Cold Storage Subsidy in India — NHB, AIF, PMKSY & NABARD
Setting up a cold storage or cold chain unit? Central and state schemes offer capital and credit-linked subsidies to reduce your project cost. Sharda Associates prepares CA-reviewed project reports and maps your project to the right scheme.
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4+
Government Subsidy Schemes
Up to 50%
Capital Subsidy Available
6-step
CA-reviewed process
Definition
What Is Cold Storage Subsidy?
Cold Storage Subsidy is financial assistance provided by the Central Government and State Government under schemes such as NHB, Agriculture Infrastructure Fund (AIF), PMKSY, NABARD, and various state subsidy programmes. It helps eligible farmers, FPOs, MSMEs, cooperatives, startups, and agribusinesses reduce the cost of setting up cold storage, cold chain, and refrigerated warehousing infrastructure. Depending on the applicable scheme and eligibility, support may be available as a capital subsidy, interest subvention, or credit-linked financial assistance to encourage investment and reduce post-harvest losses.
Namira Ansari
9 months ago
CA Anugrah and his team are very polite, helpful, and excellent at their work.
W. Zing Shali
9 months ago
Sharda Associates made 4 DPR for me, with so much patience and dedication. They made so many changes according to my request but was very patient with me.
Thank you all for your services 🙏🏻
Thank you all for your services 🙏🏻
ANKIIT KUMMAR
11 months ago
He is skilled and efficient in his work.
Swadhin Jaroli
11 months ago
Best service provided by the firm
Pratik Chautel
11 months ago
Excellent Service.
Rohit Dora
1 year ago
Had to give two stars for the lack of commitment from the team.
Before paying for the service, I have enquired if there is any time restriction or restriction on number of changes and was told no. However Second report was erroneous and had to make corrections for the points missed.
Now the team wants me to pay additional amount for making changes related to Fiinancials.
Extremely disappointed
Before paying for the service, I have enquired if there is any time restriction or restriction on number of changes and was told no. However Second report was erroneous and had to make corrections for the points missed.
Now the team wants me to pay additional amount for making changes related to Fiinancials.
Extremely disappointed
Nikhil
2 years ago
I would like to thanks Sharda Associates for their timely and pocket friendly services!! When it comes to applying for any loan in bank or under any government scheme, project reports play very important role in its approval . I got my project report prepared by Sharda Associates...which they prepared very professionally on time and also did multiple corrections whenever it was asked by bank. I will suggest everyone to take services from Sharda Associates for the best project reports and quick loan approvals from the bank or government scheme.
Chethan S
2 years ago
I had an excellent experience with Sharda Associates. They provided a beautifully detailed project report that exceeded my expectations. Their professionalism and attention to detail were evident in every aspect of the report.
Eligibility
Who Can Apply for Cold Storage Subsidy?
Farmers
Individual farmers and group farmers setting up cold storage facilities
Farmer Producer Organisations (FPOs)
Registered FPOs developing post-harvest and cold chain infrastructure.
MSMEs
Micro, Small & Medium Enterprises engaged in agriculture, food processing, or cold storage.
Cooperative Societies
Cooperative societies, dairy unions, and agricultural cooperatives.
Startups
Agri-tech, food-tech, and cold chain startups.
Government Support
Government Schemes for Cold Storage Subsidy in India
1
Capital subsidy for eligible cold storage projects supporting horticultural produce and post-harvest infrastructure.
2
Agriculture Infrastructure Fund (AIF)
Provides 3% interest subvention and credit guarantee support on eligible agriculture infrastructure projects, including cold storage.
3
PMKSY Cold Chain Scheme
Supports integrated cold chain, value addition, and preservation infrastructure from farm gate to consumer.
4
NABARD Infrastructure Support
Refinancing and financial assistance for eligible warehousing and cold storage projects through participating banks.
5
State Government Cold Storage Subsidies
Many state governments offer additional capital subsidies, interest subsidies, or special incentives under their agriculture and food processing policies.
