Integrated Cold Chain

Integrated Cold Chain & Value Addition Infrastructure (ICC) - Central Govt (MoFPI)
EoI – Deadline for filing Initial (First) Application
Sl No Particulars Remarks
01 Scheme Name Integrated Cold Chain & Value Addition Infrastructure (ICC)
02 Who are Eligible Interested Promoters / Investors willing to set-up Infrastructure Projects in Food Processing Sector / Segment.
03 When to Apply From 10:00 AM of 09-10-2023 to 05:00 PM of 15-12-2023 (68 Days)
04 Last Date to Apply (Cut-off Date) On or before 05:00 PM on 15-12-2023
05 Govt. Fee (Non-Refundable) General Category - ₹ 20,000/-
06 Mode of Govt Fee A Demand Draft (DD) to be submitted in favour of "Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi".
07 Mandatory Condition of submission of original DD (Cut-off Date) to Ministry It should reach Ministry not later than 7 Days after Last Date of Submission of Application – 15-12-2023.

Central Food Ministry (MoFPI) - ICC - Unit Caps / Budgeting
(Integrated Cold Chain & Value Addition Infrastructure (ICC) Subsidy)
Sl No Particulars Inputs
01 Scheme Announced on (Revised Guidelines) 08-06-2022
02 Scheme Period 2021-22 to 2025-26 (5 Years)
03 Cut-off Date - Application Submission 09-10-2023 to 15-12-2023 (68 Days)
04 Major Criteria's No Civil Work, No Machinery Purchase, No Advances to Suppliers / Contractors before Ministry Approval.
05 Minimum Approval Time required by Ministry to Sanction Project 3 Months 15 Days
06 No of Applications / Unit Cap - Entire Policy Period (2021-22 to 2025-26) 30 ICC’s with a Budget of ₹ 180 Crore for 5 years
07 Unit allocations per Year 6 Units for 2023-24

Note - There are 50-50 chances for consideration of additional Units / Proposals


Integrated Cold Chain & Value Addition Infrastructure – Central Govt (MoFPI)
Snapshot (Guidelines)
Sl No Particulars Inputs
01 Scheme Effective Date 08-06-2022
02 Project Location Any Location in India.
03 Subsidy Rate 35% (Gen) and 50% (NER / SC / ST / ITDP Areas) on Eligible Project Cost (Technical Civil Work + Eligible P&M excluding GST) with a cap of ₹ 10 Cr, whichever is lower.
04 Instalments 3 Equal Instalments (1/3rd of Grants-in Aid each)
05 Submission of 1st Instalment Documents - Cut-off Date & Stage Submit documents after confirming expenditure of 1/3rd of Eligible Project Cost, but within 8 months (Gen) / 10 months (SC / ST) from the date of “Ministry Approval”.
06 1st Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 1st Installment Documents.
07 Release of 1st Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 1st Instalment will be released in 1 month (approx.), subject to the availability of funds.
08 Submission of 2nd Instalment Documents - Cut-off Date & Stage Submit documents after spending expenditure to the extent of 2/3rd (67%) of “Eligible Project Cost”, 50% of TL & item-wise progress on approved components, but within 16 months (Gen) / 20 months (SC / ST) from the date of “Ministry Approval”.
09 2nd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 2nd Instalment Documents.
10 Release of 2nd Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 2nd Instalment will be released in 1 month (approx.), subject to the availability of funds.
11 Submission of 3rd Instalment Documents - Cut-off Date & Stage Submit documents after 100% utilization of “Promoter Contribution (Equity)” & “Term Loan (TL)”, but within 24 months (Gen) / 30 months (SC / ST) from the date of “Ministry Approval”.
12 3rd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 3rd Instalment Documents.
13 Release of 3rd Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 3rd Instalment will be released in 1 month (approx.), subject to the availability of funds.
14 Subsidy Fund Utilization Subsidy will be kept in Grant-In-Aid Account and can be utilized for payments to “Vendors / Contractors” related to Project while its implementation.

