Ministry of Food Processing Industries Prospects of Cold Chain Infrastructure in Eastern Region

Launched in FY with the underlying objectives : Scheme for Cold Chain, Value Addition and Preservation Infrastructure 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 of produce. To arrest Post Harvest Horticulture & Non Horticulture(Dairy, Marine,Meat etc) losses

 Minimal Processing Centre at farm level  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  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 above components, to be part of project Irradiation facility treated as a stand alone project Eligible Project Components

 50% of the Bank Appraised cost of Plant & Machinery and Technical Civil Work in General Areas  75% for NE Region and difficult areas( North Eastern States, Sikkim, J&K, Himachal Pradesh and Uttarakhand)  Subject to a maximum grant-in-aid of Rs. 10 crore per project Pattern of Assistance

Phase wise Implementation PhaseApproved Projects Under Implementation Completed Projects Phase 1 ( )100 Phase 2 ( ) Phase 3( ) Phase 4( )* 75*4908 Total * Including 11 cancelled and 05 unapproved projects from earlier phases

State wise Implementation Projects in Eastern Region RegionHortiDairyMeat and others Total No. of projects Assam Bihar-01-1 Chhattisgarh02--2 Jharkhand----- Odisha--01 ( Ready to Eat) 1 Eastern Uttar Pradesh* ---0 West Bengal07--7 Total * There are 06 project in Uttar Pradesh but none of them in Eastern Uttar Pradesh

EOI – wise Proposals Received/Approved EoI dated was specific to 08 uncovered states including Chhattisgarh, Jharkhand & Odisha. EoI dated was specific to N-E states EoI dated mentioned about special preference to states such as Odisha, Jharkhand, Bihar. EoI dateTotal Proposals received Proposals Received from ‘Eastern States’ Approved proposals from ‘Eastern States’ (for uncovered states) (for N-E states) Approval in progress

Cold Storage Gap StateCold Storage requirement [‘000 MT]* Present Capacity [‘000 MT]** Gap [‘000 MT] Assam2,3241, Bihar4,2411, Chhattisgarh Jharkhand Odisha1, West Bengal10,5565, Total20,2959, All India61,13031,82329,307 Eastern UPSeparate data not available * Source: National Spot Exchange data 2010 ** Source : Task Force Report(2014) Chaired by Secretary FPI

Cold Chain Capacity Created by MoFPI in Eastern India StateCold Storage/Controlled Atmosphere /Deep Freezer [MT] Individual Quick Freezing ( IQF) [MT/HR] Irradiatio n [MT/Hr] Reefer Vehicles [No.s] Milk Storage/Milk Processing [Litres Per Day] Assam8, Bihar12 1,30,000 Chhattisgarh8,50005 Jharkhand---- Odisha West Bengal50, Total68, ,30,000 Uttar Pradesh [all facilities in western UP] 16, ,00,000

 Deduction of Capital Expenditure up to 150% under Income Tax for Cold Chain and warehousing infrastructure;  Income Tax exemption on the profit from the business of processing, preservation and packaging of Fruits & Vegetables, Dairy, Marine, Poultry & Meat Products; 100% for 5 years and 25% for next 5 years;  Project imports for Food Product machineries at concessional custom duty;  Cold Chain and dairy machineries exempted from Excise Duty; Duty reduced for other FP & packaging machineries;  Nil or lower excise duty on Food Products.  Services pertaining to cold chain like pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables exempted from Service Tax as announced in the Union Budget FISCAL INCENTIVES FOR INVESTMENT IN COLD CHAIN

 Task Force set up by PMO under the chairmanship of Secretary, FPI on 2 nd Sept  Report dated 31 st October, 2014  Major Recommendations  Additional Cold Storage Capacity of 7.5 million tonnes over next five years with an allocation of Rs 6100 crore to be created together by NHB, NHM and MoFPI  MoFPI to create capacity of 2.5 million tonnes over next five years with an allocation of Rs 4000 crores  Scheme of Cold Chain of MoFPI may be made open ended  Grant component may be reduced from 75% to 50% of project cost for Special Category States and from 50% to 35% for other States, aligning pattern of assistance with the MIDH Recommendations of Task Force Chaired by Secretary, FPI

 Subject to approval, Ministry of Food Processing Industries proposes to:  Take up 500 Integrated Cold Chain projects as per the modified pattern of assistance during next five years to creat capacity of 2.5 million tonnes  Make the Scheme of Cold Chain Value Addition and Preservation Infrastructure open ended Way Forward

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