Project Report for Multipurpose Cold Storage
After harvest, 15–30% of India’s fruits and vegetables are lost. This isn’t because no one cares, but rather because there isn’t enough cold storage, and the majority of what is available is single-commodity potato storage that doesn’t benefit an onion trader or a mango farmer. That is altered by a multipurpose cold storage system. Sharda Associates has produced more than 45,500 CA-certified multipurpose cold storage project reports for bank loans, NHB, and AIF. beginning at ₹2,999.
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What Makes a Cold Storage "Multipurpose"?
By conservative estimates, nearly 75% of India’s cold storage capacity is used for single-commodity potato storage. It operates at potato temperature (2-4°C), was designed for potatoes, and isn’t very helpful for anything else. Mangoes should be kept between 8 and 12 degrees Celsius. An entirely different strategy is required for onions, which should be aired, have less humidity, and be either ambient or slightly cooled.
This is addressed by multipurpose cold storage, which has several chambers with independent temperature and humidity controls, allowing the facility to store several commodities concurrently or alternate between commodity kinds according to the season. A well-designed multifunctional facility can operate at respectable occupancy for the majority of the year by servicing different commodities in different seasons, as opposed to the traditional potato cold storage pattern of being completely occupied for six months and empty for the remaining six.
Because it tackles the post-harvest loss issue more thoroughly than another potato cold storage facility, this is precisely the type of investment that the government’s subsidy programs (NHB, AIF, and NABARD) are intended to support. It is also more complicated and costly to construct than a single-commodity facility.
What Can a Multipurpose Cold Storage Store Do?
Flexibility is what makes the multifunctional model so beautiful, but it must be planned rather than being taken for granted. What various commodities require and why distinct chambers are important are as follows:
Fruits (mango, apple, grape, citrus): high relative humidity (90–95%), temperature range 0–12°C, depending on variety. Because ethylene causes ripening, mangoes and bananas require ethylene management.
Vegetables (leafy greens, tomatoes, and capsicums): high humidity, 0–10°C depending on type. Tomatoes thrive in temperatures between 10 and 13°C; lower temperatures cause cold damage. Fruits that produce ethylene cannot coexist in a room with leafy greens, which require near-freezing temperatures and extremely high humidity.
Potatoes: the traditional Indian cold storage product, should be kept between 2-4°C and 90-95% humidity. At conventional Indian cold storage criteria, one chamber can be set aside for potatoes if they are a part of your mix.
Onion: Contrary to popular belief, onions do not fare as well in traditional cold storage as they do in vented ambient storage. However, exporters use controlled temperatures between 0 and 5°C with lower humidity levels (65 to 70%) to greatly extend the shelf life of processed and value-added onions. Potatoes absorb the flavor of onions, hence onions and potatoes cannot coexist.
Dairy and processed: foods should be stored in freezers between -18°C and -22°C for ice cream and frozen processed foods, and in chillers between 0°C and 4°C for fresh dairy, paneer, and processed meat.
Pharmaceuticals: 2-8°C (vaccine-range cold chain) or 15-25°C (controlled ambient): is a high-margin, specialized segment that some multipurpose facilities include as a dedicated chamber because of its much greater income per cubic meter of storage.
Why Multipurpose Is Better Economics — If You Do It Right
In a typical northern Indian state, a single-commodity potato storage fills in November and December and gradually empties over the year, with revenue concentrated from April to September when farmers and traders remove stock for sale. There is a chance that the chamber will be empty from October to November, and the risk increases if the potato harvest is weak.
A facility with several uses can:
- Potatoes should be stored from November to June.
- In the summer (April–July), switch entirely or partially to fruits (mango, grapes).
- Store dairy and processed foods in freezer chambers under contract for the entire year.
- Accept pharmaceutical storage for the space that isn’t being used for perishables.
As a result, the average yearly utilization is higher than that of a single-commodity facility, which directly translates into better DSCR, which is what the bank considers important when assessing the project.
