13thNovember, 2013Ministry of Food Processing IndustriesGovernment of India
MINISTRY OF FOOD PROCESSINGINDUSTRIESWELCOMESTHE PROMOTERSOF NEWLY APPROVEDCOLD CHAIN PROJECTS
To develop integrated cold chain and preservation infrastructure, MoFPI launched cold chain scheme in 2008.ObjectiveTo 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 chainTo establish value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc.
Eligible Project Components:Minimal processing Centre at the farm with facilities such as weighing, sorting, grading waxing, packing, pre-cooling, Controlled Atmosphere (CA) / Modified Atmosphere (MA) cold Storage, normal storage and IQF.Mobile pre-cooling vans and reefer trucks.Distribution hubs with multi product and multi CA/MA chambers, cold storage/ Variable Humidity Chambers, Packing facility, CIP Fog treatment, IQF and blast freezing.Irradiation facilityTo avail financial assistance, any two of the components, from (a), (b) or (c) above will have to be set-upIrradiation facility is treated as a stand alone one for the purpose of availing grant.
1st installment of 25% of the total grant25% of the promoter’s contribution and 25% of the term loan has been spent on the project.2nd installment of another 50% of the total grantUtilization of first installment of grant.75% of promoter’s contribution and 75% of term loan have been spent on the project.3rd and final installment of remaining 25% of the grantUtilization of the second installment.100% of promoters contribution and 100% of term loan has been invested on the projectProject has achieved completion and commercial operation has started.
Submission of acceptance to the terms & conditions of theapproval letter – 1 MonthSubmission for documents for the release of 1stinstallment of grant – 9 monthsCompletion of project – 18 months
Change Land Use (CLU) permissionConsent to establish from Pollution Control BoardNoC/ Approval from Town and Country Planning Department/ concerned civil authority for building plansConsent to operate from Pollution Control BoardRegistration with FSSAI, WarehousingDevelopment & RegulatoryAuthority(WDRA),etc.Permission for ground water use, if requiredSanction of electrical connection and water connection from competent authorityAny other license, permission, etc., as applicableThe applicants are advised to apply/ get the above approvals simultaneously during the implementation period to avoid delay in release of grant
1stGrant Installment RequisitionSurety Bond:Incorrect grant amount and lack of details on approved locations, components and Capacities . Confirmation of facilities should be added as annexure.Board Resolution as annexure should have a specimen signature of the authorized signatoryIncorrect language of affidavitconfirming that the proposed project had not started commercial production / operation prior to the date of submission of application. It should also be duly notarized.Incorrect CGA Registration- Controller General of Accounts (CGA) registration should have agency type “private sector companies” and scheme name “Scheme for infrastructure development FPI (0386)”
Incorrect CA Certificate:Photocopy of CA Certificate. Original is required.Incorrect approved/ appraised project cost detailsIncorrect approved/ appraised means of financeDetails of cost of P&M/ TCW not matching with that given in the CE (Civil ) or CE(Mechanical) CertificatesAdvance payments made not indicated separatelyCertificates not countersigned by the promoterInsufficient mention of due diligence done for the project cost verification such as verification of books of accounts, bills, invoices, etc.