Integrated Cold Chain & Value Addition Infrastructure (ICC) – Central Govt (MoFPI)
Eligible Criteria’s
Sl No Particulars Inputs
01 Land Should be in the name of Applicant. If “Lease Land”, then15 years “Lease Period” duly registered is required.
02 Term Loan (TL) TL Date should be after Expression of Interest (EoI) Date. Minimum TL Value should be 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
03 Equity (Own Contribution) At least 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
04 Net worth (Combined) Should be 1.5 times of Grant-in-Aid for General (or) 10% of Grant-in-Aid for SC / ST (or) at least equal to Subsidy Amount for NER.
05 Eligible Project Cost Eligible Project Cost (Technical Civil + Machinery Cost excluding GST Value) as per Annexure-I.
06 Restrictions One application from an entity will be considered. An entity will include all Members / Relatives of the Promoter.
07 Investment Made prior to Ministry Approval Will not be considered as “Eligible Project Cost” to calculate Subsidy Amount.
08 Refundable Bank Guarantee (BG) 5% BG on “Eligible Subsidy Amount” should execute on receipt of Ministry Approval Letter, but within 30 days from the date of Ministry Approval. BG will be released on successful implementation of Project, but after receipt of 3rd Instalment of Subsidy Amount.
09 Stage of TL Disbursement After getting Ministry Approval, Bank can disburse TL Amount. Thereafter only Project Civil Work, Purchase of Machinery and Advance to Vendors & Contractors can be started / made.
10 Minimum 3 Bank Accounts 1 Current Account, 1 Term Loan Account & 1 Subsidy Account to be maintained by the Applicant.
11 Evaluation Marks As per the “Ministry Evaluation Chart,” a minimum of 60 marks for General & 45 Marks for NER / SC / ST / ITDP is required to secure / achieve to make Project Eligible.
12 Project Completion General Areas - Within 30 months (Original 24 Months + 6 Months Extension). Difficult Areas (NER / SC / ST) - Within 36 months (Original 30 Months + 6 Months Extension) from the date of Ministry Approval including an extended period.
13 Mandatory Machinery Mfg. Details on each Machine Supplier is required to affix or rivet Manufacturing Plate on each Machine duly mentioning Unique Machine No, Month & Year of Manufacture.
List of Eligible / Ineligible Components for Calculation of Subsidy
Major Heads of Cold Chain Components
Sl No Particulars
01 Farm Level Infrastructure (FLI), which may include a Processing Centre, situated in the catchment area of the targeted produce. Location of FLI must mandatorily be indicated in the DPR as well as Bank Appraisal Note.
02 Processing Centre (Mandatory Component) - Indicative List as per Annexure-I
03 Distribution Hub - This shall have a modern multi-product, multi-temperature cold storage. It may also include one or more of the facilities mentioned in Annexure-I below depending upon the business plan of the project.
04 Refrigerated Vans / Refrigerated Trucks / Insulated Vans / Mobile Insulated Tankers.
04 Irradiation Facility - This may be a standalone component. Irradiation Facility may also include Cold Storage, Grading & Sorting Facilities, Reefer Vans for storage and transportation of raw material and finished products for efficient utilization of the facility. For the Irradiation Projects, Fruit & Vegetable Sector would also be an eligible Sector.

