OBJECTIVE

The objective of the scheme is to provide equity type support to entrepreneurs in the form of capital subsidy for setting-up new Cold Storage / Expansion / Modernization for Horticulture purpose irrespective of location

ELIGIBILITY CRITERIA

a. The Cold Storages who has started its construction  activities after April, 1999 shall be eligible under the scheme.

b. The Cost of Project for a new Cold Storage would not exceed to Rs. 2.00 Crore.

c.  The cost of land should not exceed 10 % of cost of   
 project.

d. Preference shall be given to the Cold Storages for multi chamber/ multi product concept and shifting from diffuser system to Gravity Cooling System

EXTENT OF SUBSIDY

Under the scheme, back-ended Capital Investment Subsidy is provided to the eligible organization at 25% of the project cost not exceeding Rs. 50.00 per project for the new Cold Storage. In case of modernization of existing cold storages for potato subsidy @ 1000 per Tonne of Storage capacity shall be available and @ Rs. 2,000/- per Tonne for the Cold Storages meant for Onion Storage.

DEBT EQUITY RATIO

For financing to a cold storage there is no restriction from NHB with regard to Debt Equity Ratio. In other words Corporation can finance to any cold storage at 1:1 D/E ratio and subsidy quantum is to be calculated @ 25% of cost of project.

PATTERN OF ASSISTANCE

1.  50% of the subsidy would be released to the lending financial institutions after loan is sanctioned and 50% of the loan disbursed and remaining 50% on completion of the project after inspection of the Cold Storage by the Team of Officers of NHB ETC.

2.  Subsidy released by NHB to the financial institutions shall be adjusted towards loan account of the borrower after adjustment of Term Loan Component.

RATE OF INTEREST

 The rate of interest as applicable to SSI Units shall  be applicable on term loan assistance which varies  from 14% - 15% depending on Credit Rating of the case. For A&B+ category, the rate of interest shall be 14% and for other category @ 15%. However, no interest is chargeable on subsidy portion. 

MODUS OPRENDI FOR AVAILING THE SUBSIDY AMOUNT FROM NATIONAL HORTICULTURE BOARD, LUCKNOW/ GURGAON

Soon after disbursement of loan to the extent of 50%, the information on enclosed Annexure-III (of operational guidelines of NHB) are to the submitted to NHB along with a copy of Appraisal Note, Building Map, Copy of Bills for Plant & Machines, a Certificate regarding investment towards cold storages along with C.A. Certificate in support of investment, soil and water testing report for cold storages site. On receipt of first installment (50%) of subsidy amount, the same shall have to be kept in a separate account. When the cold storage is complete and ready for operation, a joint inspection of the unit shall be carried-out by the Officers of NHB and on their satisfaction, last installment of subsidy amount (balance 50%) shall be released to the lending institution and total subsidy amount is to be adjusted against the borrower’s loan account after repayment of Term Loan installments.