Incorrect CE (Civil) Certificate for Civil Work:Photocopy of CE (Civil) Certificate. Original is required.Certificate from Architect instead of CE (Civil)Approved/ appraised item wise TCW dimensions and cost details not givenIncorrect approved/ appraised item wise TCW dimensions and cost detailsDetails of cost of TCW not matching with that given in the CA CertificateActual item wise progress/ specifications/ quantity not shown in the certificateAdvance payments made not indicated separatelyNo comments on the quality of the civil work and names of suppliers, etc.Not countersigned by the promoter
Incorrect CE (Mechanical) Certificate for P&M:Photocopy of CE (Mechanical) Certificate. Original is required.Approved/ appraised item wise P&M specifications/ capacities and cost details not givenIncorrect approved/ appraised item wise P&M specifications/ capacities and cost detailsDetails of cost of P&M not matching with that given in the CA CertificateActual item wise progress/ specifications/ quantity not shown in the certificateAdvance payments made not indicated separatelyNo comments on the quality of the P&M and names of manufacturers, suppliers, etc.Not countersigned by the promoter
Details of unsecured loan (along with PAN numbers of lenders:Not certified by CAPAN Numbers of lenders not mentionedNot countersigned by the promoterBank Certificate and Consent Letter:Mismatch of disbursed amount from that mentioned in the means of finance of CA certificateRecommendation/ consent not given by Bank for disbursement of grant through the bank accountNot providing details of Current Account of the applicant where the grant is to be transferred.Term loan account given as the desired account for grant transfer
Land Documents:Required for the main locations/ (s) before the release of 1stinstallment of grantNon notarized or photocopy of notarized land documents submittedEnglish version not submittedLease period less than 15 yearsMany times CLU not submittedBank Statements & Receipts, in case of advance payments:Bank statement does not indicate the name of the suppliers, etc. Payments are also not highlighted.Index/List of invoices including amount and supplier names not included.Format of GFR 209-(1) for regarding receipt of grant:Incorrect language/ format usedNon notarized affidavit submitted
Undertaking to meet gap in means of finance:Not submitted on non-judicial stamp paper of not less than Rs. 100/-Non notarized affidavit submitted
2ndGrant Installment RequisitionCA , CE Certificates and Bank Certificates:Same as 1stinstallment of grantUtilization Certificate of the 1StInstallment of the grant:Wrong format used (instead of GFR 19-A)Not countersigned by promoterIncorrect approval letter number and figures givenLand Documents:Documents foratleast75% of the locations of CollectionCentres/ BMCs/ distribution outlets to be submittedSame issues as the land documents of the main facility(s) during the release of 1stinstallment of grant
2ndGrant Installment RequisitionBank statements showing payment made to suppliers/ vendors:Bank statement does not indicate the name of the suppliers, etc. Payments are also not highlighted.Invoices/receipts from the suppliers/vendors:Index/List of invoices including amount and supplier names not included.
3rdGrant Installment RequisitionCA , CE Certificates and Bank Certificates:Same as 1st& 2ndinstallments of grantUtilization Certificate of the 1StInstallment of the grant:Same as 2ndinstallment of grantLand Documents:Documents for remaining 25% of the locations of CollectionCentres/ BMCs/ distribution outlets to be submittedSame issues as the land documents of the main facility(s) during the release of 1stinstallment of grant
Letter confirming commencement of commercial operation by the projectDate of commencement of commercial operation not mentionedStatutory licenses / clearances as mentioned earlierMany times statutory licenses/ clearances not submittedSometimes the applicant applies for the same only after direction from the Ministry which causes delayExpired/ invalid documents are submitted
Bank statements showing payment made to suppliers/ vendors:Same as 2ndinstallment of grantInvoices/receipts from the suppliers/vendors:Same as 2ndinstallment of grant
In case of change in project cost, means of finance, facilities/ capacities, land/locations, constitution of the applicant entity, etc.Prior approval from the Ministry needs to be obtainedBefore seeking approval from the Ministry, the changes should be endorsed by the lending bankJustification for the changes should also be submitted to the MinistryIn case of change in project cost or facilities/ capacities, comparative item wise cost breakup for approved components/ costs (both TCW and P&M) and the revised components/ costs (both TCW and P&M) should be submitted duly certified by the bank
In case of change of Bank, project appraisal report from the new bank should be submitted.In case of change in means of finance, the bank must endorse it with the statement that viability of the project is not affected.Pl. note that in case of changes in the project components, grantshall notbe given for any new components added. However if the capacities of approved facilities are reduced or the approved components are dropped, the grants approved against that component shall be reduced or withdrawn.
Timely implementation of the approved projectTimely & properly submission of documents for release of grants.Keep the ministry updated about change in contact details, project components, bank, etc.Timely submission of status report, details, clarifications, documents asked for.Attending the review meetings called by the ministry.Promptly responding the letters, email, and phone calls from the ministry