Financial Assistance
Subsidy & Financial Assistance Available
The financial assistance available depends on the applicable scheme, project location, applicant category, and the latest government guidelines
Capital Subsidy — General Category
35%
Typical share of eligible project cost under NHB and similar schemes 25–35%
Capital Subsidy — General Category
50%
Higher subsidy ceiling for special category regions and applicants. Up to 50%
AIF Interest Subvention
3%
Annual interest subvention on the sanctioned term loan amount.Up to 3%
AIF Credit Guarantee Cover
2%
Available for eligible MSME borrowers under CGTMSE-linked cover.Up to ₹2 Cr
Project Cost
Cold Storage Project Cost in India
The cost of setting up a cold storage project depends on the storage capacity, refrigeration technology,
location, construction specifications, and utility requirements.The final project cost varies based on
the project's size and operational needs.
Storage Capacity
Higher storage capacity increases the overall project cost but can reduce the cost per tonne of storage.
Refrigeration Technology
Controlled Atmosphere (CA), Multi-Chamber, and advanced refrigeration systems cost more than conventional cold storage units.
Project Location
Land price, power availability, transportation access, and local construction costs significantly influence the total investment.
Infrastructure & Civil Work
Building design, insulation panels, loading docks, electrical systems, and utility installations form a major part of the project cost.
Machinery & Equipment
Compressors, condensers, evaporators, racking systems, generators, and monitoring equipment directly affect the capital investment.
Contents
What Does a Cold Storage Project Report
Include?
01
Project Cost
Civil work, refrigeration system, insulation panels, machinery, utilities, and pre-operative expenses.
03
Capacity & Technical Details
Storage capacity, chamber configuration, refrigeration technology, and utilities.
04
Market & Demand Analysis
Demand assessment, target customers, produce availability, and market opportunity.
05
Financial Projections
Projected revenue, operating expenses, profitability, and break-even analysis.
06
Cash Flow, DSCR & Financial Ratios
Cash flow projections, DSCR, ROI, and loan repayment capacity.
07
Subsidy Eligibility Mapping
Applicable government schemes, eligibility criteria, and expected financial assistance.
08
Implementation Schedule
Project timeline from planning and construction to commissioning and subsidy claim
Preparation
Documents Required for Cold Storage Subsidy
Business Documents
- Udyam (MSME) Registration (if applicable)
- Certificate of Incorporation / Partnership Deed / LLP Agreement
- PAN Card of the Entity & Promoters
- GST Registration (if applicable)
Financial Documents
- Bank Statements (Last 6–12 Months)
- Income Tax Returns / Audited Financial Statements
- Net Worth Statement of Promoters
- Existing Loan Details (if any)
Land / Site Documents
- Ownership or Registered Lease Deed
- Site Layout Plan
- Land Use / Conversion Approval (if required)
Technical Documents
- Machinery & Refrigeration System Quotations
- Capacity & Technical Specifications
- Power Load Sanction / Electricity Connection Details
Project Documents
- Detailed Project Report (DPR)
- Project Cost Estimate
- Means of Finance
- Implementation Schedule
Scheme-Specific Documents
- Subsidy Scheme Application Form
- FPO/Cooperative Registration (if applicable)
- Any additional documents required under NHB, AIF, PMKSY, NABARD, or the applicable State Scheme
Application Path
How to Apply for Cold Storage Subsidy
1
2
3
4
5
6
Check Eligibility
Map project to the
right scheme
Prepare DPR
Detailed project report
drafted
Apply
Submit via scheme
portal or bank
Bank Appraisal
Loan sanctioned
against DPR
Commission Unit
Construction &
installation complete
Claim Subsidy
Subsidy disbursed
post-verification
Our Role
How Sharda Associates Helps
DPR Preparation
CA-reviewed project reports prepared for bank loans and government subsidy applications
Scheme Eligibility Assessment
We identify the most suitable scheme based on your project, location, and eligibility.
