PROJECT REPORT HOW TO ESTABLISH POTATO CHIPS UNIT IN RURAL AREA

KHADI & GRAMODYOG ROJGAR YOJNA PROJECT REPORT-
How to establish POTATO CHIPS/WAFER MANUFACTURING UNIT

Potato and Banana are the common vegetables used by the people in the country in
their daily life. The vegetables have its nutritive value. The wafers made out of potatoes
and bananas are considered as a delicious and tasteful and these items have secured a
considerable maket demand in India as well abroad.

1 Name of the Product : Potato Chips/Wafers

2 Project Cost :

a Capital Expenditure

Land : Own
Building Shed 500 Sq.ft : Rs. 100000.00
Equipment : Rs. 150000.00
Boiler,Steam Jacketted Kettle, Potato Peeling
Machine, Pouch Sealing Machine, Frying Pan
Total Capital Expenditure Rs. 250000.00

b Working Capital Rs. 88500.00

TOTAL PROJECT COST : Rs. 338500.00

3 Estimated Annual Production of Potato Chips/Wafers : (Value in ‘000)

 Potato Chips / Wafers--- 118 Q @ Rs 3000.0/Qut total Rs  354.00

4 Raw Material : Rs. 100000.00

5 Lables and Packing Material : Rs. 50000.00

6 Wages (Skilled & Unskilled) : Rs. 42000.00

7 Salaries : Rs. 60000.00

8 Administrative Expenses : Rs. 20000.00

9 Overheads : Rs. 30000.00

10 Miscellaneous Expenses : Rs. 5000.00

11 Depreciation : Rs. 20000.00

12 Insurance : Rs. 2500.00

13 Interest (As per the PLR)
a. C.E.Loan : Rs. 32500.00
b. W.C.Loan : Rs. 11505.00
Total Interest Rs. 44005.00

14 Working Capital Requirement :
Fixed Cost Rs. 120000.00
Variable Cost Rs. 233505.00
Requirement of WC per Cycle Rs. 88376.00

15 Estimated Cost Analysis
 Sr. Particulars Capacity Utilization(Rs in ‘000)

1 Fixed Cost                     120.50
2 Variable Cost                 234.00
3 Cost of Production         354.00
4 Projected Sales              450.0
5 Gross Surplus                96.0
6 Expected Net Surplus   76.0

Note :
1. All figures mentioned above are only indicative and may vary from place to place.
2. If the investment on Building is replaced by Rental then:
a. Total Cost of Project will be reduced.
b. Profitability will be increased.
c. Interest on C.E.will be reduced.

GOVERNMENT SUBSIDY ON SOLAR POWER COLD STORAGE

Solar Power Cold storage Establishment

Ministry of New and Renewable Energy has extended its subsidy scheme to solar refrigeration units as well. Most solar powered items, including solar lamps and solar heating systems, enjoy a 30% subsidy under different MNRE programmes.

Costing around Rs 30-40 lakh, they are manufactured by a handful of private companies such as Ecozen Solutions and Promethean Power Systems. They mostly use phase change material as insulation to trap solar energy for refrigeration purposes, along with battery backup. The shelf life of solar cold storages is around 15 years. Conventional cold storages cost half that of solar-powered ones, but require grid power which comprises around 20-30% of their running cost. Solar cold storages not only remove this cost, but can also make a key difference in distant rural areas which are not yet electrified, or where power supply is poor.

Introduction:

India is the world's second largest producer of fruits and vegetables after China wherein 88.977 million metric tonnes of fruits and 162.887 million metric tonnes of vegetables were produced during the year 2013–14 (Indian Horticultural database 2014).  A large variety of fruits are grown in India, of which mainly banana (33.4%), mango (20.7%), citrus (12.5%), papaya (6.3%), guava (4.1%), grape (2.9%), apple (2.8%), sapota (2.0%), pomegranate (1.5%), litchi (0.7%), etc., are the major ones. Apart from these, fruits like papaya, pomegranate, sapota, jackfruit, and ber, in tropical and sub tropical groups and peach, pear, almond, walnut, apricot, and strawberry, in the temperate group are also grown in a sizeable area. A significant portion of perishable produce, such as fruits and vegetables goes waste due to post-harvest losses and poor and inadequate infrastructure for perishable products. The per capita availability of fruits and vegetables is quite low because of post-harvest losses which account for 20–30 per cent of the total production. Besides, a sizeable quantity of produce also deteriorates by the time it reaches the consumer. This is mainly because of the perishable nature of the produce which requires a cold chain arrangement to maintain the quality and extend the shelf-life, if it is not meant for consumption immediately after harvest. Most of the horticultural produce requires a cooling temperature between 0°C and 15°C for safe storage and transient purposes. In the absence of cold storage and related cold chain facilities, the farmers are forced to sell their produce  immediately after harvest which results in glut situations and low price realization. Cold chain infrastructure for fruits and vegetables can substantially improve storage quality and reduce wastage. Robust farm-to-retail cold chain solution is required to sustain the growing domestic and export demand. Thus, apart from the large cold storage chambers for long-term storage, cooling system are also required for on-farm or in production catchment for horticultural crops, so that the produce gets cooled in the cold storage room during short-term storage and at the same time, it can be loaded in the transportation vehicle in cool conditions to reduce wastage during transportation.
Energy expenses account for about 28–30 per cent of total expenses in cold storage in India. Hence, electrical energy is a major running cost to maintain the cold storage facility. Moreover, grid power supply in the rural areas is very poor with respect to its quantity and quality. Solar power is the one of best solutions for operating small cold storage system in rural areas. Running cost of the cold storage system can also be reduced with solar power source. Solar energy-based refrigeration system is quite relevant to India because it is blessed with a good amount of solar energy in most parts of the country, throughout the year. The mean annual solar radiation is 4.6–6.6 kWh/m2/day in different parts of India.

