Integrated Cold Chain and Value Addition Infrastructure (PMKSY Cold Chain Scheme)

Introduction 

The Integrated Cold Chain and Value Addition Infrastructure scheme is a government of India agriculture scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), launched in 2017-18. Its purpose is to build cold chain, preservation, and value addition infrastructure from the farm gate all the way to the consumer, so that perishable items like dairy, meat, poultry, marine (except shrimp), non-horticulture produce can be handled without spoilage.

Here’s the problem it addresses: many farmers face large losses after harvest because of lack of proper storage, cooling, transport, sorting, grading and processing. Food spoils, quality drops, and incomes suffer. What this really means is farmers earn less, consumers get lower quality, and overall post-harvest loss is high. The Cold Chain scheme tries to plug those gaps through policy support.

Key policy-needs behind it include reducing post-harvest losses, improving food safety and shelf life, increasing value addition (so raw produce doesn’t sell for as low), creating employment in rural areas, and enhancing returns for farmers.Eligible groups are individuals, Farmer Producer Organisations (FPOs), Farmer Producer Companies, NGOs, firms, companies, public sector undertakings etc., who have a business interest in cold chain or supply chain infrastructure.

Overview of the Scheme

The scheme is run by the Ministry of Food Processing Industries (MoFPI), Government of India. It was originally introduced in 2008; since 2017 it has been folded into the central-sector umbrella scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Key details

• Implementing agencies / Eligible entities
  Projects under this scheme can be carried out by individuals (including farmers), Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), NGOs, firms/companies, Public Sector Undertakings or other organisations.
• Funding pattern / Assistance rates
  • For general areas, grant-in-aid is 35% of the eligible project cost.
  • In “difficult areas” (includes SC/ST, FPOs, SHGs, hilly/scheduled areas etc.), assistance goes up to 50%.
  • Maximum grant per project is ₹ 10 crore.
• Sectors / Components Covered (coverage)
  The scheme supports:
  • cold storage, preservation infrastructure, refrigeration units, transport infrastructure (e.g. reefer vehicles)
  • value addition & processing infrastructure (frozen storage, deep freezers integral to processing)
  • technical civil works related to these infrastructures
  • note: standalone cold storage or standalone pack houses are not supported under this scheme (pack houses are supported under the Operation Greens component for the fruit & vegetable sector)
• Current status / evolving features
  • As of 30 June 2025, under the broader “cold chain & value addition” components of PMKSY, 395 cold chain projects have been approved.
  • Performance: of ~1601 projects across all PMKSY components, 1133 are completed or operational, with approved grants totalling ~₹ 5,365.32 crores.
  • The scheme is demand driven – proposals are invited through Expression of Interest (EoI), evaluated on merit, subject to fund availability.
  • The fruit & vegetable sector component under “cold chain” was discontinued from this scheme from 8 June 2022; those kinds of projects were shifted to Operation Greens (another component of PMKSY).

Tiny example to clarify

If a Farmer Producer Organisation in a hilly district wants to set up a processing unit with frozen storage and transport vehicles, under this scheme they could get 50% grant-in-aid of eligible costs (since it’s a difficult area), up to ₹ 10 crore, provided their proposal meets the guidelines and funding is available.

Objectives 

• Provide integrated cold chain, preservation and value-addition infrastructure without interruptions from farm gate to consumer, to cut down post-harvest losses of non-horticulture produce, dairy, meat, poultry, and marine/fish (except shrimp).
• Support eligible entities (FPOs, SHGs, firms, etc.) to build farm-level infrastructure, processing centres, distribution hubs, refrigerated transport, and irradiation facilities.
• Promote preservation capacity and processing capacity so more produce can be stored safely and processed into higher value before it reaches markets.
• Offer financial assistance (grant-in-aid) to reduce the investment burden for cold chain infrastructure, especially in “difficult areas” and for underserved groups, subject to ceilings.
• Encourage participation of farmers, farm organisations, entrepreneurs, and private companies in improving supply chain infrastructure so that produce remains fresh, quality improves and incomes go up. 

