There are several factors to consider in deciding if the cold storage venture is profitable. Knowing ‘What are the subsidies available for cold storage in Andhra Pradesh’ is essential.
What is assistance from Government?
Getting assistance from the government implies receiving support. The government of India knows that insufficiency of cold storage facilities, there is a loss of post-harvest fruits and vegetables. It is the reason the government is providing schemes to increase cold storage numbers.
The Indian government is helping by implementing schemes and is aiding the industry with requirements. It is helping to ease doing business, grow market share, and to attract foreign investors.
Is constructing cold storage in Andhra Pradesh a profitable business, the investors of businesses like to know? There is full support from the government as the cold storage business is profitable. Several subsidies and tax exemptions ascertain the industry grows at a faster rate. For more information, contact NSSPL, the leaders in cold storage infrastructure.
Who are eligible to receive government exemptions and benefits?
The integrated cold chain and the infrastructure projects such as proprietor/partnership firms, cooperatives, corporations, companies, farmer producer organizations, state/central PSUs, NGOs, etc, have an interest. People keen on cold chain solutions and also people who want to invest.
What are the subsidies available for cold storage in Andhra Pradesh
A serious question is about the cold storage construction being a profitable business. Here the aim is to boost the cold storage facilities. The government is offering several programs to keep perishable foodstuff safe. It is helping cold storage growth and is providing tax concessions and incentives.
Under the 80-IB section of the Income Tax Act, deductions are from the profits earned relating to the sector of the cold chain. Section 35-AD, 1961, Income Tax Act, offers a 150% deduction available for expenditure on capital investments to establish a cold chain in India. There are 100% deductions for the initial five years, and for the coming five years, it is 25 to 30%.
The custom duty concessional rate is @ 5% for cold chain under project import. All the projects of the cold chain are eligible for external commercial borrowings now.
For further clarification on subsidies, contact NSSPL, they are experts and guide you in every step. No matter, whether it is a loan procedure or subsidy.
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What are the different exemptions and benefits?
The different benefits and exemptions include NHB, NHM, and APEDA. There is complete cooperation between MoFPI and MIDH.
- The MoFPI scheme provides an integrated cold chain, while it preserves the infrastructure facilities without break. It reduces the loss causing due to post-harvest of horticulture and non-horticulture produce. The general areas get 35% grant-in-aid, and the hilly regions 50%. The processing infrastructure includes deep freezers and frozen storage grant-in-aid for general areas at @50% and hilly regions @ 75%. The same is available for irradiation facilities. Rs. 10 crore is the grant-in-aid maximum for each project.
- National Horticulture Board (NHB) promotes assistance to set up the infrastructure of cold storage. NHB ascertains compliance with standards as per technical scrutiny. They offer @35% and 50% respectively for cold storage above 5000 up to 10000 MT.
- NHM (National Horticulture Mission) offers assistance as a subsidy to projects credit linked as per capital cost. NHM is a MIDH sub-scheme.
- APEDA (Agricultural and processed food products export development authority) develops industries as a strategy to schedule products. The monetary benefit APEDA offers custom duty exemption.
- FDI (Foreign direct investment) noticing much boom in the cold chain sector facilitates the cold chain infrastructure growth. Under FDI, US$100 is the minimum investment mandatory offering 50% at least investment as back-end infrastructure.
These programs focus on agriculture market development. Here are a few subsidies for cold storage facilities:
- The Indian government gives credit of 35% to the cold storage facilities for general areas as subsidy capital. The credit for the scheduled and hilly areas is 50% of the project’s total cost as a subsidy.
- The units of cold storage less than 250 MT are Rs. 8000/ MT as the cost norm. The cold storage above 250 MT unit is Rs 10000/ MT.
- The cold storage featuring add-ons technology and the controlled temperature gets a subsidy of Rs. 10000 MT.
The focus is on ‘What are the subsidies available for cold storage in Andhra Pradesh.’There are subsidies available from the Indian government and bank also gives financial assistance. There is scope for cold storage business in Andhra Pradesh.
Contact NSSPL, they have decades of experience. They are aware of taxation and subsidies. Get their vast knowledge to help you set up cold storage in Andhra Pradesh.