Business Opportunities in Agriculture: 150 Field Interviews (Book)

The Cold Store & Chain Dilemma

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praveshk

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The Cold Storage industry in India is expanding thanks to the efforts of GOI and several State governments.

The problem we face is to choose between three possible options:

1.Establish Cold Storage Unit (~5000MT) and Claim Subsidy under NHB.

2.Establish Cold Storage Unit (~5000MT) and Claim Subsidy under DIC (Govt. of Chhattisgarh).

3.Establish a Cold Chain Infrastructure (~5000MT +veTemp. Cold Store ~2000MT -veTemp. Cold Store along with IFQ (Individually Quick Frozen Line) and other infrastuctures.) and Claim Subsidy under MOFPI.

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Problem 1. Capital Subsidy under NHB(40%, max 1.2 Crores) is greater than in case of DIC(30%, max 30 Lakhs), but the specifications laid down to avail the subsidy are also greater, which indeed increases the project cost compared to DIC.

Problem 2. Option 3 gives the highest capital subsidy(50%, max. 10crores) but also has a higher project cost, and the financial feasibility of a sophisticated Cold Chain Infrastructure in a State like Chhattisgarh is Questionable.

Please Discuss these problems and give your Views.

Regards
Pravesh Kothari
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

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