Key Features / Benefits 

• Full-chain infrastructure support
  Helps build cold chain infrastructure across the supply chain – things like pre-cooling, sorting, grading, wax coating, cold storages, refrigerated transport (reefer vans), and blast freezing facilities. (Example: A project could include setting up sorting + refrigeration + transport for fish or dairy.)
• Grant-in-aid to reduce investment burden
  Offers a subsidy (grant) portion of project cost so entrepreneurs don’t carry all cost alone.
• Different subsidy rates based on area / challenge level
  Higher subsidy in challenging / special areas: e.g. in North-East, Himalayan States, Islands, ITDP areas the assistance is higher than in general plain areas.
• Cap on grant per project
  Maximum grant-in-aid per project under this scheme is ₹ 10 crore for integrated cold chain projects including irradiation facility.
• Support for value addition and preservation
  The scheme covers not just storage/transport but also value addition (processing, preservation) infrastructure, to increase shelf life, improve quality and reduce wastage.
• Demand-driven / entrepreneur-led proposals
  The scheme works by inviting proposals (Expression of Interest / EoI) from eligible entities rather than the government building everything itself.
• Wide eligibility of beneficiaries
  Eligible entities include farmers, farmer groups/FPOs, entrepreneurs, firms, NGOs, PSUs etc., so individuals or organisations with business interest can apply.
• Boost to agricultural incomes & employment
  Helps farmers get better returns by preserving produce quality and reducing losses. Also generates jobs in rural/post-harvest/processing sectors.
• Large scale capacity creation
  Projects under PMKSY’s cold chain component have approved preservation/processing capacities of many lakh metric tonnes per annum. (As on 30.06.2025, 1,601 projects approved across all components, total preservation & processing capacity of ~255.66 LMT/Annum. )
• Encouragement for food irradiation units
  The scheme is pushing for multi-product food irradiation units (which help extend shelf life) under its integrated cold chain & value addition infrastructure component. 

Eligibility Criteria 

Applicants need to meet certain criteria depending on who they are. These rules are in place so the scheme helps the right people, maintains fairness, and ensures projects are viable.

Eligible Beneficiary Types & Criteria

• Individuals / Entrepreneurs / Firms / Companies
  Must apply with a project proposal that follows scheme guidelines. Need to own or secure land (or have long-term lease), technical capacity, financial backing. The project should be new (not just upgrading an existing cold chain).
• Self-Help Groups (SHGs), NGOs
  Must be properly registered. Should have bank linkage or proof of financial capacity. Projects should be in the agricultural/food processing / preservation / cold chain field.
• Farmer Producer Organisations (FPOs), Cooperatives, Farmer Producer Companies
  Need proper registration under law/act. Must have active operations or members, be engaged in production, processing, or supply chain related to cold chain / preservation.
• Public Sector Undertakings (PSUs), Private Sector Companies, Joint Ventures, LLPs, Partnerships
  Must legally exist (incorporated or registered), have the technical & financial credibility to execute infrastructure projects. Must follow scheme norms (e.g. minimum project cost, bank loan/term-loan etc.).

Special Categories & Concessions

• Projects from “Difficult Areas” (NE states, Himalayan states, islands, notified tribal / hilly / scheduled areas) get more favourable eligibility conditions – lower equity / term loan percentages etc.
• Applicants from SC / ST / FPOs / SHGs may have relaxed criteria in terms of required equity infusion or term-loan proportion.

What not Eligible

• Projects that are only expansions or upgrades of existing cold chain / preservation / value addition infrastructure are not eligible under this scheme. The scheme is for new integrated cold chain & value addition projects.
• Entities that have already received grant-in-aid under the same component of the scheme cannot apply again for another similar project under the same EoI.

Mandatory Documents & Other Criteria

These are required so the government can assess the project properly, check that applicant is genuine, and the project is feasible:

• Project proposal / Detailed Project Report (DPR) showing technical & financial details, raw material availability, operational plan etc.
• Proof of legal entity: registration / incorporation certificate / registration under appropriate act etc.
• Land documents: ownership or lease deeds (long enough lease), land use approvals, possession status.
• Bank loan sanction letter (term loan) from scheduled bank / financial institution, as required under scheme norms.
• Financial statements / net worth proof of promoters / applicants; quotations from equipment suppliers; cost estimates. 