Financial Projections
Preparation of project cost, CMA data, cash flow, DSCR, profitability, and repayment analysis.
Documentation Support
Guidance on collecting and organising the documents required for banks and subsidy authorities.
Bank & Lender Support
Project reports prepared in formats commonly accepted by banks and financial institutions.
Subsidy Documentation
Support with subsidy-related documentation and claim requirements, subject to the applicable scheme.
Common Pitfalls
Common Reasons Cold Storage Subsidy Applications Get Rejected
Incomplete DPR
Missing financial or technical details may delay the application or require resubmission.
Incorrect Scheme Selection
Applying under a scheme that does not match the project’s eligibility criteria.
Unrealistic Project Cost
Project cost or capacity estimates that are not supported by quotations or technical details.
Missing Land & Ownership Documents
Incomplete ownership, lease, or land-use documents can delay approval.
Weak Financial Projections
Cash flow, DSCR, or profitability estimates that do not support loan repayment.
Non-Compliance with Scheme Guidelines
Project specifications or documentation not meeting the applicable scheme requirements.
Sharda Associates
Why Choose Sharda Associates?
CA-Reviewed Reports
Every report is checked by a chartered accountant before delivery.
Bank-Ready Documentation
Formatted to match the specific bank's appraisal requirement.
Agriculture Finance Expertise
Deep, hands-on experience across dairy, horticulture, food processing, and government-linked agri schemes.
Fast Turnaround
Reports move quickly once documents are in hand.
PAN India Service
We work with applicants and banks across states, not just one region.
Revision Support
If your bank asks for changes, we revise the report at no extra back-and-forth.
FAQs
Frequently Asked Questions
Cold storage subsidy in India 2026 is a government-sponsored plan that assists entrepreneurs in lowering the cost of establishing cold storage units. It is mostly provided through schemes such as NHB and PMKSY. Farmers, MSMEs, startups, and agribusiness owners who have a proper business strategy and project report are eligible to apply for bank loan approval.
Yes, a project report is required for approval of a cold storage loan. Banks want a full report to comprehend your company's model, investment strategy, anticipated income, and payback capabilities. A properly designed project report boosts your chances of acceptance and allows you to receive government subsidies under numerous schemes in India.
Cold storage enterprises in India typically receive subsidies ranging from 35% to 55%, depending on the scheme, region, and applicant category. Rural locations, for example, and specific categories such as women or SC/ST entrepreneurs frequently receive higher subsidy benefits. This considerably lowers the overall project cost and the financial load on the business owner.
The cost of establishing a cold storage facility in India varies according to its size and capacity. Small units range from ₹25 lakh to ₹1 crore, whereas larger industrial units might cost ₹25 crore or more. The whole cost consists of land, construction, machinery, refrigeration systems, and working capital requirements.
Yes, the cold storage industry in India is quite profitable due to rising demand for food preservation and supply chain management. With adequate design, a decent location, and government subsidy assistance, the business can earn consistent income from storage rent, long-term contracts, and seasonal demand, making it an excellent long-term investment option.
To apply for a cold storage subsidy and loan, you must first create a complete project report and then submit it to a bank for loan approval. After that, you can apply for a subsidy through schemes such as NHB or PMKSY. Proper documentation and professional guidance contribute to faster approval and smoother processing of both the loan and the subsidy.
The primary government schemes that provide subsidies for cold storage units in India are the NHB (National Horticulture Board), the PMKSY (Pradhan Mantri Kisan Sampada Yojana), and several state-level subsidy programs. These programs attempt to improve cold chain infrastructure and reduce post-harvest losses by providing financial help to entrepreneurs.
Professional consulting is essential since creating a cold storage project report necessitates technical, financial, and banking expertise. Experts guarantee that your report meets bank criteria, contains realistic financial estimates, and follows subsidy guidelines. This considerably improves your chances of loan acceptance while avoiding rejection due to errors or missing documentation.