Scheme for Cold Chain, Value Addition and Preservation Infrastructure 13th November, 2013 Ministry of Food Processing Industries Government of India

MINISTRY OF FOOD PROCESSING INDUSTRIES WELCOMES THE PROMOTERS OF NEWLY APPROVED COLD CHAIN PROJECTS

Scheme for Cold Chain, Value Addition and Preservation Infrastructure To develop integrated cold chain and preservation infrastructure, MoFPI launched cold chain scheme in 2008. Objective To provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the Consumer. To enable linking groups of producers to the processors and market through well equipped supply chain To establish value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc.

Scheme for Cold Chain, Value Addition and Preservation Infrastructure Eligible Project Components: Minimal processing Centre at the farm with facilities such as weighing, sorting, grading waxing, packing, pre-cooling, Controlled Atmosphere (CA) / Modified Atmosphere (MA) cold Storage, normal storage and IQF. Mobile pre-cooling vans and reefer trucks. Distribution hubs with multi product and multi CA/MA chambers, cold storage/ Variable Humidity Chambers, Packing facility, CIP Fog treatment, IQF and blast freezing. Irradiation facility To avail financial assistance, any two of the components, from (a), (b) or (c) above will have to be set-up Irradiation facility is treated as a stand alone one for the purpose of availing grant.

Release of Funds 1st installment of 25% of the total grant 25% of the promoter’s contribution and 25% of the term loan has been spent on the project. 2nd installment of another 50% of the total grant Utilization of first installment of grant. 75% of promoter’s contribution and 75% of term loan have been spent on the project. 3rd and final installment of remaining 25% of the grant Utilization of the second installment. 100% of promoters contribution and 100% of term loan has been invested on the project Project has achieved completion and commercial operation has started.

Timelines Submission of acceptance to the terms & conditions of the approval letter – 1 Month Submission for documents for the release of 1st installment of grant – 9 months Completion of project – 18 months

Documents Requirements for Release of Installments

Statutory Permissions/ Licenses/ Clearances, etc. Required Change Land Use (CLU) permission Consent to establish from Pollution Control Board NoC/ Approval from Town and Country Planning Department/ concerned civil authority for building plans Consent to operate from Pollution Control Board Registration with FSSAI, Warehousing Development & Regulatory Authority (WDRA),etc. Permission for ground water use, if required Sanction of electrical connection and water connection from competent authority Any other license, permission, etc., as applicable The applicants are advised to apply/ get the above approvals simultaneously during the implementation period to avoid delay in release of grant

Most Common Deficiencies/ Errors in Grant Requisition Documents

Most Common Deficiencies/ Errors 1st Grant Installment Requisition Surety Bond: Incorrect grant amount and lack of details on approved locations, components and Capacities . Confirmation of facilities should be added as annexure. Board Resolution as annexure should have a specimen signature of the authorized signatory Incorrect language of affidavit confirming that the proposed project had not started commercial production / operation prior to the date of submission of application. It should also be duly notarized. Incorrect CGA Registration - Controller General of Accounts (CGA) registration should have agency type “private sector companies” and scheme name “Scheme for infrastructure development FPI (0386)”

Most Common Deficiencies/ Errors Incorrect CA Certificate: Photocopy of CA Certificate. Original is required. Incorrect approved/ appraised project cost details Incorrect approved/ appraised means of finance Details of cost of P&M/ TCW not matching with that given in the CE (Civil ) or CE(Mechanical) Certificates Advance payments made not indicated separately Certificates not countersigned by the promoter Insufficient mention of due diligence done for the project cost verification such as verification of books of accounts, bills, invoices, etc.

Most Common Deficiencies/ Errors Incorrect CE (Civil) Certificate for Civil Work: Photocopy of CE (Civil) Certificate. Original is required. Certificate from Architect instead of CE (Civil) Approved/ appraised item wise TCW dimensions and cost details not given Incorrect approved/ appraised item wise TCW dimensions and cost details Details of cost of TCW not matching with that given in the CA Certificate Actual item wise progress/ specifications/ quantity not shown in the certificate Advance payments made not indicated separately No comments on the quality of the civil work and names of suppliers, etc. Not countersigned by the promoter

