The NHB subsidy for a polyhouse project is not calculated simply as a percentage of whatever amount you spend on the project. It depends on the applicable National Horticulture Board scheme, protected-cultivation area, eligible components, prescribed cost norms and the latest subsidy pattern applicable when your project is considered. This distinction is particularly important in 2026 because NHB has recently amended its Commercial Horticulture Scheme. Sharda Associates can help you prepare a project-specific DPR, project cost, means of finance, bank-loan projections and subsidy calculations so that you understand how much of your proposed polyhouse investment may actually be eligible before committing funds. For assistance, call +91 89899 77769.
How Much Subsidy Is Available for an NHB Polyhouse Project?
Under the previously published NHB/MIDH framework for Commercial Horticulture Development under protected conditions, projects above 2,500 sq. metres were considered in project mode. The published assistance pattern provided 50% credit-linked subsidy on the eligible project cost, subject to a maximum subsidy of ₹100 lakh per project.
However, this is where applicants need to be careful.
NHB issued an amendment dated 21 August 2026 to its Commercial Horticulture and Cold Storage Scheme, and the NHB website currently marks the January 2025 operational guidelines as being under revision. Information surrounding the revised notification indicates that assistance for protected-cultivation projects in general areas has been reduced from the earlier 50% level.
Therefore, a farmer preparing a new polyhouse project in 2026 should not prepare the DPR by automatically assuming 50% subsidy. The applicable percentage and treatment of existing or already-sanctioned projects should be confirmed according to the latest NHB notification before the project’s means of finance is finalised.
Does 50% Subsidy Mean You Get Half of Your Actual Polyhouse Cost?
Not necessarily.
This is one of the biggest misunderstandings about horticulture subsidies.
Suppose your polyhouse actually costs ₹1.20 crore. You cannot simply calculate:
₹1.20 crore × 50% = ₹60 lakh subsidy.
NHB assistance is calculated with reference to the eligible project cost and prescribed cost norms. If an item costs more in the market than the admissible amount under the scheme, the excess cost may have to be funded by the promoter.
For example, if your actual project expenditure is ₹1 crore but only ₹80 lakh is considered eligible under the applicable cost norms, the subsidy calculation would normally be based on the eligible amount rather than blindly on the full ₹1 crore.
This is why the actual project cost and subsidy-eligible project cost should be shown separately while planning a polyhouse project.
What Costs Can Form Part of a Polyhouse Project?
A commercial polyhouse normally involves more than just the greenhouse structure.
Depending on the crop and technology selected, project costs may include the protected structure, irrigation and fertigation systems, fogging systems, crop-support systems, planting material and cultivation expenses, water infrastructure and permitted add-on components.
For some projects, automation, circulation fans, hydroponic or aeroponic systems and other approved components may also be relevant, subject to the current scheme norms.
The important point is that every expense appearing in your supplier quotation does not automatically become eligible for subsidy.
Your DPR should therefore clearly separate:
Total investment required for the business
from
Cost that may be admissible for subsidy calculation.
How Does Polyhouse Area Affect NHB Subsidy?
Area is important because NHB handles larger protected-cultivation projects in project mode.
Under the published framework, commercial horticulture development under protected conditions generally covered projects with an area above 2,500 sq. metres. Special lower-area provisions existed for certain North-Eastern states.
For smaller protected-cultivation projects, assistance may instead fall under the applicable MIDH/State Horticulture Mission route depending on the activity, state and current implementation framework.
Therefore, if someone plans a 1,000 sq. metre, 4,000 sq. metre and 10,000 sq. metre polyhouse, the subsidy route should not automatically be assumed to be identical.
The first calculation should therefore begin with:
Project location + Polyhouse area + Crop + Structure type + Applicable implementing agency.
Illustrative Example of Polyhouse Subsidy Calculation
Consider an illustrative project where the subsidy-eligible project cost is assessed at ₹80 lakh.
| Particular | Illustrative Amount |
| Actual Project Cost | ₹95 lakh |
| Eligible Cost as per applicable norms | ₹80 lakh |
| If assistance applicable at 50% | ₹40 lakh |
| Amount above eligible cost | Not automatically subsidised |
This example is only to explain the calculation method.
It should not be treated as confirmation that your new project will receive 50% subsidy, particularly because the NHB assistance framework has been amended in August 2026.
Your actual assistance should be calculated only after checking the latest applicable subsidy pattern.
Is NHB Polyhouse Subsidy Linked With a Bank Loan?
For relevant commercial horticulture projects, NHB assistance has historically operated as a credit-linked subsidy.
This means the financing structure is important.
A typical project may involve:
Promoter Contribution + Bank Term Loan + Eligible Subsidy
The subsidy should not simply be treated as cash available on the first day for construction.
Applicants should understand the applicable clearance, bank financing, implementation, inspection and subsidy-claim process before beginning the project.
This is also why the DPR submitted to the bank should not show subsidy as guaranteed income.
