With majority of cold storages dysfunctional in the State for storage of perishable agrarian produce, the state Cabinet on Wednesday approved the proposal to extend fiscal assistance, subsidy and interest subvention to entrepreneurs for establishment of such facilities in each of the 58 sub divisions in the State.

Over 64 per cent of cold storages functioning in the State in the past years are currently in dysfunctional state resulting in the surplus vegetables, fruits and other perishable agrarian produce going into waste.

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There are a total of 123 cold stores in Odisha, of which 79 are not functioning. Of the 44 functional cold storages, the Agriculture Department runs four of them with storage capacity of 4,000 metric tonnes.

As many as 13 districts in the State do not have cold storage facilities resulting in the surplus vegetables, fruits and other perishable agrarian produce going into waste.

The scheme “Financial Assistance to Cold Storages” is introduced with an objective to strengthen cold storage facilities and infrastructure, to establish at least one cold storage in each of the 58 sub-divisions of the state to encourage private entrepreneurs to set up cold-storages in hitherto uncovered and economically feasible locations, an official statement issued today said.

The Scheduled Caste, Scheduled Tribe, transgender and women beneficiaries besides the beneficiaries from scheduled areas will be extended 60 per cent Capital Investment Subsidy 60 per cent with fixed capital expenditure limited to Rs 6.50 crore, whichever is lower, it said.

The other beneficiaries are entitled to 50 pet cent of fixed capital expenditure limited to Rs 6 crore, whichever is lower.

Cold storage units will be entitled to reimbursement of interest paid by them to banks on Cash Credit Working Capital loans availed from banks similar to the provisions under CM-SRIM scheme of MSME Department.

There will be Interest subvention up to 6 per cent with 3 per cent through Agriculture Infrastructure of Centre and additional 3 per cent from the State.

The Cold storage units will be entitled to reimbursement of interest paid by them to banks on Cash Credit Working Capital loans availed from banks similar to the provisions under CM-SRIM scheme of Micro, Small & Medium Enterprises Department.

Tariff ssubsidy at 50 per cent on total electricity bill shall 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 seven years.

Instead of reimbursement (which takes months), electricity tariff subsidy will be factored in at the time of preparing the monthly bill by the electricity distribution company, who shall directly be reimbursed by the Government.

In addition to the financial and other assistance mentioned above (excepting Capital Investment subsidy), special financial assistance up to maximum Rs 1.5 crore may be considered, on a case to case basis, in case of non-functional units willing for revival.

The special financial assistance can be given only towards arrear electricity dues, arrear taxes, arrear bank dues and such other statutory and non-statutory dues to be paid to the Government or public utility service providers.

The scheme has been appraised for 5 years from 2025-26 to 2029-30 and Rs 252 crore has been provisioned for the scheme.