Solar PV Powered Cold Storage System:

A cold storage facility for storage of fresh horticultural produce (6–8 tonnes), powered by solar photovoltaic with battery backup has been developed at CIAE, Bhopal. The puff insulated walk-in type cold storage chamber (L×B×H, m: 5×4.4×3) was constructed and fitted with a vapour compression refrigeration system (2.5 TR capacity) and a humidifier. Temperature and relative humidity (RH) controllers were fitted in the cold storage chamber to maintain desired room temperature (5–25°C) and relative humidity (65–95 per cent) for storage of horticultural produce. For operation of the cold storage unit, solar photovoltaic (PV) power plant (about 20 kWp SPV panel capacity) and minimum battery backup (240V, 400–450 AH) are equired.The battery backup is provided to store solar power generated during the day and supply power during night and cloudy weather. The tubular lead acid solar batteries are used for storage of power off-sun shine operation. Energy output from the solar panel plant would be 70–110 kWh/day which is sufficient to operate the cold storage unit. The power conditioning unit/inverter of the solar power plant converts the DC power produced from the solar panel into three phase AC electricity for operating the cold storage unit and other utilities.

Shelf Life Study of Horticultural Crops in the Solar Powered Cold Storage:

The shelf life of the freshly matured unripe mango (Dashari varieties) was studied in the month of June by storing the mangoes in the cold storage chamber at 12±1°C temperature and 90±2% relative humidity (Picture 2). Based on the different physicochemical parameters, it was found that Dashari mangoes could be safely stored up to 15 days as compared to 4 days at ambient storage. The total soluble solid (TSS) of Dashari mango increased from initial values of 8.8 to 13.0 during the cold storage period. Loss in weight of Dashari mangoes was 3.1 per cent in cold storage as compared to 14.5 per cent in case of storage at ambient condition. Firmness of the mangoes decreased from 31.6 kgf to 9.7 kgf. Similarly, the shelf life of the tomato and capsicum increased upto 15 days and 21 days, respectively, in the cold storage as compared to 4–5 days at ambient storage.

Advantages of Solar PV Powered Cold Storage System:

The electrical energy required for operating cold storage system (6–8 tonne capacity) is 35–60 kWh/day in different seasons. In solar powered system, the required energy for cold storage  ill be met from solar PV power plant with battery bank and it can be grid independent. Therefore, cost towards grid electrical energy will be saved for operating the system. The solar powered cold storage unit can also be installed in rural and remote areas where there is either no grid supply or erratic power supply.

Maintenance of the System:

The maintenance required for operating the system was quite less. However, the solar panel needs to be cleaned weekly to derive maximum power. Similarly, the battery water level should be checked fortnightly and the water level should be topped up to maintain optimum battery performance. The expected life of the tubular solar batteries is 6–7 years for reputed make, such as Exide and Luminous, etc. The old battery may be replaced with new one after 6–7 years.
Cost-Economics of Solar PV Powered Cold Storage System
The economics of the solar powered system and saving the grid electricity was worked out. The cost of the solar powered cold storage system (6–8 tonne capacity) with 20 kWp solar power plant and battery backup (240V, 450 AH) will be about `20 lakh (with 15 per cent financial assistance on SPV panel from the Ministry of New and Renewable Energy). Expected working life of the whole system was taken as 15 years on the safer side. Replacement of the battery bank after seven years will cost about `3.5 lakh (taken as `0.50 lakh/year). The solar power would save about 16,500 kWh grid electricity per year, worth `115,000/year as running cost of the cold storage. The interest rate on fixed capital is taken as 10 per cent per year. The cost-economics of the solar powered system has been given below. Operating cost of the stored product in the cold storage was found to be about `2.00/kg/week. The payback period of the cold storage system was found to be 10 years.

