The Cold Chain Subsidy Loan Scheme refers to government-supported financial assistance mechanisms designed to promote cold chain and value-addition infrastructure across India. Its major component is the Scheme for Integrated Cold Chain and Value Addition Infrastructure under the Ministry of Food Processing Industries (MoFPI) — implemented as part of Pradhan Mantri Kisan Sampada Yojana (PMKSY).
The scheme provides grant-in-aid + loan support to businesses and entrepreneurs setting up integrated cold chain projects to reduce post-harvest losses of perishable products (fruits, vegetables, dairy, meat, and fish), improve market access, and ensure better prices for farmers.
Unlike pure loans, this scheme offers subsidy (grant) on project cost which reduces the burden of debt and enhances project viability.
| Feature | Details |
|---|---|
| Objective | Create seamless cold chain & preservation infrastructure from farm to consumer, reducing post-harvest losses. |
| Implementing Body | Ministry of Food Processing Industries (MoFPI), Govt. of India. |
| Scheme Duration | 2021–22 to 2025–26 (currently active period). |
| Grant/Subsidy | 35% of eligible project cost (General Areas). 50% for difficult areas / SC/ST / FPOs / SHGs. Capped at ?10 crore per project. |
| Financing Pattern | Subsidy + promoter’s equity + term loan from bank/financial institution. |
| Eligible Components | Cold storage, pre-cooling units, processing centres (mandatory), distribution hubs, refrigerated transport, mobile insulated units, irradiation. |
| Subsidy Release | In three equal instalments after specified implementation milestones. |
| Application Portal | Online via SAMPADA portal of MoFPI. |
Who can apply:
? Individuals/Entrepreneurs with business interest in cold chain.
? Firms (Proprietorship, Partnership, LLP).
? Private Limited Companies/Corporations.
? Cooperatives, Farmer Producer Organisations (FPOs), FPCs & SHGs.
? NGOs, PSUs (Central/State) with relevant project plans.
Financial conditions:
? Net worth requirement: At least 1.5× the requested grant amount for general applicants; 1× for difficult areas / SC/ST / FPO / SHG projects.
? Promoter’s equity: Minimum 20% of total project cost (general); 10% (special categories).
? Term loan: Must obtain bank/financial institution term loan as per guidelines.
Other conditions:
? Project should be a new integrated cold chain project (no upgrades of existing facilities).
? Must follow project implementation norms and timelines.
Here’s a typical list of documents you will need to prepare and upload:
Detailed Project Report (DPR) with technical & financial details
Bank Term Loan Sanction Letter from scheduled bank
Certificate of Incorporation/Registration (for companies, firms, societies)
PAN & Aadhaar of promoters/applicants
Net worth certificate & audited financial statements (last 2 years)
Land documents: ownership/lease deed (usually 15+ years)
Quotations for plant & machinery and cost breakup
BOQ (Bill of Quantities) for equipment & civil work
Proof of business experience / technical expertise
Environmental/FSSAI approvals (if applicable)
Bank account details for subsidy release
Passport size photos & KYC documents
| Merits | Demerits |
|---|---|
| Significant subsidy support (35–50%) lowers project cost. | Complex documentation process with DPR and bank sanction requirements. |
| Encourages investment in cold chain infrastructure, boosting agri value chain. | Subsidy amount is back-ended (paid after milestones), increasing upfront financial burden. |
| Helps reduce post-harvest losses, increase farmers’ income. | Eligibility criteria like net worth requirements may be tough for small entrepreneurs. |
| Enables access to bank financing + govt support. | Time-taking approval & verification process (field checks may be done). |
| Promotes modern storage and value-addition facilities. | Strict conditions on project timelines and implementation. |
1? What is a cold chain subsidy loan scheme?
It is a government initiative that combines loans with grant-in-aid/subsidy to support setting up cold chain & preservation infrastructure for perishable goods.
2? Who can apply for this scheme?
Individuals, companies, partnerships, FPOs, cooperatives, NGOs, PSUs and SHGs involved in cold chain projects can apply.
3? How much subsidy is provided?
Up to 35% of eligible cost in general areas; 50% for difficult/SC/ST/FPOs/SHG category projects, capped at ?10 crore.
4? Do I need a bank loan to qualify?
Yes — a term loan sanction from a scheduled bank is required as part of means of finance.
5? What projects are eligible?
Integrated cold chain including cold storage, processing centre, refrigerated transport and distribution hubs.
6? Is there a minimum or maximum project cost limit?
There’s no strict minimum noted — but projects must be financially viable; the subsidy is capped at ?10 crore.
7? What is the application process?
Apply online via the SAMPADA portal during open calls for Expression of Interest (EOI) with DPR and documents.
8? When is subsidy released?
It is released in three instalments based on project milestones (expenditure & progress).
9? Can existing cold chain facilities get benefit?
Generally, the scheme focuses on new integrated projects, not upgrades of existing ones.
Does this scheme help farmers?
Yes — by reducing post-harvest losses and connecting farmers to markets with better storage & pricing.
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