Application Process

1. Watch for Expression of Interest (EoI) announcements
   The Ministry of Food Processing Industries (MoFPI), Government of India, publishes EoI notices inviting proposals under the Cold Chain scheme.
2. Visit the official portal
   Use the SAMPADA portal, under MoFPI. The registration page for cold chain EoI is at: https://www.sampada-mofpi.gov.in/ColdChainEOI/Register.aspx Sampada Mofpi+1
3. Register / Login
   • If you are a first-time applicant, register as a user on the SAMPADA portal.
   • If already registered, login with your credentials.
   • Make sure your business/entity information is up to date.
4. Fill the application / EoI form
   In the application form you will need to provide:
   • Beneficiary / applicant details (name, address, registration, etc.)
   • Land / facility details (location, lease or ownership, connectivity)
   • Proposed component(s) you want support for (cold storage, refrigerated transport, processing, etc.)
   • Financial details: cost estimates, means of finance (equity, loan, grant)
   • Bank account / loan sanction details if applicable.
5. Upload required documents
   You will be asked to submit scanned copies (or digital files) of documents such as:
   • Detailed Project Report (DPR) as per scheme guidelines
   • Registration / incorporation certificates of your entity
   • Land/lease documents showing ownership or lease duration
   • Bank loan sanction letter if required
   • Financial statements / net worth, technical capacity etc.
6. Check for fee or performance security requirement
   • There is no “standard” fee mentioned in many recent official EoIs, but watch the EoI notice for any application fee or security deposit if mentioned. (In recent EoI, no fee is cited in PIB release)
   • Some projects may require performance guarantees or security, depending on guidelines. (Check EoI guidelines)
7. Submit the application / EoI before deadline
   • Make sure to submit all sections and documents by the deadline (date & time announced in the EoI).
   • After submission you will receive an acknowledgment or application ID from the portal.
8. Verification & field inspections (if applicable)
   • The ministry / appointed agency may verify the submitted documents.
   • Physical or field inspection of the proposed site may happen to check feasibility and compliance. (Though specific field inspection steps are not always detailed in EoI)
9. Evaluation & approval
   • The application is reviewed against scheme guidelines. If eligible and technically feasible, it gets approved.
   • The MoFPI publishes revised operational guidelines; you must comply with those. For example, the guidelines dated 22.05.2025 are in force for recent EoIs.
10. Release of assistance / Grant-in-Aid
    
    
    • On approval, the subsidy/grant is released as per scheme norms. Usually, this is done through SAMPADA Portal.
    • There may be installments tied to milestones (e.g. completion of civil work, installation of machinery) as per the guidelines.

Tips to avoid common mistakes

• Double-check names, addresses, and entity registration exactly match in all documents (registration certificate, bank account, land documents) so there is no mismatch.
• Upload all required documents clearly (legible scans), and ensure they are dated appropriately (recent), especially bank letters or lease documents.
• Start early. Deadlines are firm. Missing the EoI submission date/time means you are not considered.
• Make sure your proposal strictly follows the operational guidelines (component eligibility, financials etc.). Deviations (e.g., doing only upgrades if not allowed, picking unsupported components) lead to rejection.

Challenges or Limitations 

Even though the Integrated Cold Chain and Value Addition Infrastructure (PMKSY Cold Chain Scheme) gives strong support to entrepreneurs and farmers, applicants often face some real-world challenges during the process. Here are the common issues and what you can do about them:

