Presentation for Pre-bid meeting on Scheme for Cold Chain, Value Addition & Preservation Infrastructure of 11th Plan

(29.07.2010)

About the Scheme

i. The objectives of the scheme are: To provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer. To enable linking groups of producers to the processors and market through well equipped supply chain and cold chain The scheme has the following components: i. Minimal Processing Centre at the farm level and this centre is to have facility for weighing, sorting, grading , waxing, packing, pre-cooling, cold storage, normal storage and IQF (all components are not mandatory). Mobile pre-cooling vans and reefer trucks. Distribution hubs with CA chambers/cold storage /Variable Humidity Chambers, Packing facility, CIP Fog treatment, IQF and blast freezing (all components are not mandatory).

ii.

ii. iii.

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To avail financial assistance, any two of the components, from (i), (ii) & (iii) above will have to be set-up by the applicants. Considering the functional nature of the facility, Irradiation facility can be treated as a stand alone one for the purpose of availing grant.

Value addition Centres may also include infrastructural facilities including processing / multi-line processing / collection centres, etc. for horticulture including organic produce, marine, dairy, meat and poultry, etc.
Irradiation facilities may also cover warehousing, cold storage facilities etc. for storage of raw material and finished products for efficient utilization of the facility.

Pattern of Assistance
Financial assistance (grant-in-aid) of 50% the total cost of

plant and machinery and technical civil works in General areas subject to a maximum of Rs. 10 Crore.
75% for NE region and difficult areas (North East including Sikkim and J&K, Himachal Pradesh and Uttarakhand) subject to a maximum of Rs. 10 Crore.

Pattern of release of grant

(a). 1st instalment of 25% of the total grant will be released after
ensuring that 25% of the promoters contribution and 25% of the term loan has been spent on the project. (b). 2nd instalment of another 50% of the total grant will be released after ensuring that utilization of first instalment of grant and 75% of promoters contribution and 75% of term loan have been spent on the project. Utilization certificate of the first instalment shall be submitted by the promoter at the time of making claim for the second instalment. (c). 3rd and final instalment I.e. remaining 25% of the grant will be released after ensuring that the utilization of the second instalment and 100% of promoters contribution and 100% of term loan has been invested on the project and the project has achieved completion and commercial operation has started. Utilization certificate of the second instalment shall be submitted by the promoter at the time of making claim for the 3rd and final instalment.

The implementation schedule for the project would be about 18 months from the date of the approval of each project.

PROCEDURE OF SELECTION AND APPROVAL

Applications will be invited through EOI. The following criteria will also be adopted while scrutinizing the applications under the scheme: (a) No second proposal from the same applicant / company. (b). The applicant must have net worth of atleast 1.5 times of the grant amount applied. (c). Proposals having suitable land with necessary conversion will be given preference. (d). The applicant should have proven track record of food processing, value chain, and cold chain logistic management.

Continue.. (e). The proposals should indicate the credentials of the promoters, availability of land, tentative business plan and other related details alongwith viability of the project

(f). The proposal should have a DPR having broad contents as detailed in enclosure to this EOI Notice (template of DPR) duly appraised by bank / financial institution with sanction of term loan from bank, if any.
(g). All the proposals received through EOI under the scheme will be scrutinized from technical angle by a Technical Committee (TC)

(h). The proposals will be placed before Committee (AC) for consideration and approval

Approval

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The applicants who had submitted their proposals under 10th Plan scheme components of cold chain facilities, value added centre & irradiation facilities and 11th Plan scheme of cold chain, value addition and preservation infrastructure which are pending with this Ministry have to apply afresh keeping in view the revised operational guidelines of 11th Plan scheme for cold chain, value addition and preservation infrastructure. The proposals /EOIs should be accompanied by two separate demand drafts, one of Rs. 1.00 lakh (rupees one lakh)as a refundable security deposit and another of Rs. 10000/- (Rupees ten thousand ) as nonrefundable cost of bid document drawn in favour of Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi, payable at New Delhi.

The Ministry reserves the right to reject any /all applications without assigning any reasons thereof.
The proposals/ EOIs should be submitted by 5.00 P.M. on or before 31.08.2010

TEMPLATE of DPR
1. 2. Name of the company / firm with details of registration no. of company / firm alongwith names of the directors. PROFILE/ BACKGROUND OF THE PROMOTERS : (Details of promoters, in descending order of proposed shareholding in existing/proposed company / firm). Existing Business Operations of promoters : (Details of promoters, in descending order of proposed shareholding in existing/proposed company / firm). EXISTING CREDIT PROFILE OF PROMOTERS : (Details of promoters, in descending order of proposed shareholding in existing/proposed company / firm). PROFILE OF PROPOSED PROJECT: (a) Detailed description of the proposed project. (b) Land Details. (c) Proposed Activities. (d) Infrastructure to be created (Distribution centres/CA/Modified Chambers/ Warehouses etc.) (e) Utilities Requirement.

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4.

5.

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6. 7. OTHER DETAILS. Proposed Project Financials : (a) Estimated Project cost details. (b) Means of finance. (c) Basic Revenue Projections. (d) Financial parameters: (i) IRR; (ii) BEP; (iii) DSCR; (iv) DER; DOCUMENTS TO BE ATTACHED : (i) Net Worth of the Promoters Certified by Chartered Accountant; (ii) P&L A/c for last three years in case of existing business operations; Affidavit in given format (copy enclosed). Description of forward / backward linkages.

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10 Note on its likely impact on farmers. 11. USP of the applicant.

Other requirements:

Technical Standards:
The following Technical Standards prescribed by NHB for fruits and vegetables are required to be adhered (website: http://nhb.gov.in). (i) Multi-commodity cold storages for long term storage of products which do not require pre-cooling and are meant for storing specific products. (ii) Multi-commodity cold storages for short term and long term storage of products which require pre-cooling and varying storage requirements. (iii) Control Atmosphere (CA) storages. Information in prescribed Basic Data Sheet accompanied by requisite documents (Basic Technical Data Sheet Available in NHB website www.nhb.gov.in under all Technical Standards for Cold Storage Type-01, 02 & 03 )

Certificate of approval of the building plan by local planning authority,

Copy of latest Record of Right issued by competent authority showing applicants right on land Copy of permission to use land for cold storage purposes

Illustrative Criteria for Assessment of Proposals received through EOI

S. No. 1. Criteria Points

Viability - Adequate volume of raw materials - A wider mix/variety of raw materials - Agreements /arrangements of raw materials such as backward / forward linkages

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2.

Proposal investment in core processing facilities / distribution hub / value addition centre / multi chamber & multi product cold storage facilities Proposed investment in minimal processing centre / farm level infrastructure Proposed investment in collection centres at farm level including refer / cooling transport Employment generation Leveraging of investment in the project Adoption of modern technology such as CA / MA storages, packing facilities, IQF etc. Total

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3. 4. 5. 6. 7.

15 10 5 5 15 100

THANKS