Odisha Cold Storage Scheme Unveiled, Worth Rs 252 Crore

The Odisha state government has recently approved a substantial investment to bolster the Odisha Cold Storage infrastructure Scheme . This initiative is a cornerstone in ensuring that farmers and food producers across Odisha have access to facilities that can preserve the quality and value of their produce.

A New Era for Cold Storage in Odisha

The Odisha Cabinet has approved a new scheme, titled “Financial Assistance to Cold Storages,” with a hefty investment of Rs 252 crore. This financial injection aims to revitalize and expand cold storage facilities throughout the state, directly addressing the challenges faced by the agricultural community in storing perishable goods.

Key Details of the Odisha Cold Storage Scheme

• Financial Support: The scheme includes a 50% subsidy on the capital cost for setting up new cold storage units. This financial assistance is designed to encourage entrepreneurs to invest in the sector.
  • For SC/ST/Transgender/Women beneficiaries from scheduled areas, the subsidy is 60% of the fixed capital expenditure, limited to Rs. 6.50 crore, whichever is lower.
  • For other beneficiaries, the subsidy stands at 50% of the fixed capital expenditure, limited to Rs. 6.00 crore, whichever is lower.
• Interest Subvention: Alongside the subsidy, there’s a provision for interest subvention, making loans more accessible and affordable for setting up these crucial infrastructures.
  • Beneficiaries can receive interest subvention up to 6% (3% through AIF by Govt. of India + an additional 3% as a top-up from the State).
• Geographical Spread: The new cold storage units are planned to be established in each of the 58 subdivisions across Odisha, ensuring widespread coverage and accessibility.
• Objective: The primary goal is to reduce post-harvest losses by providing adequate storage solutions, which in turn supports farmers by offering them a platform to store their produce until they can sell it at better market prices.

Impact on Local Agriculture

The lack of sufficient and efficient cold storage has been a persistent issue leading to significant losses due to spoilage. With this new scheme, the state government is tackling this problem head-on:

• By ensuring that produce can be stored longer without degrading in quality, this scheme promises to decrease the substantial losses farmers face annually.
• Better storage facilities mean farmers can hold onto their crops until they can fetch higher prices, potentially transforming the economic dynamics for many in the agricultural sector.
• The construction and maintenance of these facilities will also generate employment, contributing to the local economy.

Working Capital Support Under the Odisha Cold Storage Scheme

Cold storage units under this scheme are entitled to reimbursement of interest paid on Cash Credit Working Capital loans availed from banks, similar to the CM-SRIM scheme of the MSME Department. Here’s how the reimbursement is structured:

• Slabs-1: Up to Rs. 10 Lakh – 100% reimbursement
• Slabs-2: Above Rs. 10 Lakh and up to Rs. 50 Lakh – 75% reimbursement
• Slabs-3: Above Rs. 50 Lakh and up to Rs. 1 Crore – 50% reimbursement
• Slabs-4: Above Rs. 1 Crore and up to Rs. 5 Crore – 25% reimbursement

Infrastructure Development & Electricity Subsidy

• The new cold storage will adhere to high-quality standards, ensuring that the infrastructure can handle the diverse needs of different agricultural products.
• There’s an emphasis on building energy-efficient facilities, which aligns with broader environmental goals of reducing carbon footprints in agricultural practices.
• A 50% subsidy on the total electricity bill for a maximum period of seven years from the date of commissioning.
• In case of existing operational units, and units that may be revived in the future, the electricity subsidy will apply similarly.

Challenges and Solutions

While the scheme is a step in the right direction, it faces its set of challenges:

• Implementation: Ensuring that the funds are used effectively and the infrastructure is built to last will require stringent oversight and quality checks.
• Awareness and Training: Farmers and potential investors will need education and training to utilize these new resources to their fullest potential.

To overcome these, the government plans to:

• Monitor Progress: Regular audits and reports will be part of the scheme’s implementation phase.
• Support Systems: Training programs and workshops will be organized to educate stakeholders on the benefits and operational aspects of cold storage.

Looking Forward

This Rs 252 crore scheme is not just about building structures; it’s about nurturing an ecosystem where agriculture can thrive through innovation and support. By enhancing the cold storage infrastructure, Odisha is setting a precedent for how state governments can directly influence and uplift agricultural productivity and sustainability.