
Integrated Cold Chain Scheme (PMKSY) — 35% / 50% Grant up to ₹10 Crore for Pre-Cooling, Pack-Houses, Cold Storage, Reefer Transport, IQF and Value-Addition Infrastructure: Eligibility, Eligible Components, Promoter Contribution, the EOI Process and Release of the Grant
Video Explanation & Insights
Cold chain subsidy of ₹10 crore — 50% government subsidy for food processing units
4 videos on this topic
What the scheme funds — and why
Post-harvest losses in fruit, vegetables, dairy, meat and marine products are the gap the scheme targets: it funds integrated cold-chain and preservation infrastructure from the farm gate to the consumer, without a break in the chain, so that produce reaches processors and markets at better prices for farmers and with less waste. The Ministry of Food Processing Industries implements it under PM Kisan SAMPADA Yojana; projects are selected through Expression of Interest windows, generally once or twice a year depending on funds.
| Component | Examples |
|---|---|
| Farm-level infrastructure | Pre-cooling units, mobile pre-coolers, collection centres, pack-houses, sorting/grading/washing lines |
| Storage | Cold storage (multi-chamber, multi-product), controlled-atmosphere storage, ripening chambers, frozen storage |
| Transport | Reefer trucks and vans, insulated vehicles, mobile cooling units |
| Processing and value addition | IQF (individually quick frozen) lines, blast freezers, milk processing and chilling, retail-ready packaging, irradiation facilities |
| Distribution hubs | Distribution-level cold stores linked to the chain |
- •Eligible cost: plant and machinery, technical civil works (the structure that houses the cold rooms and machinery), insulated transport, electrical installations and supporting infrastructure; land, labour quarters, offices and pre-operative expenses are excluded.
- •Grant rates: 35% in general areas and 50% in NE, Himalayan states, ITDP areas and islands for storage and transport infrastructure; value-addition and processing infrastructure and irradiation facilities attract higher rates (50% / 75%) under the guidelines; maximum ₹10 crore.
- •Eligible applicants: individuals, proprietorships, partnerships, LLPs, companies, FPOs, co-operatives, SHGs, NGOs, PSUs — new projects with an integrated chain (at least two components, e.g. pack-house + cold storage + reefer transport, as the guidelines specify).
- •Finance: at least 20% promoter contribution; a term loan from a scheduled bank/FI is compulsory (loan not above 80% of project cost); the grant is not part of the means of finance for the bank's margin.
Application to release
- 1EOI: apply online on the PMKSY portal during the window with the processing fee, DPR, land documents, bank in-principle sanction, promoter KYC and net-worth certificate, registrations (GST, FSSAI where applicable, Udyam).
- 2Evaluation: technical committee scoring (integration of components, capacity, backward linkages with farmers/FPOs, technology, employment, promoters' strength) and approval by the Project Approval Committee; approval letter with conditions.
- 3Implementation within 24 months of approval — orders, civil works, machinery from the quoted vendors (imported machines with justification), commissioning; time-bound progress reports.
- 4Grant release in instalments against certified expenditure and proportionate bank disbursement (CA certificate of expenditure, bank statement, inspection), with the final instalment after commissioning and verification; a performance security/bank guarantee may be required.
- 5Post-completion: operate the facility for the lock-in period, maintain the farmer/FPO linkages committed in the DPR, and file the utilisation and impact reports the ministry asks for.
Cold chain scheme: questions we are asked
The scheme wants an integrated chain — combine the store with pack-house/pre-cooling and/or reefer transport as the guidelines require; standalone stores may fit state or NABARD schemes.
Yes — individuals and proprietorships are eligible alongside FPOs, partnerships, LLPs and companies.
Yes — refrigerated/insulated transport is an eligible component of the chain.
No — land and pre-operative expenses are excluded; the promoter funds them outside the eligible cost.
At least 20% of the project cost; the bank loan cannot exceed 80%; the grant comes later, in instalments.
Yes — component design within eligible cost, DPR, bank tie-up, EOI filing, and grant claims through release.