Cost-economics of the solar PV powered cold storage system:

Cost of the system `2,000,000
Interest on fixed cost, % per annum 10
Working life, year 15
Junk value as @10% of the cost `20,000
Material to be handled per year (assuming 1 week storage at full capacity of 6 tonne),  onne/year    282
Cost-economics of the system
I. Annual fixed cost
Depreciation `120,000
Interest on fixed capital `100,000
Sub-total fixed cost, `/year `220,000
II. Annual variable/running cost
Annual maintenance cost for battery and other system, `/year 55,000
Labour charge, `/year (100 man days/year @ `200/man day) 20,000
Sub-total variable cost, `/year `75,000
Total operating cost (I +II), `/year `295,000
Operating cost for material storage per kg per week including profit @ `0.75/kg (considering yearly 282 tonne storage, `/kg 1.90 (1.16+0.75)
Break-even point, tonne/year 153
Pay-back period, years 9.4

BANK LOAN FOR POULTRY

For Poultry Loan from Banks

Establishment of small poultry (layer or broiler) units of 200 to 500 birds as subsidiary occupation by the farmers and agricultural labourers.

Individual registered partnership firms, limited companies and registered co-operative societies having necessary trained and technical personnel and management experts for running following

Commercial poultry units –
Establishment/ expansion of layer farm/ broiler farm
Establishment/ expansion of hatchery farm
Establishment/expansion of production-cum-processing units.

Eligibility-
Individual Farmers, Agricultural Labourers who are experienced/ trained in poultry management, Individual Registered Partnership Firms, Limited Companies, etc., are eligible for bank credit for large poultry units.

These units should have trained/ technically qualified personnel for running the unit.

Quantum of finance -
The amount of finance will depend upon the type and size of the poultry unit.

Security-

Principal/ Collateral
Loans upto Rs.1.00 lakh –
Hypothecation of live stocks & others
Loan limit above Rs.1.00 lakh -
Hypothecation of live stocks & others.
Equitable or Legal Mortgage or Deed of Declaration of land/ superstructure, as appropriate.
Suitable Third Party Guarantee 

GOVERNMENT SUBSIDY SCHEME FOR VERMI COMPOST UNIT WITH DAIRY FARM

Government Subsidy scheme for Vermi compost Unit with Dairy farm or Milch Animal farm.

Establishment of Vermi-Compost unit with dairy farm or milch animal farm.

Subsidy 

Per Unit Rs 0.20 lakhs maximum.

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs. 0.050 lakhs (Rs 0.073 lakhs for SC/ST farmers) or actual whichever is lower.

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY SCHEME FOR ESTABLISHMENT OF PRIVATE VETERINARY CLINIC

Government Subsidy scheme for Private Veterinary Clinic

Establishment of Private  Veterinary  Clinic 

Subsidy 

Per Unit Rs 2.6 lakhs maximum for mobile clinic and Rs 2.0 lakhs for stationery clinic

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.0.65-0.50 lakhs (Rs0.866-0.666 lakhs for SC/ST farmers) or actual whichever is lower.

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY FOR DAIRY MARKETING OUTLET OR DAIRY PARLOR UNIT

Government Subsidy scheme for dairy marketing Outlet or Dairy Parlor

Establishment of dairy marketing Outlet or Dairy Parlor

Subsidy 

Per Unit Rs 1.0 lakh maximum

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.0.25 lakhs (Rs0.33 lakhs for SC/ST farmers) or actual whichever is lower.

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY FOR ESTABLISH COLD STORAGE FACILITY FOR MILK & MILK PRODUCTS

Government Subsidy scheme for Cold storage facilities for Milk and Milk Products

Establishment Unit of Cold storage facilities for Milk and Milk Products

Subsidy 

Per Unit Rs 33.0 lakh maximum

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.8.25 lakhs (Rs11.0 lakhs for SC/ST farmers) or actual whichever is lower.

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY- PURCHASE OF MILK PRODUCTS( SWEETS) PROCESSING EQUIPMENT'S

Government Subsidy scheme on dairy processing equipment for manufacturing of indigenous milk products Sweets/Mithai

Establish Unit Purchase of dairy processing equipment for manufacturing of indigenous milk products Sweets/Methai

Subsidy 

Per Unit Rs 13.20 lakhs maximum

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.3.30 lakhs (Rs.4.40 lakhs for SC/ST farmers) or actual whichever is lower. 

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY ON DAIRY PRODUCT TRANSPIRATION FACILITIES AND COLD CHAIN

Government Subsidy scheme on Dairy product transportation facility and Cold chain Unit 

Establishment of dairy product transportation facility and Cold chain Unit 

Subsidy: 

Per Unit Rs 26.50 lakh maximum

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.6.625 lakhs (Rs8.830 lakhs for SC/ST farmers) or actual whichever is lower. 