Annexure-I

I) Eligible Components

Sl No Eligible Components
01 Mechanized Sorting & Grading Line / Packing Line / Staging Cold Rooms.
02 Cold Storage Units (Associated with value addition)
03 Controlled Atmosphere (CA) Storage (Associated with value addition)
04 Frozen Storage / Deep Freezers (Associated with value addition)
05 IQF Line, Tunnel / Spiral / Blast / Plate Freezer, Vacuum Freeze Drying
06 Milk Chilling / Bulk Milk Cooling / Automatic Milk Collection Unit / Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing.
Note : Maximum 10 Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit can be assisted per project .
07 Poultry / Meat / Marine / Fishery Processing Unit
08 Packaging Line for Chilled / Frozen / Temperature-Controlled Products
09 Food Irradiation Unit
10 Refrigerated / Insulated Transport
11 Pre-Cooling Units / Mobile Pre-Coolers
12 Retail Refrigerated Carts, Temperature Controlled Solar Powered Retail Carts.
Note : Maximum 5 such Carts can be considered per project
13 Reefer Boats.
Note : Maximum 5 such Boats can be considered per project
14 Refrigerated Containers including Multi-Modal Container Units
15 Renewable / Alternate Energy Technologies (Solar, Bio-Mass, Wind, etc.) for the project.
Note : Maximum permissible cost is ₹ 35 lakh per project.
16 Accessories / Support Infrastructure / Utilities such as Fixed Racking System in Cold / CA Storage, Forklifts, Reach Trucks, Insulated Fish Boxes, Dock Levellers, Mezzanine Flooring, ETP, Boiler, CIP Unit, Slicer / Dicer, Sorting / Grading Line, etc.
Note : CA Storage should be located near production areas. Otherwise, detailed justification to be given in the DPR.
17 In-house product Testing Laboratory
18 Any other Modern Technology for Temperature-Controlled Storage, Processing, Value Addition & Preservation Infrastructure.
19 Toilets, Septic Tank, Drainage & such other facilities.

II) Ineligible Components
Sl No Ineligible Components
01 Compound Wall
02 Approach Road / Internal Roads
03 Cost of Land & Site Development
04 Administrative Office Building
05 Canteen
06 Labour Rest Room & Quarters for workers
07 Security / Guard Room or Enclosure
08 Non-Technical Civil Works not related to the components of the scheme
09 Margin Money, Working Capital & Contingencies
10 Fuel, Consumables, Spares & Stores
11 Transport Vehicles other than Controlled Temperature Vehicles
12 Pre-operative expenses
13 Service Charges, Carriage & Freight Charges or other such Charges / Fees
14 Expenditure on Painting of Machinery
15 AC Ducting, Furniture, Computers & Allied Office Items
16 Closed Circuit TV Camera & Security System related Equipment
17 Consultancy Fee, Taxes, etc. on Plant & Machinery
18 Stationery Items
19 Plant & Machinery not directly related to components of the scheme
20 Fly Catchers, Hand Washer, Laundry
21 Reconditioned / Refurbished / Second Hand / Old Plant & Machinery
22 Consumables such as Plastic Crates, Bins, Pallets, etc

Central Food Ministry (MoFPI) - Application Process Timelines
(Integrated Cold Chain & Value Addition Infrastructure Subsidy)
Sl No Head Timelines (TAT)
01 Application - Starting Date 09-10-2023
02 Application - Submission Last Date 15-12-2023
03 Total days available for submission of Application 68 Days
04 Time required for considering the case by Technical Scrutiny Committee (TSC) by Ministry. 30 Days
05 Time required for further consideration of proposal for IMAC once TSC approved. 15 Days
06 Time required to get Approval / Sanction form Ministry after IMAC Decision. 15 Days
07 Total time required to get Approval 3 Months 15 Days

Check List (ICC) - Initial Application
Sl No Particulars
01 Detailed Project Report (DPR) as per Appendix-2
1.1 Indicating Financial and Technical profile of the Entity
1.2 Domain Expertise available with the Entity
1.3 Raw material availability in the area where project is proposed to be set up
1.4 Arrangements for procurement of Raw material
1.5 Marketing Strategy of proposed products
1.6 Process Flow Diagram of proposed products with production capacity per day
1.7 Technology proposed for various activities in process line
1.8 Financial estimates with Key Financial Parameters
1.9 Profit and Loss Statement
1.10 Estimated Employment Generation from the Project (Direct as well as Indirect)
1.11 Number of Farmers estimated to be benefited etc
02 A detailed Appraisal Note, specific to the scheme, from a Scheduled Commercial Bank
03 Bio-data / Background / Experience of the entity relevant to the scheme.
04 In-Principle / Final Term Loan sanction from a Bank
05 Certificate of Incorporation / Registration, Memorandum & Article of Association, Bye-laws, Partnership Deed
06 Company PAN Card, TAN Card
07 SC / ST Caste Certificate (If applicable)
08 Registered Sale Deed / Lease deed (Lease Period 15 years) - English Version
09 Quotations (which include ITC (HS) Code, Product Description, Quantity, Basic Cost, GST) from Original Equipment Manufacturer or its Authorised Dealer / Supplier
10 Net worth Certificate by CA (Appendix-1)
11 CA / Statutory Auditor Certificate (Appendix - 3)
12 Charter Engineer Certificate (Civil) (Appendix - 4)
13 Charter Engineer Certificate (Mechanical) (Appendix - 5)
14 Proof of submission of Fee (DD Date)