The drawbacks are real: multi-commodity storage is more expensive to construct (several refrigeration systems, more complex controls), more difficult to operate (various temperature zones, different handling protocols, different customer kinds), and necessitates a larger client acquisition effort. This intricacy must be openly acknowledged in the project report, and realistic utilization ramp-up rather than optimistic year-one figures must be reflected in the financial predictions.
Subsidy Schemes — NHB, AIF, and NABARD
One of India’s most frequently subsidized agri-infrastructure projects is multipurpose cold storage, and for good reason—it directly tackles issues with farmer income and national food security.
NHB (National Horticulture Board) — 35% Credit-Linked Subsidy: Following construction, inspection, and verification by NHB, 35% of the qualified project cost (55% in northeastern/hilly states) is applied to the loan account as a non-repayable backside subsidy. Repayment economics are greatly improved as a result of the 35% reduction in the outstanding bank loan. Multipurpose facilities that store fruits and vegetables are eligible for NHB’s focus on cold storage of horticulture produce.
AIF (Agriculture Infrastructure Fund) – 3% Interest Subvention: CGTMSE collateral-free loans up to ₹2 crore are eligible for a 3% annual interest subvention for seven years. The majority of well-structured multipurpose cold storage applications are filed using a mix of AIF and NHB on the same project (different ceilings, various subsidy schemes).
NABARD Refinance: Through partner banks, NABARD offers refinance support for cold storage and agri-infrastructure, lowering the bank’s cost of funding and usually allowing the borrower to get more favorable interest rates.
Combined effect on a ₹2 crore project: AIF 3% subvention on the remaining ₹1.30 lakh loan for seven years saves about ₹27,000 annually; NHB 35% = ₹70 lakh subsidy (post-construction). Significant overall effective reduction in the capital burden.
Project Cost For Multipurpose Cold Storage
Component | Medium Facility (₹) | Larger Facility (₹) |
PUF insulated chamber construction (multi-chamber) | 25,00,000–45,00,000 | 50,00,000–90,00,000 |
Refrigeration systems (multiple, one per chamber) | 15,00,000–30,00,000 | 30,00,000–60,00,000 |
Temperature/humidity controls and monitoring | 3,00,000–6,00,000 | 6,00,000–12,00,000 |
Loading dock, material handling equipment | 3,00,000–6,00,000 | 6,00,000–12,00,000 |
Electrical infrastructure + backup DG set | 5,00,000–10,00,000 | 10,00,000–20,00,000 |
Civil construction (building, approach) | 5,00,000–10,00,000 | 10,00,000–20,00,000 |
Working capital (first season) | 3,00,000–5,00,000 | 5,00,000–10,00,000 |
Total (approx.) | ₹59–1.12 crore | ₹1.17–2.24 crore |
The cost is higher than that of a single-chamber facility since each temperature zone requires a separate refrigeration circuit, which calls for additional compressors, condensers, and evaporators. A refrigeration failure in one chamber shouldn’t spread to other chambers, thus this is not the place to take short cuts.
Why Choose Sharda Associates
- Over 45,500 Project Reports Completed– extensive knowledge in food preservation, cold storage, agri-infrastructure, and subsidy-related projects throughout India.
- Support for NHB, AIF, and NABARD Documentation– For applications supported by NABARD, AIF funding, and NHB subsidies, we create a coordinated project report package.
- Included in Temperature Zone Planning– Different storage conditions are needed for different chambers. We accurately record the humidity and temperature requirements for fruits, vegetables, dairy, medications, and frozen goods.
- Documentation on AIF Farmer Linkage– We assist in preparing the beneficiary, farmer, and FPO linkage information needed for the Agriculture Infrastructure Fund (AIF) program.
- Accurate Estimates of Capacity Utilization– Stronger bank acceptance and accurate cash flow predictions are ensured by financial projections that are grounded in actual occupancy increases.
