Cold Chain Infrastructure Subsidy 2025: Complete Guide to PMKSY Grants for Cold Storage Projects

India's food processing sector continues to grow rapidly, but post-harvest losses remain a significant challenge due to inadequate cold storage and temperature-controlled logistics. To strengthen the supply chain and improve food preservation, the Government of India provides financial assistance through the Cold Chain Infrastructure Subsidy under the Integrated Cold Chain & Value Addition Infrastructure Scheme of PMKSY.

The scheme encourages investment in modern cold chain facilities by offering capital grants for eligible projects, enabling businesses to reduce infrastructure costs while improving operational efficiency and product quality.

Understanding the Cold Chain Infrastructure Subsidy

The Cold Chain Infrastructure subsidy is designed to develop an integrated cold chain network that connects production centres with processing units, storage facilities, transportation systems, and distribution hubs. The objective is to minimise food wastage, improve value addition, and enhance the availability of quality food products across domestic and export markets.

The scheme covers infrastructure for dairy, fruits and vegetables, fisheries, meat processing, poultry, marine products, and other temperature-sensitive food industries.

Financial Assistance Available

Eligible projects can receive financial assistance based on their location and applicant category.

• General Areas: Grant up to 35% of eligible project cost.
• Difficult Areas: Grant up to 50% of eligible project cost.
• SC/ST Entrepreneurs: Grant up to 50% of eligible project cost.
• Farmer Producer Organizations (FPOs): Grant up to 50% of eligible project cost.
• Self Help Groups (SHGs): Grant up to 50% of eligible project cost.

The maximum financial assistance under the scheme is ₹10 crore per eligible project.

Eligible Infrastructure Components

The scheme supports integrated cold chain projects that may include:

• Collection centres
• Pre-cooling facilities
• Sorting and grading units
• Packing facilities
• Cold storage warehouses
• Controlled atmosphere storage
• Dairy processing units
• Meat and poultry processing facilities
• Fish and seafood processing units
• Blast freezing and IQF systems
• Refrigerated vehicles and reefer trucks
• Value addition and packaging infrastructure

Integrated projects that combine multiple components generally provide better operational efficiency and help reduce post-harvest losses.

Who Can Apply?

Various business entities engaged in food processing and cold chain development may be eligible, including:

• Private Limited Companies
• LLPs
• Partnership Firms
• Proprietorships
• Cooperatives
• Farmer Producer Organizations
• Producer Companies
• NGOs
• Government organizations
• Joint Venture entities

Applicants are expected to satisfy the financial and technical requirements prescribed under the scheme guidelines.

Benefits of Investing in Cold Chain Infrastructure

A modern cold chain improves product quality, extends shelf life, reduces wastage, and enables businesses to access organised retail and export markets. Government financial assistance also lowers the overall project cost, making infrastructure investments more financially viable.

Integrated cold chain facilities contribute to better supply chain management, improved farmer income, enhanced food safety, and stronger value addition across the food processing ecosystem.

Conclusion

The Cold Chain Infrastructure Subsidy offers a valuable opportunity for businesses looking to establish or expand cold storage, food processing, refrigerated transportation, and value addition infrastructure in India. By providing substantial government support, the scheme encourages investment in modern facilities that reduce post-harvest losses and strengthen the country's food supply chain.

Businesses planning such projects should carefully review the latest scheme guidelines, assess project feasibility, and ensure that all technical and financial requirements are fulfilled before submitting an application.

Learn more: Planning a cold storage or food processing project? Explore the latest Cold Chain Infrastructure Subsidy guidelines, eligibility criteria, and funding opportunities to make informed investment decisions.

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