Note
01 All above documents must be submitted through online duly Self-attested.
02 Land in the name of Applicant. CLU Available.
03 Proposal should contain an index as first page & all pages of documents must be properly numbered
FAQ'S FOR INTEGRATED COLD CHAIN AND VALUE ADDITION INFRASTRUCTURE
Sl No FAQ Clarification
01 Whether Fruit & Vegetable sector will be covered under Cold Chain Scheme? As per the scheme guidelines dated 08-06-2022 projects only for irradiation facility in respect of Fruit & Vegetable Sector is covered under cold chain scheme
02 Whether setting up of Farm Level Infrastructure (FU) is mandatory under the scheme? Yes
03 Whether setting up of standalone facilities of Para - 4.1 are allowed under the scheme? As per paragraph 43 of the scheme guioelines standalone facilities/ components except irradiation facility will not be considered for assistance under the scheme
04 Whether appraisal from the NBFC will be considered as eligible or not? No, Detailed Appraisal Note only from a Scheduled Commercial Bank will be considered as eligible
05 Whether term loan sanction and appraisal note from a Non-Scheduled Co-op Bank is allowed as it is also controlled by RBI? A detailed Appraisal Note (indicating all the financial parameters) of the proposal should be from a Scheduled Commercial Bank. However, term loan for the project can be availed from either from Scheduled Commercial Bank or a Government controlled financial institution or a Non-Banking Financial Company approved by RBI
06 How the proposals will be considered as ST / SC proposals? The proposals received from entities where Scheduled Caste (SC) / Scheduled Tribe (ST) hold at least 51% stake will be treated as SC / ST proposals
07 Is project proposed to be set up in State Notified ITDP (Integrated Tribal Development Projects) areas are eligible for grants in aid @50%? Project proposed to be set up in in ITDP (Integrated Tribal Development Projects areas notified by Ministry of Tribal Affairs Government of India are eligible for grants in aid @ 50% of eligible project cost subject to meeting other conditions of scheme guideline
08 Can a project be set up on turnkey basis? Yes, A project can be set up on a turnkey basis. However, invoices have to be from OEM or authorized dealers in the name of Project Implementation Agency
09 What would be the criteria for assessment of net worth for the commercial vehicles owned by the applicant? The net worth of the commercial vehicles owned by the applicant will be calculated based on the lnsured's Declared Value [IDV] mentioned in the valid insurance document of the concerned vehicle duly supported by valid Registration Certificate (RC) in the name of the applicant and the same should be uploaded as supporting document towards net worth.
10 Whether a proposal envisaging Foreign Direct Investment (FDI) be considered eligible under the scheme guidelines? Proposals envisaging FDI will be considered eligible under scheme guidelines provided they comply with all the extant rules and regulations issued by Government of India in this regard
11 Is it mandatory to have a registered lease deed for 15 years and CLU in case of facilities such as Bulk Milk Coolers, Chilling Centres & Collection Centres? Land ownership documents or Registered lease deed for a period not less than 15 years along with CLU is mandatory for the location(s) proposed for processing facilities In case of facilities such as BMCs chilling centres and collection centres where TCW is not envisaged CLU is not mandatory Copies of land ownership documents / registered lease / rent agreements for not less than 15 years as applicable will be required
12 Can one promoter simultaneously apply for same project under both the schemes viz. Cold Chain and CEFPPC unit scheme? Yes, However applicant has to withdraw from either of the schemes if proposal is approved in both the schemes
13 Is it necessary to have cold chain facilities also along with the Irradiation facility? The irradiation component will be treated as stand-alone facility for the purposes of grant However other facilities/ components as mentioned in the scheme guidelines may also be set up if detailed justification of business plan of the project is mentioned in the DPR duly indicated in the detailed appraisal note
14 In a dairy project where main facility for milk processing is aIready established whether grant can be applied for setting up of BMCs/ chilling centres and refrigerated/ insulated transport? No, Dairy project without main processing facility will not be considered under the scheme guidelines