Most Common Deficiencies/ Errors Incorrect CE (Mechanical) Certificate for P&M: Photocopy of CE (Mechanical) Certificate. Original is required. Approved/ appraised item wise P&M specifications/ capacities and cost details not given Incorrect approved/ appraised item wise P&M specifications/ capacities and cost details Details of cost of P&M not matching with that given in the CA Certificate Actual item wise progress/ specifications/ quantity not shown in the certificate Advance payments made not indicated separately No comments on the quality of the P&M and names of manufacturers, suppliers, etc. Not countersigned by the promoter

Most Common Deficiencies/ Errors Details of unsecured loan (along with PAN numbers of lenders: Not certified by CA PAN Numbers of lenders not mentioned Not countersigned by the promoter Bank Certificate and Consent Letter: Mismatch of disbursed amount from that mentioned in the means of finance of CA certificate Recommendation/ consent not given by Bank for disbursement of grant through the bank account Not providing details of Current Account of the applicant where the grant is to be transferred. Term loan account given as the desired account for grant transfer

Most Common Deficiencies/ Errors Land Documents: Required for the main locations/ (s) before the release of 1st installment of grant Non notarized or photocopy of notarized land documents submitted English version not submitted Lease period less than 15 years Many times CLU not submitted Bank Statements & Receipts, in case of advance payments: Bank statement does not indicate the name of the suppliers, etc. Payments are also not highlighted. Index/List of invoices including amount and supplier names not included. Format of GFR 209-(1) for regarding receipt of grant: Incorrect language/ format used Non notarized affidavit submitted

Most Common Deficiencies/ Errors Undertaking to meet gap in means of finance: Not submitted on non-judicial stamp paper of not less than Rs. 100/- Non notarized affidavit submitted

Most Common Deficiencies/ Errors 2nd Grant Installment Requisition CA , CE Certificates and Bank Certificates: Same as 1st installment of grant Utilization Certificate of the 1St Installment of the grant: Wrong format used (instead of GFR 19-A) Not countersigned by promoter Incorrect approval letter number and figures given Land Documents: Documents for atleast 75% of the locations of Collection Centres/ BMCs/ distribution outlets to be submitted Same issues as the land documents of the main facility(s) during the release of 1st installment of grant

Most Common Deficiencies/ Errors 2nd Grant Installment Requisition Bank statements showing payment made to suppliers/ vendors: Bank statement does not indicate the name of the suppliers, etc. Payments are also not highlighted. Invoices/receipts from the suppliers/vendors: Index/List of invoices including amount and supplier names not included.

Most Common Deficiencies/ Errors 3rd Grant Installment Requisition CA , CE Certificates and Bank Certificates: Same as 1st & 2nd installments of grant Utilization Certificate of the 1St Installment of the grant: Same as 2nd installment of grant Land Documents: Documents for remaining 25% of the locations of Collection Centres/ BMCs/ distribution outlets to be submitted Same issues as the land documents of the main facility(s) during the release of 1st installment of grant

Most Common Deficiencies/ Errors Letter confirming commencement of commercial operation by the project Date of commencement of commercial operation not mentioned Statutory licenses / clearances as mentioned earlier Many times statutory licenses/ clearances not submitted Sometimes the applicant applies for the same only after direction from the Ministry which causes delay Expired/ invalid documents are submitted

Most Common Deficiencies/ Errors Bank statements showing payment made to suppliers/ vendors: Same as 2nd installment of grant Invoices/receipts from the suppliers/vendors:

In case of Changes in Project components In case of change in project cost, means of finance, facilities/ capacities, land/locations, constitution of the applicant entity, etc. Prior approval from the Ministry needs to be obtained Before seeking approval from the Ministry, the changes should be endorsed by the lending bank Justification for the changes should also be submitted to the Ministry In case of change in project cost or facilities/ capacities, comparative item wise cost breakup for approved components/ costs (both TCW and P&M) and the revised components/ costs (both TCW and P&M) should be submitted duly certified by the bank

In case of Changes in Project components…contd. In case of change of Bank, project appraisal report from the new bank should be submitted. In case of change in means of finance, the bank must endorse it with the statement that viability of the project is not affected. Pl. note that in case of changes in the project components, grant shall not be given for any new components added. However if the capacities of approved facilities are reduced or the approved components are dropped, the grants approved against that component shall be reduced or withdrawn.

What is expected of the promoter(s) Timely implementation of the approved project Timely & properly submission of documents for release of grants. Keep the ministry updated about change in contact details, project components, bank, etc. Timely submission of status report, details, clarifications, documents asked for. Attending the review meetings called by the ministry. Promptly responding the letters, email, and phone calls from the ministry

Thank You!