- Starting at ₹2,999 · 24–48 working hours ·
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Frequently Asked Questions
Fruits, vegetables, dairy products, and pharmaceuticals can all be stored concurrently at the proper temperatures in a multipurpose cold storage facility, which contains many independently temperature-controlled chambers. Regular (single-commodity) cold storage, which makes up the majority of the installed base in India, usually has a single temperature zone intended for a particular commodity (usually potatoes at 2-4°C) and is unable to effectively store other commodities.
Following construction and inspection, the National Horticulture Board (NHB) offers a 35% credit-linked backside subsidy (55% in northeastern and hilly states). AIF (Agriculture Infrastructure Fund) offers CGTMSE collateral-free loans up to ₹2 crore with a 3% interest subsidy for seven years. NABARD offers bank-based refinancing assistance. We prepare the documentation for all three at the same time, so they can all be pursued concurrently on the same project.
A refrigeration circuit with a compressor, condenser, and evaporator sized for the temperature and load of each temperature zone is necessary. In contrast to a single-commodity facility, which requires one refrigeration system, a facility with four distinct temperature zones requires four. This is further enhanced by a number of control systems and monitoring infrastructure. The flexibility and increased utilization potential come at the expense of a greater initial cost.
Yes, in distinct chambers with the proper temperature control (2–8°C for biological goods and vaccines, 15–25°C for controlled ambient pharmaceutical storage). If the area has adjacent pharmaceutical supply chain needs, it is worthwhile to account for pharmaceutical storage in the chamber design since it has a much greater margin segment than food storage per cubic meter. Air handling, access procedures, and separate chambers are used to control the danger of cross-contamination.
35% of the qualified project cost is given by NHB as a credit-linked backside subsidy, which is non-repayable and credited to the bank loan account following the facility's construction, commissioning, and NHB verification. not made public right away. The subsidy lowers the remaining principal after verification, and the construction must be financed by the bank loan (less the promoter margin). The project report needs to accurately reflect this sequencing.
For post-harvest infrastructure loans up to ₹2 crore, AIF offers a 3% annual interest subvention for seven years without requiring CGTMSE collateral. AIF lowers the interest expense on the remaining loan, in contrast to NHB, which is a capital subsidy that reduces principal. Both methods can be used concurrently on the same project and operate on distinct aspects of the financial structure.
In order to prove the supply chain connection between the investment and the real farmer benefit, AIF applicants must include data identifying the farmers or farmer producer organizations (FPOs) that will utilize the storage facility. This usually entails verification of connections with regional agricultural cooperatives or mandis, or a letter of intent or memorandum of understanding from local farmer organizations. Many applicants are not aware of this particular AIF eligibility criteria.
Potatoes preserve nicely in 90–95% humidity and 2-4°C. Onions are best kept in vented, low-humidity storage (65–70% humidity) at 0–5°C. Crucially, potatoes and onions cannot be kept in the same room because potatoes absorb onion flavor, which degrades the potatoes' quality. Separate, suitably conditioned chambers are required for each in multipurpose facilities that intend to store both.
The duration of NHB processing varies depending on the state and the workload of the NHB office. Generally, it takes three to six months from the completion of an application to its sanction, plus extra time for building, the post-completion inspection, and the disbursement of subsidies. After all paperwork is completed, AIF applications submitted through participating banks usually take 4–8 weeks to be approved. It is reasonable to estimate that the entire process from application to subsidy receipt will take 12 to 18 months. Depending on your state and scheme window, we can provide you with updated timeline advice.
Starting at ₹4,999 (more expensive than typical project reports because of the complexity of the multi-scheme documentation—NHB, AIF, and bank DPR format generated concurrently) and delivered within five to seven business days. Verified DSCR above 1.25, realistic utilization ramp-up, power backup costs, AIF farmer beneficiary paperwork, and multi-chamber temperature criteria. Free revision in the event that a bank, NHB, or AIF authority has any questions. Give +91 89899 77769 a call.