PROJECT REPORT OF 5000 MT COLD STORAGE

MODEL / BANKABLE PROJECT  REPORT  FOR COLD STORAGE  OF   5000 MT (50000 Quintals).

Cold Storages are essential for extending the shelf life, period of marketing, avoiding glut, post harvest losses reducing transport bottlenecks during peak period of production and maintenance of quality of produce.  It is, therefore, necessary that cold storage are to be constructed in major producing as well as consuming centres.  The development of cold storage's in the country has an important role in reducing the wastage of the perishable commodities and providing remunerative prices to the growers and to make available farm products to the consumers at competitive and affordable prices.

The annual production of fruits and vegetables in the country accounts for 18 to 20% of our agriculture out put. Varied agro climatic conditions and better availability of scientific package of practices, there is a vast scope for increasing the production. The lack of cold storage / cold room facilities is one of the main bottlenecks in tapping the potential.

Location

The project may be located anywhere in the country suitably either near the producing farms or consumer centres.

Project cost

The project cost for setting up of 5000 MT Cold Storage may be in the range of Rs.5.00 – 6.00 Crore, including cost of the land. 

Quantum of subsidy

Back- ended subsidy @ 40% of the project cost for general and 55% in case of hilly and scheduled areas for maximum storage capacity up to 5,000 per ton under the Govt. of India / NHB Capital Investment Subsidy Scheme.

   

                              Funding pattern under Capital Investment Subsidy Scheme

		Through State Government					Direct
Assistance		NCDC to State Govt.		State Govt. to Society
		General States	HS Areas	General States	HS Areas		General States	HS Areas
Loan		50%	35%	40 %	25%		35%	20%
BES*		40%	55%	40 %	55%		40%	55%
Share Capital		***	***	10 %	10%		***	***
Total		90%	90%	90 %	90%		75%	75%
		10 % by Society					25% by Society

* subject to availability from Government of India /NHB otherwise loan from NCDC  for a cold storage /CA store up to 5,000 ton capacity. HS =Hilly and Scheduled Areas.

Indicative Project Outlay                                                             (Rs.in lakh)

1.        Land and land development                                  -           130.00                                  

2.         Building and civil works                                        -           120.00

3.         Plant & machinery                                                -           153.00

3.         Utilities                                                                  -             23.00

4          Technical Know how                                             -               2.00

5.         Misc. fixed assets                                                 -             20.00

6.         Pre-operative expenses                                        -             17.00

7.         Contingencies                                                       -             13.00

8.         Margin money                                                       -             12.00

           

         Total                                                                          -           500.00

Unit size

The storage capacity envisaged for a multi purpose / multi commodity cold storage plant is 5000 MT.  Plant operation will be on an average of 10 hours / day.  Approximately 1 acre of land of land is required for setting up of a multi purpose / multi commodity cold storage plant.

  

PROFIT ANALYSIS COOL CHAMBER

 Products storage Capacity =50000 Qtls

Option-1

If the product stored on rented basis, the rent charge is Rs.0.50 per kg / day (maximum 300 days storage in a year and 70% occupancy)

Collected revenue will be = Rs.3500000 x 0.40 x 300 = Rs.42,000,000 per year

Option-2

A-   If the products stored on rented basis as well as by own trading. Products stored on rented basis = 3500 MT 

   Revenue will be collected Rs. 0.40 / kg / day = Rs.350000 x 0.30 x 300 = Rs.42,000,000/-

B-    

Products will be stored by own trading = 1000 MT (8 rotation in a year)

     Average profit of mixed vegetables = Rs.5 / kg

     Profit for 10 MT vegetable = 1000000 x 5 x 8 = Rs.40,000,000/-

     Total profit will be A +B

    = Rs. 42,000,000/- + Rs. 40,000,000/= Rs. 82,000,000/-

Protocol for Implementation of Technical Standards

The Govt. of India vide letter F.No.45-64/2010-Hort. dated 25.2.2010 has informed that all the project proposals received under various schemes of Department of Agriculture & Cooperation for setting up of Cold Chain Projects should invariably comply to the prescribed technical standards.  

Procedure for availing assistance

Societies willing to set up new cold storage / modernization / expansion of their existing cold storage are required to apply to National Horticulture Board (NHB) for issue of “LOI” and send copy of DPR and data-sheet duly filled in by consulting engineer to NHB.  The DPR and data-sheet shall also be enclosed with the application by the society to NCDC, seeking financial assistance.