Ministry of Food Processing Industries Prospects of Cold Chain Infrastructure in Eastern Region 06.04.2015.

Ministry of Food Processing Industries

Prospects of Cold Chain Infrastructure in Eastern Region06.04.2015

• Launched in FY 2008-09 with the underlying objectives :

Scheme for Cold Chain, Value Addition and Preservation Infrastructure

To provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer

To enable linking groups of producers to the processors and market through well equipped supply chain

To establish value addition with infrastructural facilities like sorting, grading, packaging and processing of produce.

To arrest Post Harvest Horticulture & Non Horticulture(Dairy, Marine,Meat etc) losses

Minimal Processing Centre at farm level facilities such as weighing, sorting, grading waxing, packing, pre-cooling, Controlled

Atmosphere (CA) / Modified Atmosphere (MA) cold storage, normal storage and IQF

Mobile pre-cooling vans and reefer trucks

Distribution hubs multi product and multi CA /MA chambers, cold storage /Variable Humidity Chambers,

Packing facility, CIP Fog treatment, IQF and blast freezing Irradiation facility

• To avail financial assistance, any two of the above components, to be part of project

• Irradiation facility treated as a stand alone project

Eligible Project Components

50% of the Bank Appraised cost of Plant & Machinery and Technical Civil Work in General Areas

75% for NE Region and difficult areas( North Eastern States, Sikkim, J&K , Himachal Pradesh and Uttarakhand)

Subject to a maximum grant-in-aid of Rs. 10 crore per project

Pattern of Assistance

Phase wise Implementation

Phase Approved Projects

UnderImplementation

Completed Projects

Phase 1 (2008-09) 10 0 10

Phase 2 (2011-12) 39 01 26

Phase 3(2012-2013)

30 10 08

Phase 4(2013-2014)*

75* 49 08

Total 138 60 52

* Including 11 cancelled and 05 unapproved projects from earlier phases

State wise Implementation

87

114

3

8

28

4 5

1

21

2

3

3

2

1

21

1

2

6

7

Projects in Eastern Region

Region Horti Dairy Meat and others

Total No. of projects

Assam 02 - - 2

Bihar - 01 - 1

Chhattisgarh 02 - - 2

Jharkhand - - - --

Odisha - - 01( Ready to Eat)

1

Eastern Uttar Pradesh*

- - - 0

West Bengal 07 - - 7

Total 11 01 01 13

* There are 06 project in Uttar Pradesh but none of them in Eastern Uttar Pradesh

EOI – wise Proposals Received/Approved

• EoI dated 31.01.2012 was specific to 08 uncovered states including Chhattisgarh, Jharkhand & Odisha.

• EoI dated 09.03.2012 was specific to N-E states

• EoI dated 02.12.2013 mentioned about special preference to states such as Odisha, Jharkhand, Bihar.

EoI date Total Proposals received

Proposals Received from ‘Eastern States’

Approved proposals from ‘Eastern States’

30.09.2010 164 17 4

31.01.2012 (for uncovered states)

19 16 3

09.03.2012 (for N-E states)

21 17 2

10.07.2012 146 15 3

02.12.2013 153 18 Approval in progress

Cold Storage GapState Cold Storage

requirement [‘000 MT]*

Present Capacity [‘000 MT]**

Gap [‘000 MT]

Assam 2,324 1,196 1128Bihar 4,241 1,406 2835

Chhattisgarh 543 427 116

Jharkhand 796 217 579Odisha 1,835 326 1509

West Bengal 10,556 5,901 4655

Total 20,295 9,473 10822All India 61,130 31,823 29,307

Eastern UP Separate data not available

* Source: National Spot Exchange data 2010 ** Source : Task Force Report(2014) Chaired by Secretary FPI

Cold Chain Capacity Created by MoFPI in Eastern IndiaState Cold

Storage/Controlled Atmosphere /Deep

Freezer [MT]

Individual Quick

Freezing( IQF)

[MT/HR]

Irradiation

[MT/Hr]

Reefer Vehicles[No.s]

Milk Storage/Milk

Processing[Litres Per Day]

Assam 8,100 0.75 19 -Bihar 12 1,30,000Chhattisgarh 8,500 05Jharkhand - - - -Odisha 1000 02 -West Bengal 50,470 6.5 29Total 68,070 7.25 - 67 1,30,000Uttar Pradesh[all facilities in western UP]

16,600 14 87 5,00,000

Deduction of Capital Expenditure up to 150% under Income Tax for Cold Chain and warehousing infrastructure;

Income Tax exemption on the profit from the business of processing, preservation and packaging of Fruits & Vegetables, Dairy, Marine, Poultry & Meat Products; 100% for 5 years and 25% for next 5 years;

Project imports for Food Product machineries at concessional custom duty;

Cold Chain and dairy machineries exempted from Excise Duty; Duty reduced for other FP & packaging machineries;

Nil or lower excise duty on Food Products.

Services pertaining to cold chain like pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables exempted from Service Tax as announced in the Union Budget 2015-16 .

FISCAL INCENTIVES FOR INVESTMENT INCOLD CHAIN

Task Force set up by PMO under the chairmanship of Secretary, FPI on 2nd Sept. 2014

Report dated 31st October, 2014

Major Recommendations Additional Cold Storage Capacity of 7.5 million tonnes over next five years with an

allocation of Rs 6100 crore to be created together by NHB, NHM and MoFPI MoFPI to create capacity of 2.5 million tonnes over next five years with an allocation

of Rs 4000 crores Scheme of Cold Chain of MoFPI may be made open ended Grant component may be reduced from 75% to 50% of project cost for Special

Category States and from 50% to 35% for other States, aligning pattern of assistance with the MIDH

Recommendations of Task Force Chaired by Secretary, FPI

Subject to approval, Ministry of Food Processing Industries proposes to:

Take up 500 Integrated Cold Chain projects as per the modified pattern of assistance during next five years to creat capacity of 2.5 million tonnes

Make the Scheme of Cold Chain Value Addition and Preservation Infrastructure open ended

Way Forward

THANK YOU