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY SCHEME- MILKING MACHINE/BULK MILK COOLER UNIT

Government Subsidy scheme on milking machines /milk testers/bulk milk cooling units (upto 5000 ltr capacity)

Establish Unit Purchase-of milking machines /milk testers/bulk milk cooling units (upto 5000 lit capacity)

Subsidy 

Per Unit Rs 20.0 lakh maximum

25% of the project cost (33.33 % for SC -/ ST farmers) as back ended capital subsidy. subject to a ceiling of Rs.5.0 lakhs (Rs.6.67 lakhs for SC/ST farmers) or actual whichever is lower. 

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behalf of their members, Dairy Cooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lnstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY SCHEME- DAIRY UNIT PROJECT OF COWS AND BUFFALO'S

Government Subsidy scheme on dairy  units of Indigenous/ crossbred cows/ buffalos

Establishment of small dairy units with crossbred cows/ indigenous description milch cows like sahiwal, Red Sindhi, Gir, Rathi etc/ graded buffalos upto 10 animals. For SHGs, Cooperatives societies, Producer companies unit size will be 2-10 animals per member

Subsidy:

Subsidy Unit Cost Pattern of Assistance Rs 6.00 lakh for 10 animal unit - minimum unit size is 2 animals with an upper limit of 10 animals.

25% of the project cost (33.33 small dairy units with for 10 animal % for SC ,' ST farmers), as back ended capital subsidy. Subsidy shall be restricted on prorate basis to a maximum of 10 animals subject to a ceilling of Rs 15000 per animal or 20,000 for SC/ST farmers or or actual whichever is lower Beneficiaries may purchase animals of higher costs. 'however, the subsidy will be restricted to the above ceilling.

Eligible Beneficiaries:

i) Farmers, Individual Entrepreneurs and Groups of Unorganized and Organized Sector. Group of organized sector, includes Self-Help Groups on behal.f of their members, Dairy ooperative Societies, Milk unions on behalf of their members, Milk federation, Panchayati Raj lrlstitutions (PRls) etc.are eligible under the scheme.

ii) An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.  However, more than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.

iii) Priority shall be given to projects being implemented in a cluster mode covering dairy farmers/women in SHGs, Cooperatives and Producer Companies including creation of facilities of processing, value addition and marketing of milk produced in the cluster

Pattern of Assistance:

a) Back ended capital subsidy @ 25% of the project cost for general category and @ 33 % for St & SC farmers.
b) Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of  project cost minimum.

Financial Institutions: 
 Eligible for re-finance under the scheme.

a. Commercial Banks
b. Regional, Rural and urban Banks
C. State Cooperative Banks
a. State Cooperative Agriculture and Rural Development Banks: and
e. Such other institutions, which are eligible for refinance from NABARD  Linkage with credit

Sanction of project by banks (Financial Institutions):

 The entrepreneurs will prepare a project as per norms of the scheme and submit to the Bank for sanction of the project. The bank shall appraise the project as per the administrative approval issued by DADF from time to time and if found eligible, sanction the total outlay excluding the margin, as a bank loan. The loan amount shall be disbursed in suitable installments depending on the progress of the unit. After the disbursement of the first installment of the loan, the financial institution /bank shall apply to the concerned Regional Office of NABARD for sanction and release of subsidy amount.
All the financing banks shall be required to forward their subsidy claims through their controlling office to the concerned NABARD Regional Office within two months of disbursement of first installment of the bank loan.

Rate of lnterest : 

Applicable on the loan amount under the scheme Rate of interest on loans shall be as per banking guidelinies and the declared policy of the  concerned bank. The bank may charge interest on the entire loan amount, until the subsidy portion is received; and from the date of the receipt of the subsidy, interest shall be charged only on the effective bank loan portion i.e. bank loan minus subsidy.

Time limit for Completion of the project : 

Time limit for completion of the project (except for calf rearing units where disbursements are expected to continue upto two years) would be as envisaged under the project, subject to a maximum period of 9 months from the date of disbursement of the first installment of loan.
 This maximum period may be extended by 3 months in cases where justification provided by the beneficiary is found adequate by the financing bank.
ln case, the project is not completed within the stipulated period, benefit of subsidy will  not be available; the advance subsidy placed with the participating bank.