1. Delays in Verification and Approvals → Keep documents ready in advance
   Verification of land papers, company registration, and financial records can take time. To avoid delays, keep all your original and updated documents organized before applying. Submitting clear and complete scans helps speed up the process.
2. Limited Budget and High Competition → Apply early
   The scheme runs within a fixed budget headroom each year. If many proposals come in, only a limited number are approved. Submitting your proposal as soon as the Expression of Interest (EoI) opens gives you a better chance.
3. Complex Documentation Requirements → Follow the checklist
   Many applicants struggle with preparing a Detailed Project Report (DPR), loan sanction letters, or lease agreements. Use the official DPR template, and if needed, consult a professional project consultant. Double-check every document against the application checklist on the SAMPADA portal.
4. Mismatch in Land or Ownership Records → Update records before applying
   A common mistake is applying with outdated or disputed land/lease records. Ensure the land title or lease deed is valid and in the applicant’s name for the required duration. Updating records with the revenue office before applying saves future rejection.
5. Bank Loan Sanction Delays → Start discussions early
   Since financial closure is often required, waiting until the last minute for a bank sanction letter can hold back your application. Approach your financing bank early, share the DPR with them, and request a sanction letter well in advance.
6. Seasonal Project Timelines → Plan construction and installation realistically
   Cold chain projects need civil works, machinery, and testing, which may be delayed by monsoon or harvesting seasons. Factor these into your project schedule and buffer extra time when preparing your DPR and milestones.
7. Technical Capacity and Cost Overruns → Build a practical proposal
   Some applicants propose facilities that are too large or technically complex for their actual resources. Stick to a project size that matches your financial and managerial capacity. Smaller, well-executed proposals often perform better than over-ambitious ones.
8. Portal/Submission Errors → Save drafts and recheck before final submission
   Online applications sometimes fail if documents are too large or formats are incorrect. Save your draft regularly, use recommended file formats (usually PDF), and confirm that all attachments are uploaded before submitting. Always keep a backup copy on your computer..

Government Support & Future Outlook 

• The scheme under PMKSY is one of multiple components in the broader Pradhan Mantri Kisan Sampada Yojana. Other components include Creation of Food Processing & Preservation Capacities, Infrastructure for Agro-Processing Clusters, Food Testing Labs, Operation Greens, R&D etc.
• There is an official Convergence Portal launched in September 2022 between PMKSY, PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises), and the Agriculture Infrastructure Fund (AIF). This portal allows beneficiaries under PMKSY or PMFME to access additional support, interest subvention, or credit linked subsidies in a more streamlined manner.
• The Standard Operating Procedure (SOP) for convergence spells out how a project under PMFME and PMKSY or AIF can leverage support from more than one scheme, using approved project reports or sanction letters from one scheme to claim benefits under the other.

Future Plans & Updates

• As of 25 July 2025, MoFPI reported that under PMKSY, 1,601 projects across all component schemes have been approved, and 1,133 are already operational or completed. This includes many cold chain & value addition infrastructure projects.
• The scheme guidelines were revised in May 2025.

Practical Example: How a Farmer / FPO Can Benefit via Convergence

Suppose an FPO wants to set up a cold storage + processing unit. They can apply under PMKSY for grants-in-aid for cold chain infrastructure. If they are also eligible under PMFME (for micro food processing units) and AIF (for infrastructure loans / support), they can use the convergence portal to:

• Use their DPR approved under PMKSY or PMFME to claim interest subvention under AIF.
• Get credit-linked subsidy under PMFME plus PMKSY grant.
• Reduce their cost burden, improve access to finance, and speed up approvals because documents already submitted under one scheme may be used in others.

Conclusion 

The Integrated Cold Chain and Value Addition Infrastructure (PMKSY Cold Chain Scheme) plays an important role in reducing post-harvest losses and improving the value farmers, FPOs, SHGs, and agri-entrepreneurs get from their produce. By supporting storage, processing, and transport infrastructure, it directly helps those who face challenges in preserving perishable crops, dairy, meat, and fish. The scheme’s benefits include financial assistance, grants, and better market access, making it a practical support system for both small farmers and larger producer groups. If you are considering participation, the first step is to check your eligibility and apply through the official SAMPADA portal – https://sampada-mofpi.gov.in, or visit your nearest agriculture or food processing office for guidance. Always confirm the latest guidelines, documents required, and benefits on the official portal or helpline before applying. 

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002620.