Cold storage subsidy, explained plainly.
MIDH, NHB, PMKSY and the Agriculture Infrastructure Fund — what each covers, what you actually receive, and the documentation that decides whether you get it.
The four routes, side by side
Figures as stated by the Ministry of Agriculture and Farmers Welfare. Always confirm the current year's guidelines with your State Horticulture Mission or the NHB regional office before you apply.
| Scheme | Capacity covered | Assistance | How it works |
|---|---|---|---|
| MIDH Mission for Integrated Development of Horticulture | Up to 5,000 MT | 35% of project cost in general areas; 50% in north-eastern and hilly states | Credit-linked, back-ended. Applied through your State Horticulture Mission. |
| NHB National Horticulture Board | 5,001 to 20,000 MT | 35% general; 50% north-eastern, hilly and scheduled areas | Credit-linked, back-ended. Applied to the NHB regional office with a bank appraisal. |
| PMKSY Ministry of Food Processing Industries | Integrated cold chain, storage and transport infrastructure | 35% general; 50% north-eastern, Himalayan, ITDP and island areas. Up to 50-75% for value addition. Grant ceiling Rs 10 crore per project | Competitive call, project-specific, for integrated cold chain projects. |
| AIF Agriculture Infrastructure Fund | Post-harvest infrastructure generally | 3% interest subvention; collateral-free loan cover up to Rs 2 crore; Rs 1 lakh crore fund | Not a subsidy but cheaper money. Usually stacks with MIDH or NHB. |
Eligible applicants include individuals, farmer groups, FPOs, self-help groups, co-operatives, APMCs and state agencies.
What "35% subsidy" really means for your cash flow
It does not mean you pay 65% of the project. It means you fund the whole project first — your own margin plus a term loan — build it, get it inspected, and then the subsidy is credited against the loan.
The sequence is always the same: your own contribution, a term loan for the balance, construction, commissioning, joint inspection — and only then the subsidy credited to the loan account, often six to twelve months after the store starts running.
Every scheme also applies its own cost norms and ceilings, so the admissible amount is usually less than the headline percentage applied to your full project cost. Treat the percentage as an upper bound, never as funding for the build.
Every promoter who has been disappointed by a subsidy was told the percentage and not the sequence.
What the technical file has to contain
- Design basis: commodity, incoming temperature, loading per day, cooling time, temperature and humidity to be held
- Capacity calculation traceable to the drawings, at the prescribed storage norm
- General arrangement drawings and chamber layout
- Detailed BOQ where every quantity traces to a dimension, with quotations for major equipment
- Heat-load calculation supporting the refrigeration selection
- Construction programme aligned to the disbursement schedule
- NHB / NCCD safety and compliance items priced in, not left out
That file is what we prepare for every project we build, because the bank's valuer is going to read it whether or not there is a subsidy involved.
Where applications fail
- Capacity in the report does not match the drawings
- BOQ quantities that cannot be traced to a dimension
- GST treated inconsistently between packages
- Construction started before sanction or inspection formalities
- Safety and compliance items left out of the BOQ
- No heat-load calculation attached
Common questions
How much subsidy can I get for a cold storage?
Under both MIDH and NHB the credit-linked back-ended subsidy is 35% of eligible project cost in general areas and 50% in north-eastern and hilly states. MIDH covers capacity up to 5,000 MT through your State Horticulture Mission; NHB covers 5,001 to 20,000 MT. Ministry of Food Processing schemes under PMKSY assist storage and transport infrastructure at the same 35% and 50%, with a grant ceiling of Rs 10 crore per project.
When is the subsidy actually paid?
After the project is completed and inspected. It is a back-ended, credit-linked subsidy: your bank releases the loan, you build, a joint inspection team verifies, and the subsidy is then credited to the loan account. Plan your cash flow as though the subsidy does not exist until the store is running.
Do I need a bank loan to get the subsidy?
For the credit-linked schemes, yes — the subsidy is routed through the term loan, which is why the bank appraisal and the technical documentation matter so much.
What usually goes wrong with applications?
Not eligibility — documentation. The commonest failures we see are a capacity calculation that does not match the drawings, a BOQ whose quantities cannot be traced to a dimension, missing statutory approvals, and starting construction before the sanction or inspection formalities are complete.
Can Coldcare prepare the project report?
We prepare the technical file — design basis, capacity calculation, drawings, detailed BOQ and the programme — which is what a DPR consultant and a bank valuer need. We do not sell project reports, and we will work alongside whichever consultant you appoint.
Scheme rates as stated in the Government of India Press Information Bureau release on cold storage schemes, 22 July 2025. Scheme guidelines change; confirm the current position before you apply.
Tell us what you want to store.
We come back with an indicative capacity, a cost range and the subsidy your project may qualify for. No obligation, no consultant's fee.
Tell us what you want to store.
We will come back with an indicative capacity, a cost range and what subsidy your project may qualify for. No obligation, and no consultant's fee.