Cold Chain & Agri-Processing — NABARD | PMFME | NHB | MSME

Project Report for Cold Storage Business — Ready in 60 Seconds

Bank-ready project report for cold storage, refrigerated warehouse, or cold chain logistics business. Covers NABARD Capital Investment Subsidy, PMFME scheme, and MSME term loans.

कोल्ड स्टोरेज व्यवसाय के लिए प्रोजेक्ट रिपोर्ट

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About This Scheme

India wastes an estimated ₹90,000 crore of agricultural produce annually due to inadequate cold chain infrastructure. The government has prioritised cold storage development through NABARD Capital Investment Subsidy Scheme (CISS), PM Formalisation of Micro Food Enterprises (PMFME) scheme, National Horticulture Board (NHB) subsidies, and APEDA support for export-linked cold chains. A small cold storage unit (50–200 MT capacity) costs ₹30–80 lakh; a medium warehouse (500–1,000 MT) costs ₹1–4 crore. The project report is critical for accessing subsidy-linked finance from NABARD, NHB, and PSBs.

35–50%
NABARD Subsidy
35% Cost
NHB Subsidy
Up to ₹5Cr
MSME Loan
50–2,000 MT
Typical Capacity

What Your Report Includes

Every report is formatted to the exact standards required by Indian banks and government departments.

  • Executive Summary with scheme-specific highlights
  • Promoter profile & KYC details
  • Business description & market analysis
  • Machinery & equipment list with quotations
  • Raw material & manpower planning
  • 5-year financial projections (P&L, Balance Sheet, Cash Flow)
  • CMA Data in IBA-approved format
  • Working Capital Assessment — Tandon Method II (RBI norms)
  • Loan repayment schedule with DSCR ≥ 1.25
  • SWOT analysis
  • Declarations & undertakings as per scheme guidelines

Eligibility Checklist

  • Individual farmer, FPO (Farmer Producer Organisation), cooperative, or private company
  • Proposed site in agriculture/industrial zone — must have electricity connection (HT/LT) for refrigeration
  • For NABARD CISS: project cost above ₹30 lakh; subsidy up to ₹4 crore
  • For NHB scheme: horticulture produce cold storage; minimum capacity 5,000 cubic metres
  • For PMFME: existing micro food enterprise upgrading cold storage capacity
  • MSME/Udyam registration for loans above ₹10 lakh
  • No existing loan default; CIBIL/CMR score in acceptable range
Export formats
PDF (A4)
Free: branded/watermarked
Word (.docx)
Paid plans
Excel (.xlsx)
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Why Use Cred for This Report?

Cold storage-specific project cost: land, civil construction (insulated building), refrigeration plant, compressors, condensers, generators, and grading equipment

Revenue model: storage rental (₹/MT/month), value-added services (grading, packing), and temperature-controlled transport

NABARD Capital Investment Subsidy (35% general, 50% NE/hilly states) reflected in means of finance

Capacity utilisation projections: 40% Year 1 to 80% Year 4 — realistic ramp-up for agri-storage

Operating cost model: electricity (60% of total OpEx), labour, maintenance, insurance

DSCR ≥ 1.25 maintained — required for NABARD-refinanced bank loans

Covers potato, onion, fruit, vegetable, dairy, pharmaceutical, and multi-commodity storage models

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Frequently Asked Questions

How much does it cost to set up a cold storage unit in India?

A small single-chamber cold storage (50 MT capacity) costs ₹25–40 lakh: civil construction ₹10–15L, refrigeration plant ₹10–15L, electrical ₹3–5L, and working capital ₹3–5L. A medium cold storage (500 MT) costs ₹1–2.5 crore. A large multi-commodity warehouse (2,000+ MT) costs ₹4–15 crore. Government subsidies (NABARD 35–50%, NHB 35%) significantly reduce effective cost.

What government subsidies are available for cold storage?

NABARD CISS: 35% subsidy (50% for NE/hilly states) on project cost for cold chain infrastructure including pre-cooling, storage, and refrigerated transport. NHB (National Horticulture Board): 35% subsidy for horticulture cold storage. AIF (Agriculture Infrastructure Fund): interest subvention + credit guarantee for cold chain projects. PMFME: 35% credit-linked subsidy for micro food enterprises adding cold storage. APEDA: support for export-linked cold chains.

What is the typical rental income from cold storage?

Cold storage rental rates in India vary by location and commodity: potato storage ₹120–180/quintal/season (6 months), onion ₹150–250/MT/month, horticulture ₹200–350/MT/month, pharmaceutical storage ₹500–1,500/MT/month. A 500 MT cold storage at 70% occupancy earning ₹250/MT/month generates ₹8.75 lakh/month in storage rental revenue.

Is electricity a major cost for cold storage?

Yes. Electricity accounts for 55–65% of total operating cost for a cold storage. A 500 MT cold storage typically consumes 15,000–25,000 kWh/month. At commercial tariff of ₹8–10/unit, monthly electricity cost is ₹1.2–2.5 lakh. Solar power integration (with or without battery storage) can reduce electricity costs by 30–40% and is increasingly included in cold storage project reports.

Can an individual farmer get NABARD subsidy for cold storage?

Yes. Individual farmers, FPOs, Self Help Groups, cooperatives, and private companies are all eligible for NABARD Capital Investment Subsidy for cold chain infrastructure. The loan is taken from a NABARD-empanelled bank (any PSB or cooperative bank), and NABARD releases the subsidy directly into the loan account after verification. The bank submits the project report to NABARD for subsidy approval.

How long does it take to get a cold storage loan approved?

With a complete project report and all documents (land ownership/lease, construction plan, machinery quotations, NABARD eligibility documents), PSBs typically process cold storage loans in 6–12 weeks. NABARD subsidy approval takes an additional 4–8 weeks after bank sanction. Having a professionally prepared project report aligned with NABARD/NHB formats is the single biggest factor in reducing processing time.

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