BHUBANESWAR : To tide over the scarcity of essential commodities like potato and prevent distress sale of harvested crops, the Odisha government on Wednesday came up with a scheme to encourage private entrepreneurs to set up at least one cold storage in each of the 58 sub-divisions of the state.
The state cabinet chaired by Chief Minister Mohan Charan Majhi approved a proposal of the Agriculture and Farmers’ Empowerment department for extending support in shape of capital investment subsidy, interest subvention and electricity subsidy for a period of five years from 2025-26 to 2029-30 under the scheme entailing a cost of Rs 252 crore.
Announcing the scheme ‘Financial assistance to cold storages’ at a media briefing after the cabinet meeting, the chief minister said, the scheme aims to enhance income of farmers by way of establishment of cold storages in uncovered and economically-feasible locations.
“It will provide better market opportunities, value-addition and processing of agriculture, horticulture and allied sector commodities, address post-harvest losses and prevent distress sale of harvested crops,” he added.
Detailing about the pattern of assistance for new cold storages, Majhi said the cabinet decided to provide capital investment subsidy of 60 per cent of the fixed capital expenditure limited to Rs 6.50 crore or whichever is lower to entrepreneurs belonging to scheduled categories, women and transgender.
Subsidy to other beneficiaries will be 50 pc of fixed capital expenditure limited to Rs 6 crore or whichever is lower.
The beneficiaries will get interest subvention up to 6 pc - 3 pc through the Agriculture Infrastructure Fund (AIF) of the Centre and additional 3 pc as top up from the state government.
In another major move, the government extended the working capital support to cold storage units under Chief Minister’s Scheme for Reimbursement of Interest to MSMEs (CM-SRIM) which only covered MSME manufacturing units of the state.
The CM said promoters of cold storages will now be entitled to reimbursement of interest paid by them to banks on working capital loans availed from banks similar to the provisions under CM-SRIM scheme of MSME department.
The slab limit for reimbursement of interest paid will be 100 pc up to `10 lakh while it will be 75 pc above Rs 10 lakh up to Rs 50 lakh. The reimbursement will be 50 pc of interest paid above Rs 50 up to Rs 1 crore and 25 pc of the interest between Rs 1 crore to Rs 5 crore.
The cabinet also approved power tariff subsidy at the rate of 50 pc on total electricity bill which will be given for a maximum period of seven years from the date of commencement of new cold storage units. In case of existing operational units and units that may be revived in future, the electricity tariff subsidy will be paid for a maximum period of 7 years.
The CM announced a special financial assistance up to maximum Rs 1.5 crore in case of non-functional units willing for revival. The special financial assistance will be considered in case to case basis, will be given only towards arrear electricity dues, taxes, bank dues and such other statutory and non-statutory dues to be paid to the government or public utility service providers.