Boiler, CIP Unit, Slicer / Dicer, Sorting / Grading Line, etc.
Note : CA Storage should be located near production areas. Otherwise, detailed justification to be given in the DPR.
17 In-house product Testing Laboratory
18 Any other Modern Technology for Temperature-Controlled Storage, Processing, Value Addition & Preservation Infrastructure.
19 Toilets, Septic Tank, Drainage & such other facilities.

Annexure-I: Ineligible Components

Sl No Ineligible Components
01 Compound Wall
02 Approach Road / Internal Roads
03 Cost of Land & Site Development
04 Administrative Office Building
05 Canteen
06 Labour Rest Room & Quarters for workers
07 Security / Guard Room or Enclosure
08 Non-Technical Civil Works not related to the components of the scheme
09 Margin Money, Working Capital & Contingencies
10 Fuel, Consumables, Spares & Stores
11 Transport Vehicles other than Controlled Temperature Vehicles
12 Pre-operative expenses
13 Service Charges, Carriage & Freight Charges or other such Charges / Fees
14 Expenditure on Painting of Machinery
15 AC Ducting, Furniture, Computers & Allied Office Items
16 Closed Circuit TV Camera & Security System related Equipment
17 Consultancy Fee, Taxes, etc. on Plant & Machinery
18 Stationery Items
19 Plant & Machinery not directly related to components of the scheme
20 Fly Catchers, Hand Washer, Laundry

Central Food Ministry (MoFPI) - Application Process Timelines

Sl No Head Timelines (TAT)
01 Application - Starting Date 09-10-2023
02 Application - Submission Last Date 15-12-2023
03 Total days available for submission of Application 68 Days
04 Time required for considering the case by Technical Scrutiny Committee (TSC) by Ministry. 30 Days
05 Time required for further consideration of proposal for IMAC once TSC approved. 15 Days
06 Time required to get Approval / Sanction form Ministry after IMAC Decision. 15 Days
07 Total time required to get Approval 3 Months 15 Days

Application Process Flow

1
Application Submission

Submit application between 09-10-2023 to 15-12-2023

2
Technical Scrutiny Committee (TSC) Review

30 days for technical evaluation

3
IMAC Consideration

15 days for Inter-Ministerial Approval Committee review

4
Final Approval

15 days for Ministry to issue final approval

Check List (ICC) - Initial Application

Sl No Particulars
01
Detailed Project Report (DPR) as per Appendix-2
  • Indicating Financial and Technical profile of the Entity
  • Domain Expertise available with the Entity
  • Raw material availability in the area where project is proposed to be set up
  • Arrangements for procurement of Raw material
  • Marketing Strategy of proposed products
  • Process Flow Diagram of proposed products with production capacity per day
  • Technology proposed for various activities in process line
  • Financial estimates with Key Financial Parameters
  • Profit and Loss Statement
  • Estimated Employment Generation from the Project (Direct as well as Indirect)
  • Number of Farmers estimated to be benefited etc
02 A detailed Appraisal Note, specific to the scheme, from a Scheduled Commercial Bank
03 Bio-data / Background / Experience of the entity relevant to the scheme.
04 In-Principle / Final Term Loan sanction from a Bank
05 Certificate of Incorporation / Registration, Memorandum & Article of Association, Bye-laws, Partnership Deed
06 Company PAN Card, TAN Card
07 SC / ST Caste Certificate (If applicable)
08 Registered Sale Deed / Lease deed (Lease Period 15 years) - English Version
09 Quotations (which include ITC (HS) Code, Product Description, Quantity, Basic Cost, GST) from Original Equipment Manufacturer or its Authorised Dealer / Supplier
10 Net worth Certificate by CA (Appendix-1)
11 CA / Statutory Auditor Certificate (Appendix - 3)
12 Charter Engineer Certificate (Civil) (Appendix - 4)
13 Charter Engineer Certificate (Mechanical) (Appendix - 5)
14 Proof of submission of Fee (DD Date)

Important Notes:

  • All above documents must be submitted through online duly Self-attested.
  • Land in the name of Applicant. CLU Available.
  • Proposal should contain an index as first page & all pages of documents must be properly numbered

Impact of ICC

The Integrated Cold Chain scheme has significant positive impacts on farmers, consumers, and the overall food processing ecosystem.

Reduced Post-Harvest Losses

Modern cold chain infrastructure helps reduce post-harvest losses by up to 20-30%, ensuring better utilization of agricultural produce.

Increased Farmer Income

Farmers can realize 15-25% higher prices for their produce due to better quality maintenance and reduced distress sales.

Employment Generation

Each ICC project creates approximately 100-150 direct jobs and 300-400 indirect employment opportunities in rural areas.

Food Safety & Quality

Temperature-controlled infrastructure ensures better food safety, longer shelf life, and improved quality of perishable products reaching consumers.

Market Expansion

Cold chain infrastructure enables access to distant markets and export opportunities, expanding the reach of Indian agricultural products globally.

Frequently Asked Questions

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