Instead, it should clearly state that assistance is subject to scheme eligibility, applicable norms, approval, successful project implementation, inspection and availability/compliance under the prevailing NHB framework.
Why Is a DPR Important for a Polyhouse Subsidy Project?
A good DPR helps connect the technical project with its financial requirement.
For example, if you propose a 5,000 sq. metre polyhouse for capsicum, the report should explain whether the investment and expected production are commercially reasonable.
The DPR may cover the project location, crop, polyhouse structure, cultivation plan, supplier quotations, project cost, funding, production assumptions, expected sales, operating expenses, working capital and repayment of the proposed bank loan.
The figures should also remain consistent.
If the greenhouse vendor quotation is ₹70 lakh but the DPR shows ₹45 lakh without explanation, or the DPR assumes a much larger area than the actual structure, the project documentation becomes difficult to support.
Can I Get the Maximum ₹1 Crore NHB Subsidy?
The earlier published NHB framework mentioned a maximum assistance ceiling of ₹100 lakh per project for commercial horticulture under protected conditions.
But this does not mean every large polyhouse receives ₹1 crore.
To reach any maximum ceiling, the project would first need sufficient eligible project cost under the applicable component-wise norms and also satisfy the prevailing scheme conditions.
Moreover, because NHB has issued a new amendment in August 2026, applicants planning a fresh project should confirm whether the earlier ₹1 crore ceiling and assistance percentage apply in the same form to their application.
Do not design a ₹2 crore project solely because you assume:
“NHB will definitely give me ₹1 crore.”
First determine the actual eligible project cost and current assistance pattern.
What Can Reduce the Subsidy Amount You Actually Receive?
The final eligible assistance can differ from the amount initially expected where the actual expenditure, approved area, technical specifications or eligible components differ from the sanctioned/projected structure.
Problems can also arise where quotations, invoices, bank-finance documents and project completion details do not match.
For this reason, maintain proper documentation from the beginning rather than trying to prepare the subsidy file after the entire project has already been completed.
Your structure supplier, crop plan, DPR, bank loan and subsidy application should all describe the same project.
How Can Sharda Associates Help With an NHB Polyhouse Project?
Sharda Associates can help entrepreneurs and horticulture-project promoters understand the financial structure of a proposed polyhouse project before applying for bank finance or subsidy.
The assistance can include preparation of the DPR, project-cost assessment, means of finance, term-loan requirement, financial projections, working-capital estimates, profitability, cash flow and subsidy-related calculations based on the information and current scheme provisions available for the project.
Where technical specifications are required, the DPR can incorporate information supplied by the polyhouse manufacturer, horticulture expert or other appropriate technical professional.
Most importantly, subsidy should be treated as eligible financial assistance subject to approval, not as guaranteed project funding.
For assistance with your polyhouse DPR and financial planning, call +91 89899 77769.
Frequently Asked Questions
How much NHB subsidy can I get for a polyhouse?
The amount depends on the current assistance percentage, eligible project cost, prescribed cost norms, project area and applicable scheme provisions. The earlier published protected-cultivation framework provided 50% assistance up to ₹100 lakh per project, but NHB issued an amendment on 21 August 2026, so fresh applicants should verify the revised rate before calculating subsidy.
Is NHB subsidy calculated on my complete project cost?
Not necessarily. The calculation is based on eligible/admissible project cost under applicable cost norms. Any excess over admissible norms may have to be funded separately.
Can I get ₹1 crore subsidy for every large polyhouse?
No. A maximum ceiling does not mean every applicant receives the maximum. Actual eligible assistance depends on the project and prevailing scheme norms.
Is a bank loan compulsory for NHB polyhouse subsidy?
NHB commercial horticulture assistance has generally been structured as credit-linked assistance for applicable private projects. The latest financing and application conditions should be verified for the specific proposal.
Can I start constructing the polyhouse before applying?
Do not assume that you can complete the project first and apply later. The correct application, clearance and implementation sequence should be checked before starting expenditure.
Is subsidy available for vegetables grown in a polyhouse?
Protected cultivation assistance can cover specified high-value horticulture crops subject to current crop/component norms and eligibility.
Does subsidy cover the entire greenhouse quotation?
No. Only eligible components within applicable cost norms are considered for assistance.
Is NHB subsidy guaranteed after preparing a DPR?
No. A DPR supports project and bank appraisal, but subsidy remains subject to scheme eligibility, approval, implementation, inspection and other applicable conditions.
Conclusion
The answer to “How much NHB subsidy can I get for my polyhouse?” cannot be determined by multiplying the supplier quotation by one subsidy percentage. You first need to identify the correct scheme, project area, eligible components and admissible cost norms.
For protected-cultivation projects, NHB’s previously published framework provided substantial credit-linked assistance and a maximum project-level ceiling, but the scheme has been amended in August 2026. Therefore, anyone planning a new polyhouse today should have the applicable subsidy percentage confirmed before finalising the DPR, promoter contribution or bank-loan amount. Read More: +918989977769