Security/Surety:

Security for availing the loan be as per the guidelines issued by RBI from time to time.  The beneficiary contribution of 10% shall not be required for loans less than Rs.1 Iakh or any amount as specified in the RBl guidelines, as revised from time to time

Repayment:

Repayment Period will vary between 3-7 years depending on the nature of the activity and cash flow. Moratorium/ Grace period may range from 3 to 6 months in case of dairy farms to 3 years for calf rearing units to be decided by the financing bank as per as needs of individual project.
The recovery of the loan will be based on the net loan amount only. Subsidy shall be adjusted by the concerns bank after the net bank loan (Bank loan minus subsidy) and interest thereon has been repaid.
Repayment Schedules shall be drawn on the total bank loan taken in a manner that the subsidy amount is adjusted after liquidation of the net bank loan (excluding subsidy).

Adjustment of subsidy: 

 Capital subsidy will be back ended (adjusted againist last few installments of repayment of the bank loan) with a minimum lock-in period of 3 years, and. shall be refunded if the account becomes a Non Performing Account (NPA).

GOVERNMENT SUBSIDY ON SOLAR POWER COLD STORAGE PROJECT

Government subsidies on Solar Power Cold storage Project: 

Ministry of New and Renewable Energy has extended its subsidy scheme to solar refrigeration units as well. Most solar powered items, including solar lamps and solar heating systems, enjoy a 30% subsidy under different MNRE programmes.

Cold Storage costing around Rs 30-40 lakh, they are manufactured by a handful of private companies such as Ecozen Solutions and Promethean Power Systems. They mostly use phase change material as insulation to trap solar energy for refrigeration purposes, along with battery backup. The shelf life of solar cold storages is around 15 years. Conventional cold storages cost half that of solar-powered ones, but require grid power which comprises around 20-30% of their running cost. Solar cold storages not only remove this cost, but can also make a key difference in distant rural areas which are not yet electrified, or where power supply is poor.


India is the world's second largest producer of fruits and vegetables after China wherein 88.977 million metric tonnes of fruits and 162.887 million metric tonnes of vegetables were produced during the year 2013–14 (Indian Horticultural database 2014).  A large variety of fruits are grown in India, of which mainly banana (33.4%), mango (20.7%), citrus (12.5%), papaya (6.3%), guava (4.1%), grape (2.9%), apple (2.8%), sapota (2.0%), pomegranate (1.5%), litchi (0.7%), etc., are the major ones. Apart from these, fruits like papaya, pomegranate, sapota, jackfruit, and ber, in tropical and sub tropical groups and peach, pear, almond, walnut, apricot, and strawberry, in the temperate group are also grown in a sizeable area.

A significant portion of perishable produce, such as fruits and vegetables goes waste due to post-harvest losses and poor and inadequate infrastructure for perishable products. The per capita availability of fruits and vegetables is quite low because of post-harvest losses which account for 20–30 per cent of the total production. Besides, a sizeable quantity of produce also deteriorates by the time it reaches the consumer. This is mainly because of the perishable nature of the produce which requires a cold chain arrangement to maintain the quality and extend the shelf-life, if it is not meant for consumption immediately after harvest.

Most of the horticultural produce requires a cooling temperature between 0°C and 15°C for safe storage and transient purposes. In the absence of cold storage and related cold chain facilities, the farmers are forced to sell their produce  immediately after harvest which results in glut situations and low price realization. Cold chain infrastructure for fruits and vegetables can substantially improve storage quality and reduce wastage. Robust farm-to-retail cold chain solution is required to sustain the growing domestic and export demand. Thus, apart from the large cold storage chambers for long-term storage, cooling system are also required for on-farm or in production catchment for horticultural crops, so that the produce gets cooled in the cold storage room during short-term storage and at the same time, it can be loaded in the transportation vehicle in cool conditions to reduce wastage during transportation.

Energy expenses account for about 28–30 per cent of total expenses in cold storage in India. Hence, electrical energy is a major running cost to maintain the cold storage facility. Moreover, grid power supply in the rural areas is very poor with respect to its quantity and quality. Solar power is the one of best solutions for operating small cold storage system in rural areas. Running cost of the cold storage system can also be reduced with solar power source. Solar energy-based refrigeration system is quite relevant to India because it is blessed with a good amount of solar energy in most parts of the country, throughout the year. The mean annual solar radiation is 4.6–6.6 kWh/m2/day in different parts of India.

Solar PV Powered Cold Storage System

A cold storage facility for storage of fresh horticultural produce (6–8 tonnes), powered by solar photovoltaic with battery backup has been developed at CIAE, Bhopal. The puff insulated walk-in type cold storage chamber (L×B×H, m: 5×4.4×3) was constructed and fitted with a vapour compression refrigeration system (2.5 TR capacity) and a humidifier. Temperature and relative humidity (RH) controllers were fitted in the cold storage chamber to maintain desired room temperature (5–25°C) and relative humidity (65–95 per cent) for storage of horticultural produce. For operation of the cold storage unit, solar photovoltaic (PV) power plant (about 20 kWp SPV panel capacity) and minimum battery backup (240V, 400–450 AH) are equired.The battery backup is provided to store solar power generated during the day and supply power during night and cloudy weather. The tubular lead acid solar batteries are used for storage of power off-sun shine operation. Energy output from the solar panel plant would be 70–110 kWh/day which is sufficient to operate the cold storage unit. The power conditioning unit/inverter of the solar power plant converts the DC power produced from the solar panel into three phase AC electricity for operating the cold storage unit and other utilities.