15 Are skimmed milk powder, condensed milk and tetra pack projects eligible under this scheme for financial assistance? The projects envisaging the products such as skimmed milk powder and tetra pack products would not be considered eligible for financial assistance However for the products such as condensed milk vacuum freeze drying where frozen temperature is required during processing are eligible for financial assistance
16 Can the refrigerated containers be considered as cold storage under the scheme? No. In fact, refrigerated containers including multi-modal container units are rather part of the scheme guidelines
17 Are cold rooms established for mushroom cultivation eligible under the scheme? No, Neither cultivation activity nor standalone cold storage (such as a cold room) will be supported under the scheme. Only the components / facilities related to processing / value addition infrastructure involving cold technology with or without storage would be considered eligible
18 What should be the minimum distance between farm level infrastructure and distribution hub? While no minimum distance has been laid down it is for the applicant to provide detailed justification for the locations in the DPR. The Ministry will have the discretion to consider such cases keeping in view the spirit of the guidelines
19 Whether in the criteria for evaluation of cold chain proposals, experience of an activity other than cold chain and/or food processing business will be considered? No, The experience of only cold chain and/or food processing business will be considered for award of marks in the evaluation
20 Is there any capping on the capacity of the components proposed in a project? There is no capping but the capacities proposed should be justifiable as per the viability of project and availability of raw material
21 What constitutes a catchment area? A catchment area shall be considered as the region from where the applicant proposed to procure raw material either for storage purpose or for processing / value addition. The proposal will have to explain the catchment area duly supported by valid data from the Central / State Government
22 Can the applicant having processing line apply for a standalone cold storage? Setting up of standalone cold storage are not considered under the scheme
23 Is there any minimum capacity required for associated Frozen storage with IQF? No. However all the facilities proposed should be synchronized with each other
24 Can the cost of land be included in the total project cost and means of finance? No. The cost of land will not be considered for assessment of total project cost as well as means of finance In case the cost of land is included in the total project cost as well as means of finance then the amount for land will be deducted from the total project cost as well as proposed promoter's contribution and thereafter the minimum eligibility requirement as well as scoring will be assessed
25 Can net worth of directors be considered for estimating net worth in case of a newly constituted Pvt. Ltd. Company? In case of newly formed companies (except listed company) the net worth of the share-holders of the company would be considered in the same manner as in case of partnership firms
26 What is the definition of newly formed company for the purpose of availing financial assistance under the scheme? A company will be treated as newly formed, if it has been formed with the objective of food business and has not commenced commercial operations with reference to any business activity as on the date of submission of application. This should be supported by appraisal note and in such cases Balance Sheet / Financial Statement along with Memorandum of Association filed with the RoC for each year since incorporation will be required in support of proof of non-commencement of commercial operations
27 How the net worth of a newly formed company would be ascertained, if one of the promoter/ constituents of newly formed company is a corporate entity? ln case of new companies the net-worth of the promoter / shareholders will be considered in the same manner as in case of partnership firm. However if one of the constituent of the newly formed company is a corporate entity the net worth of the corporate entity will be assessed as per the scheme guidelines issued on 08-06-2022.
28 Is availing term loan mandatory from the Bank/ FIs in case of Govt. Entity? Yes. Term loan from the Bank (as defined in the guidelines) for an amount not less than 20% of the total project cost is mandatory in case of Government Entity also
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