Capital Investment Subsidy scheme for Horticulture sector
The Capital Investment Subsidy Scheme for Construction/Expansion/Modernisation of Cold Storages and Storages for Horticulture Produce is administered by the National Horticulture Board (NHB), under the aegis of the Department of Agriculture & Farmers’ Welfare, Government of India. It was launched to promote post-harvest infrastructure for horticulture produce by incentivising cold storage and related storage units. The scheme’s purpose is to reduce post-harvest losses, strengthen the cold-chain infrastructure, and thereby support horticulture growers, entrepreneurs, startups and MSMEs in the storage of perishable produce. It provides capital investment subsidy (credit-linked, back-ended) for eligible projects of construction, expansion or modernisation of cold storage / storage for horticulture produce. The scheme is applicable across India (Pan-India) though subsidy rates differ by region.
Key Features
- Credit-linked, back-ended subsidy: Since the subsidy is linked to term-loan financing, it ensures financial discipline and viability of projects. Being back-ended means you as MSME will first set up the project, incur costs, draw the loan, and then once the project is commissioned and inspected, the subsidy is adjusted or released.
- Capacity thresholds & region-specific rates: Smaller capacity projects (up to ~5,000 MT) can apply through MIDH component, while larger ones (above 5,000 MT) are under NHB scheme. Locations in NE/Hilly/Scheduled areas get higher subsidy percentage recognising higher costs and greater need.
- Advanced storage technologies: The scheme is not just for conventional cold storages but emphasises modern features like multi-chamber design, humidity control, fin-coil cooling systems, CA/MA technology which help store multiple horticultural commodities more efficiently and reduce waste.
- Cost norms & unit cost ceilings: To maintain consistency and avoid inflated costs, NHB has prescribed maximum admissible cost norms per MT of capacity. These norms are indicative of upper limits for subsidy computation, and the project cost ought to be within such norms for eligibility.
- Time-bound completion of project: The “completion within x months” condition ensures that subsidy benefit is availed only for timely implemented projects and prevents delays or non-utilisation of infrastructure.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Individuals, farmers, agriculturists
- Proprietorship firms, partnerships, companies, LLPs
- FPOs, FPCs, cooperatives
- NGOs with relevant agricultural or post-harvest experience
- Startups in agri-infrastructure
- State agencies, PSUs, or registered institutions
- Applicants with:
- Clear land ownership/lease for 7–10 years
- A bank-appraised and technically compliant DPR
- Projects dedicated to construction, expansion, or modernization of horticulture cold storages
Who Cannot Apply:
- Applicants with a history of bank loan defaults or blacklisting
- Projects that primarily store non-horticulture products (e.g., dairy, meat, pharma)
- Individuals or companies lacking clear land records or mandatory approvals
- Foreign entities without registered presence in India
- Applicants with unresolved land or project-related litigation
- Projects that do not meet MIDH capacity, technical, or safety norms
Documents Required
- Aadhaar, PAN, Address Proof
- Entity registration documents (Partnership deed/Certificate of Incorporation)
- Land documents (ownership/lease deed)
- Approved building plan (if applicable)
- Detailed Project Report (DPR)
- Bank term loan sanction letter
- Net worth certificate
- Quotation for machinery and components
- CA-certified cost estimate
- Undertaking for horticulture-produce usage compliance
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply via the Official MIDH Process
- Prepare a Detailed Project Report (DPR) following MIDH norms.
- Obtain appraisal from a bank/financial institution for term loan sanction.
- Submit the DPR, bank sanction letter, land papers, and technical details to the State Horticulture Mission (SHM).
- SHM verifies documents, conducts site inspection, and forwards for approval.
- After approval, implement the project and submit completion documents.
- Subsidy is released through the bank after joint inspection.
Option 3: Apply through State Horticulture Department Portal (Where Available)
Some states (e.g., Maharashtra, Karnataka, Haryana) offer online submission:
- Register on the state horticulture portal.
- Upload DPR, KYC, land documents, and cost estimates.
- Track application status online.
- Attend inspections and comply with technical requirements.
- Receive subsidy post-verification.