Shelf Life Study of Horticultural Crops in the Solar Powered Cold Storage

The shelf life of the freshly matured unripe mango (Dashari varieties) was studied in the month of June by storing the mangoes in the cold storage chamber at 12±1°C temperature and 90±2% relative humidity (Picture 2). Based on the different physicochemical parameters, it was found that Dashari mangoes could be safely stored up to 15 days as compared to 4 days at ambient storage. The total soluble solid (TSS) of Dashari mango increased from initial values of 8.8 to 13.0 during the cold storage period. Loss in weight of Dashari mangoes was 3.1 per cent in cold storage as compared to 14.5 per cent in case of storage at ambient condition. Firmness of the mangoes decreased from 31.6 kgf to 9.7 kgf. Similarly, the shelf life of the tomato and capsicum increased upto 15 days and 21 days, respectively, in the cold storage as compared to 4–5 days at ambient storage.

Advantages of Solar PV Powered Cold Storage System

The electrical energy required for operating cold storage system (6–8 tonne capacity) is 35–60 kWh/day in different seasons. In solar powered system, the required energy for cold storage  ill be met from solar PV power plant with battery bank and it can be grid independent. Therefore, cost towards grid electrical energy will be saved for operating the system. The solar powered cold storage unit can also be installed in rural and remote areas where there is either no grid supply or erratic power supply.

Maintenance of the System

The maintenance required for operating the system was quite less. However, the solar panel needs to be cleaned weekly to derive maximum power. Similarly, the battery water level should be checked fortnightly and the water level should be topped up to maintain optimum battery performance. The expected life of the tubular solar batteries is 6–7 years for reputed make, such as Exide and Luminous, etc. The old battery may be replaced with new one after 6–7 years.

Cost-Economics of Solar PV Powered Cold Storage System

The economics of the solar powered system and saving the grid electricity was worked out. The cost of the solar powered cold storage system (6–8 tonne capacity) with 20 kWp solar power plant and battery backup (240V, 450 AH) will be about `20 lakh (with 15 per cent financial assistance on SPV panel from the Ministry of New and Renewable Energy). Expected working life of the whole system was taken as 15 years on the safer side. Replacement of the battery bank after seven years will cost about `3.5 lakh (taken as `0.50 lakh/year). The solar power would save about 16,500 kWh grid electricity per year, worth `115,000/year as running cost of the cold storage. The interest rate on fixed capital is taken as 10 per cent per year. The cost-economics of the solar powered system has been given below. Operating cost of the stored product in the cold storage was found to be about `2.00/kg/week. The payback period of the cold storage system was found to be 10 years.

Cost-economics of the solar PV powered cold storage system

Cost of the system `2,000,000
Interest on fixed cost, % per annum 10
Working life, year 15
Junk value as @10% of the cost `20,000
Material to be handled per year (assuming 1 week storage at full capacity of 6 tonne),  onne/year    282

Cost-economics of the system

I. Annual fixed cost

Depreciation `120,000
Interest on fixed capital `100,000
Sub-total fixed cost, `/year `220,000

II. Annual variable/running cost

Annual maintenance cost for battery and other system, `/year 55,000
Labour charge, `/year (100 man days/year @ `200/man day) 20,000
Sub-total variable cost, `/year `75,000

Total operating cost (I +II), `/year `295,000

Operating cost for material storage per kg per week including profit @ `0.75/kg (considering yearly 282 tonne storage, `/kg 1.90 (1.16+0.75)

Break-even point, tonne/year 153

Pay-back period, years 9.4

GOVERNMENT SUBSIDY ON COLD STORAGE MORERNIZATION

Subsidy on Cold Storage Advancement through-Technology Adding-on 

 (Subject to maximum of Rs. 5.00 crore for Cold storage equipment and Rs. 2.50 crore for Modernization)

Government subsidy on cold storage construction after August 2016.
Government has decided to give 50 percent capital subsidy for the construction of cold storage. Subsidy of Rs 2 crore will be given for the construction of cold storage with a capacity of 5,000 metric tonne.
Maximum permissible subsidy shall be subject to original invoices and in no case more than Rs. 7.50 crore, whichever is lower. For add-on technology, subsidy shall be provided as credit linked back ended at 35% of the capital cost.

