Government of Odisha
Department of Agriculture & Farmers' Empowerment
NOTIFICATION
Bhubaneswar, dated the 304-7 j
No. DHO-NHM-PLAN-0001-2025 /A&FE
The State Cabinet in their 14th meeting held on 22.01.2025 have approved the proposal for
provision of funds for "Financial Assistance to Cold Storages" scheme.
1. Introduction
The scheme "Financial Assistance to Cold Storages" is introduced with an
objective to strengthen cold storage facilities and infrastructure, to establish at least one
cold storage in each of the 58 sub-divisions of the state to encourage private entrepreneurs
to set up cold-storages in hitherto uncovered and economically feasible locations, to
enhance income of farmers by providing better market opportunities, value-addition and
processing of agriculture, horticulture and allied sector commodities, to address post-
harvest losses, and to prevent distress sale of harvested crops.
2. Justification
Quantitative and qualitative loss after harvest of fruits, and vegetables substantially
affects income of growers. It is evident that poor infrastructure and knowledge gap are major
determinants for post-harvest losses. Under such situation, post-harvest management is an
effective intervention to minimise the loss and to increase per capita availability of fruits and
vegetables. Such facilities at the sub-division level would benefit the farmers by reducing their
post-harvest losses and increase the value of agricultural produce.
3. Patterns of Assistance
i. The patterns of assistance for the new cold storages and the existing cold storages
(sick/ stressed/defunct) on different components shall be considered as detailed
below:
Patterns of New Cold Storages Existing Cold Storages
Assistance
Capital i.60% of fixed capital expenditure Not Applicable
Investment limited to Rs.6.50 Crore, whichever is
Subsidy lower for ST/ SC/ Women/
Transgender beneficiaries and
beneficiaries from the Scheduled
Areas.
ii.50% of fixed capital expenditure
limited to Rs.6.00 Crore, whichever is
lower for other beneficiaries.
Interest Interest subvention up to 6% Not Applicable
Subvention
Working Cold storage units will be entitled to reimbursement of interest paid by
Capital
them to banks on Cash Credit Working Capital loans availed from banks
Support
similar to the provisions under CM-SRIM scheme of MSME Department.
Slabs Limit of Working Reimbursement of interest
Capital Loan paid (in Percentage)
Sanctioned (i.e. Cash
Credit limit) by banks
Slab -1 Up to Rs. 10 Lakh 100%
Slab -2 Above Rs.10 Lakh and 75%
up to Rs. 50 Lakh
Slab-3 Above Rs. 50 Lakh and 50%
up to Rs. 1 Crore
Slab-4 Above Rs. 1 Crore and 25%
up to Rs. 5 Crore
Electricity Tariff subsidy @50% on total electricity In case of existing operational
Tariff bill shall be given for a maximum units, and units that may be
Subsidy period of seven years from the date of revived in future, the electricity
commencement of new cold storage tariff subsidy will be paid for a
units. maximum period of 7 years.
Electricity tariff subsidy will be factored in at the time of preparing the
monthly bill by the electricity distribution company, who shall directly be
reimbursed by the Government.
Revival of Not Applicable In addition to the financial and
non- other assistances mentioned
functional above (excepting Capital
Cold Investment subsidy), special
Storages financial assistance up to
maximum Rs.1.5 Crore may be
considered, on a case to case
basis, in case of non-functional
units willing for revival. The
special financial assistance can
be given only towards arrear
electricity dues, arrear taxes,
arrear bank dues and such other
statutory and non-statutory
dues to be paid to the
Government or public utility
service providers.
ii. Cold storage units will be tagged to potential APC clusters. Agriculture Production
Clusters (APC) will be set up in the catchment of the Cold Storage Units. Training and
capacity building of farmers and stakeholders will be taken up. Cold storage units
may take up the role of facilitating agency, and Directorate of Horticulture will
provide financial assistance as being given to NGO partners, for convergence of
related schemes through a hub (cold storage) and spoke model.
iii. Storage and transport subsidies will be paid through PHM scheme of Directorate of
Horticulture.
iv. In case of multiple applications for establishment of new Cold Storage units in a
particular Block, applicant seeking least financial assistance from Govt. (CIS, etc.) will
be selected.
v. The scheme shall be implemented through APICOL.
vi. Department of Agriculture & FE will leverage funds from available schemes under
Government of India, wherever possible.
vii. Capital Investment Subsidy (CIS) assistance available under this Scheme shall be
provided by including cost of land and building in capital expenditure.
viii. The continuing State Sector Scheme "Electricity Tariff to Cold Stores" will be merged
with this scheme to ensure convergence and smooth implementation.
ix. Subsidy payments under the scheme will be made through mirror bank accounts as
per existing mechanism adopted for MKUY scheme.
4. Financial Implications
The scheme has been approved with a budget outlay of Rs. 252.00 crores over a period
of 5 years from 2025-26 to 2029-30.
ORDER: Ordered that the Notification be published in the Extra-Ordinary issue of the Odisha Gazette
and copies thereof be forwarded to all the Departments of Government.
By order of the Governor
(Dr. Arabinda Ku r+acl-h—d- F7
Principal Secretary to Govt.
