Cold storage subsidy in India: NHB, MIDH and AIF, and what actually gets sanctioned

01Which scheme covers your store

NHB and MIDH are mutually exclusive: one project, one of the two. AIF can be stacked on either. The MoFPI scheme is often quoted for cold storage, but its 2025 guidelines say stand-alone facilities will not be considered, so it is not the route for an ordinary potato store.

02The cost norms the subsidy is worked out on

The subsidy is a percentage of an eligible cost, and the eligible cost is capped by a norm per MT of capacity. Capacity is counted from chamber volume: 3.4 cubic metres (120 cubic feet) counts as one MT.

• Controlled atmosphere: MIDH adds ₹12,000/MT for CA (CS-2-CA). Under NHB the CA add-on is capped at ₹1,375 lakh and the total subsidy for a CA store at ₹900 lakh.
• Onion stores (CS-1-Onion) are covered at the same norms; the low-cost onion and garlic store under MIDH gets 50% on a ₹7,000/MT norm, for 5 to 1,000 MT.
• Ripening chambers: ₹1.00 lakh/MT non-pressurised, ₹1.20 lakh/MT pressurised, with 11 cubic metres counted as one MT.
• Modernisation (NHB): refrigeration up to ₹125 lakh but not above ₹3,000/MT, insulation up to ₹120 lakh but not above ₹1,800/MT.
• The guidelines do not say whether the 10,001–20,000 MT rate applies to the whole store or only to the tonnage above 10,000 MT. Ask NHB before you plan a store that size.

03A worked example

A 5,000 MT potato store, civil construction, in a general area, under MIDH. Eligible cost: 5,000 × ₹9,600 = ₹4.80 crore, or what you actually spent, whichever is lower. Subsidy at 35%: up to ₹1.68 crore. The same store in a Himalayan or North-Eastern state: up to ₹2.40 crore.

A 6,000 MT store under NHB, civil construction: 6,000 × ₹9,120 = ₹5.47 crore eligible; 35% is about ₹1.92 crore.

If the store cost more than the norm, the extra is yours alone. If the documents give different capacities, NHB uses the lowest one.

04The order things have to happen in

Plan the cash on the assumption that the subsidy arrives after the work is done and paid for. Projects that treat it as project finance are the ones that stall halfway.

• Apply online to NHB for a Letter of Comfort, then a Grant of Clearance. Nothing can be claimed without them. (Under MIDH, the state horticulture mission gives the equivalent sanction.)
• Do not start work before clearance. NHB allows only fencing, a compound wall and land levelling from your own margin money before it.
• The bank appraises the project and sanctions the term loan, but must not disburse before NHB has cleared it in writing.
• Build within 18 months of the first disbursement (extendable by 6).
• Claim online within 3 months of completion, and no later than 21 months from the first disbursement. A joint inspection follows, then release through the bank.

05Who can apply, and who cannot

Individuals, proprietorships, partnerships, LLPs, companies, co-operatives, trusts, societies, SHGs, FPOs and APMCs can apply. Assistance is once per family (spouse, parents, children). Serving government employees (other than Group D), pensioners drawing ₹10,000 a month or more, MPs, MLAs and ministers cannot.

The land must be owned, or on a registered lease of at least 10 years, and the project must be new. The application fee runs from ₹2,360 for projects up to ₹20 lakh to ₹59,000 for projects above ₹2 crore, GST included.

• Documents for the Grant of Clearance: PAN, Aadhaar, registration papers or partnership deed or MoA and board resolution, caste certificate if claimed, land document, detailed project report, bank sanction letter, bank appraisal note, bank legal search report, photograph and signature.

06Where files actually fail

• Work started before clearance. A dated photograph at inspection settles it.
• A specification that does not match the appraisal: panels thinner than quoted, capacity smaller than claimed.
• Capacity measured differently by the applicant and the inspector. At 3.4 cubic metres per MT, agree the chamber volumes before you write a capacity down.
• The bank disbursing before NHB clearance.
• A land lease shorter than 10 years, or unregistered.

07Uttar Pradesh: the licence and the state policy

In Uttar Pradesh no one may run a cold storage business without a licence under the UP Regulation of Cold Storages Act, 1976. The licensing officer is the Director of Horticulture and Fruit Utilization. The Act also requires insurance of stored produce, a receipt to every depositor, prescribed accounts, and the capacity displayed at the entrance.

The UP Food Processing Industry Policy 2023 offers 35% for cold chain and value-addition infrastructure. Whether a stand-alone potato store qualifies, and whether it stacks with NHB, is set by the operating government order: ask the Horticulture and Food Processing department before counting on it.

08Sources

• MIDH Operational Guidelines 2025 (dated 31.12.2024), Annexures V and VII, nhb.gov.in.
• NHB, important instructions and applicant eligibility for the capital investment subsidy (online application page), nhb.gov.in.
• NCCD clarification dated 08.05.2025 on the 20,000 MT limit, nhb.gov.in.
• Agriculture Infrastructure Fund scheme guidelines, revised September 2024, agriinfra.dac.gov.in.
• MoFPI, revised operational guidelines of the cold chain scheme dated 22.05.2025, mofpi.gov.in.
• UP Regulation of Cold Storages Act, 1976; UP Food Processing Industry Policy 2023.
• All read on 21 October 2026. NHB lists its operational guideline as under revision (reference dated 21.08.2026).

09Common questions

How much subsidy is available for a cold storage in India?

35% of the eligible project cost in general areas and 50% in the North-East, Himalayan states and scheduled areas, under MIDH (stores up to 5,000 MT) or NHB (5,001 to 20,000 MT). The eligible cost is capped by a norm: ₹9,600 per MT under MIDH for civil construction, so a 5,000 MT store can get up to ₹1.68 crore at 35%.

What is the NHB cold storage subsidy?

NHB’s Capital Investment Subsidy pays 35% (50% in special areas) of the eligible cost of a cold store above 5,000 MT and up to 20,000 MT, credit-linked and back-ended. Cost norms start at ₹9,120 per MT (civil) or ₹11,400 per MT (with a pre-engineered building) for 5,001 to 6,500 MT and fall as size rises.

Can I start construction and apply for subsidy afterwards?

No. NHB requires its Letter of Comfort and Grant of Clearance before work starts and before the bank disburses; only fencing, a compound wall and land levelling from your own money are allowed earlier.

Can I get NHB and MIDH subsidy together?

No, they are mutually exclusive. You can, however, add the Agriculture Infrastructure Fund’s 3% interest subvention on loans up to ₹2 crore to either.

When is cold storage subsidy released?

After completion and a joint inspection, through the lending bank. The claim must be filed within 3 months of completion and within 21 months of the first loan disbursement.

Does NABARD give subsidy for cold storage?

The capital subsidy itself comes from NHB or MIDH, released through banks. What most people mean by “NABARD subsidy” is this credit-linked route, or the interest subvention under the Agriculture Infrastructure Fund, which banks deliver.