Technology offers inherent value for operators and the admissible cost norms are designed to incentivize induction and not to serve as venture funding.
Any other components as maybe decided by Technical Committee when new technology or items that reduce carbon footprints are introduced. For individual unit components like insulation, graders, Cold storage generator, solar panels - NCCD shall publish guidelines for use by appraising agency.

Cold Storage Modernization:

I Warehouse Development & Regulatory Authority (WDRA) / Negotiable Warehouse Receipt
(NWR) system,
 Computers and printers & software for use with NWR of WDRA 100% of cost as per original invoice, maximum Rs. 2 lakh.which ever is low.

II Specialized Packaging
Automated packaging lines for fruits & vegetables with farm code labelling 100% of cost as per invoice, maximum Rs. 15 lakh per project.which ever is low.

III High Reach Material Handling  Equipment (MHE)
 Specialized material Handling equipment Rs. 17 lakh per unit, for max 2 units.which ever is low.

IV Dock Levelers
In existing or new storages Max Rs. 7 lakh per unit, max 5 units

V Modernisation of refrigeration
 For upgrading of evaporator system, compressor system 50% of cost as per original invoice, maximum Rs. 100 lakh @ Rs. 2500/MT

VI Modernisation of insulation
For repair or modernising of cold chamber insulation 50% of cost as per original invoice, maximum Rs.100 lakh @ Rs. 1500/MT. which ever is low.

VII Reefer Container
Reefer container for use on existing chassis trailors Max Rs. 6 lakh per 9MT (20 foot container).which ever is low.

VII Advanced Grader
 Computerised, Optical Grading Lines 100% of cost as per original invoice, max Rs. 75 lakh per line

IX Stacking system
 Racking system Bins, Pallets 100% of invoice cost, max Rs 2000/MT.which ever is low.

X Retail Shelf
 Temperature controlled retail cabinets Maximum Rs. 10 lakhs per establishment.which ever is low.

XI  Alternate Technology
Vapour Absorption, Phase change material, Solar PV panels or Solar Thermal sys 100% of cost as per invoice, maximum Rs. 35 lakhs per project. which ever is low.

GOVERNMENT SUBSIDY ON COLD STORAGE TECHNOLOGY ADDING

Subsidy on Cold Storage Advancement through-Technology Adding-on

 (Subject to maximum of Rs. 5.00 crore for Cold storage equipment and Rs. 2.50 crore for Modernization)

Government subsidy on cold storage construction after August 2016.
Government has decided to give 50 percent capital subsidy for the construction of cold storage. Subsidy of Rs 2 crore will be given for the construction of cold storage with a capacity of 5,000 metric tonne.
Maximum permissible subsidy shall be subject to original invoices and in no case more than Rs. 7.50 crore, whichever is lower. For add-on technology, subsidy shall be provided as credit linked back ended at 35% of the capital cost.

Technology offers inherent value for operators and the admissible cost norms are designed to incentivize induction and not to serve as venture funding.
Any other components as maybe decided by Technical Committee when new technology or items that reduce carbon footprints are introduced. For individual unit components like insulation, graders, Cold storage generator, solar panels - NCCD shall publish guidelines for use by appraising agency.


Add-on Technology in Cold Storage:

I. Cold Storage Generator
( Inclusive of sensors, pressure equalising equipment,controls)
Cost will be Rs. 1.25 crore per unit or maximum 2 generators, which ever is low.

II. Specialised Cold Storage Doors
Add-on specialisation to storage doors for positive pressure  chambers. Rs. 2.5 lac per door, maximum or 20 doors.which ever is low.

III.  Cold Storage  Tents
 Low cost enclosure of polyethyelene PVC, mylar or other impermeable body As per original invoice, maximum 5 enclosures. which ever is low.

IV.  Programmed Logic Controller (PLC) equipment
 Electronic and electrical logic controls for machinery & equipment. 50% of cost as per original invoice, maximum Rs 10 lakh.which ever is low.

V. Dock Levelers#@ In existing or new storages Max Rs. 7 lakh per unit, max 5 units.which ever is low.

PIGEON PEA (TUR) MARKET OF INDIA

Indian tur market

The domestic consumption of tur in India is estimated at around 3.4 million tons. Clearly, the production in the country is not sufficient to satisfy the domestic demand and hence it has to rely on imports of the crop. India imports its unfulfilled demand from Myanmar and Tanzania. The imports of the country sums up to 4 to 5 lakh tons annually. Even though India cannot fulfill its domestic demand, it seldom exports pigeon peas in small quantities to the following countries

• United Arab Emirates
• United States of America
• Singapore
• Saudi Arabia

India has a long chain for the highly fragmented market for tur. The prices of pigeon pea in India are based on the Minimum Support Price set by the government. The tur imports are allowed in the country without any import restrictions.

Market Influencing Factors

• Weather conditions in the country
• Hoarding and Black-marketing
• Crop situation in the exporting countries especially Myanmar
• Prices of the other major competitive pulses

The major areas(Mandies) in India where tur is traded are

·         Indore (Madhya Pradesh)

·         Bhopal (Madhya Pradesh)

·         Vidisha (Madhya Pradesh)

·         Jalgaon (Maharashtra)

·         Latur (Maharashtra)

·         Mumbai (Maharashtra)

·         Akola (Maharashtra)

·         Barchi (Maharashtra)

·         Nagpur (Maharashtra)

·         Delhi

·         Chennai

·         Kanpur (Uttar Pradesh)

·         Hapur (Uttar Pradesh)

·         Kashganj (Uttar Pradesh)

·         Hatras (Uttar Pradesh)

·         Hyderabad (Andhra Pradesh)

·         Vijaywada (Uttar Pradesh)

·         Gulbarga (Karnataka)

·         Sirsa (Haryana)

·         Jalandhar (Punjab)

·         Ludhiana (Punjab)

·         Sangrur (Punjab)

·         Surat (Guajrat)

·         Dhansura (Guajrat)

·         Madosa (Guajrat)

·         Talod (Guajrat)

·         Rajkot (Guajrat)

Tur is also traded at the various commodity exchanges in India namely 

National Commodity & Derivatives Exchange ltd
Multi Commodity Exchange of India ltd
National Multi Commodity Exchange of India ltd. 

PIGEON PEA (TUR) PRODUCTION IN INDIA

Production of Tur (pigeon pea) in India

India being the largest producer of tur in the world contributes to around 85% of the world’s total production that sums up to 2430000 metric tons. The main areas in which tur is cultivated in India are

• Maharashtra (700000 tons)
• Uttar Pradesh (500000 tons)
• Karnataka (300000 tons)
• Madhya Pradesh (300000 tons)
• Gujarat (100000 tons)
• Rajasthan
• Haryana
• Punjab
• Tamil Nadu
• Orissa
• Bihar

India accounts to a production of 12-15 million tons of pulses and pigeon pea constitutes to around 20% of the share in it. India is also the leading country in the list of maximum area covered contributing to around 3.73 million hectares. This crop yields between 600 to 1200 kg per hectare.

Indian economy has been dependent on pulses for a long time. India is the largest producer, consumer as well as largest of importer of pulses. Tur or the pigeon pea, in the Indian context, is the second most important crop after peas. Tur too, is being produced the maximum in the world, by the country. The production stands at around 2.5 million tons, which is the 4/5th share in the world and 1/5th share in the total pulses produced in the country. Maharashtra produces the maximum level of pigeon pea in India accounting to 700000 tons.

WORLD SCENARIO OF PIGEON PEA OR TUR

World scenario

The world production of pigeon pea sums up to 3.25 million tons. India is the largest producer contributing to around 85% of the world total production followed by Myanmar and Malawi. It is grown on 4.3 million hectares land in the world, India again leading in this context with 85% of the area covered. Myanmar and Nepal stands on 2nd and 3rd position in the list of the countries with the highest area covered in the production of tur. In Africa, it is cultivated on 0.42 million hectares of land and china contributes to 60000 hectares of land. The area covered in Asia has reached up to 3.81 million hectares as compared to the figure of 2.44 million hectares in 1972. This has led to a 61 % increase in Asia’s production. Also there has been an increase in the production level and the area covered in the production of pigeon pea in Africa. This continent has an astonishing 96% increase in its production and 66% rise in terms of area. The global production of tur has been increasing and is risen up by 43% since 1970. As already mentioned, pigeon pea helps in nitrogen fixation process and can provide 40Kg nitrogen per hectare.

The pigeon pea importing list is topped by the India and the European Union.

The following countries stood out as the topmost pigeon pea producing countries in the world in 2004-05

• India (2430000 MT)
• Myanmar (500000 MT)
• Malawi (79000 MT)
• Uganda (78000 MT)
• Kenya (55000 MT)
• United republic of Tanzania (47000 MT)
• Nepal (26000 MT)
• Dominican Republic (13000 MT)
• Trinidad & Tobago (2900 MT)
• Haiti (2600 MT)
• Panama (2200 MT)
• Bangladesh (2000 MT)
• Venezuela (2000 MT)
• Burundi (1800 MT)
• Jamaica (1300 MT)
• Grenada (500 MT)
• Comoros (300 MT)
• Bahamas (125 MT)

Though India is the largest producer of the crop but it is not into the exports of tur at all, as the domestic consumption demand in the country is quite high and Myanmar, the neighbouring country to India leads the tur exporting countries’ list. The major importing countries that import tur or pigeon pea are

• Myanmar
• Republic of Tanzania
• Kenya
• Malawi
• Uganda
• Mozambique