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 COLD STORAGE
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6. PROMOTER'S PROFILE
The promoters can be individuals, group of individuals, cooperative societies, proprietary/ partnership concerns and joint sector companies in public or private sector. While formulating a project, complete details of the promoter(s), their experience in the activity and net worth, etc. have to be incorporated.
7. PHYSICAL AND FINANCIAL OUTLAY
The following physical provisions with their costs are considered for a cold storage unit:
1) Land
2) Site development including levelling, fencing, road, drainage, etc.
3) Civil structures including main cold storage building, rack provisions, drying shed, machinery room, store for consumables, generator room, office, security cabin, etc.
4) Insulation of main cold store building
5) Machinery for cooling, air movement, loading, grading and weighing
6) Electric supply arrangement including installation of transformer and deposits
for requisite connection
7) Standby electric supply arrangement / DG set
8) Water supply arrangement and treatment plant, if required
9) An ice manufacturing plant to utilize the recycled water and earn additional income
10) Pollution control and waste disposal equipment
11) Miscellaneous fixed assets including office equipment and furniture
11) Preliminary and preoperative expenses
12) Contingency
8. GENERAL LENDING TERMS
A) ELIGIBLE BORROWERS/ INSTITUTIONS FOR REFINANCE
The advances made to individuals, group of individuals, cooperative societies, proprietary/ partnership concerns and joint sector companies by CBs and SCBs for cold storage units chain are eligible for refinance from NABARD. Besides this, the advances granted to individuals for cold storages and allied purposes granted by SCARDBs are also eligible for refinance from NABARD.
B) MARGIN MONEY
A margin money of 15% to 25% of the project cost is normally insisted upon depending upon the status and financial health of a borrower.
C) RATE OF INTEREST
The rate of interest on agricultural advances for various limits are applicable for cold storage.
D) REPAYMENT PERIOD
Repayment period is fixed upon the financial analysis of cash flow for each and every project and in general a repayment period of up to nine years is allowed including a grace period of one year.
E) SECURITY
For limits upto Rs.50,000/- hypothecation of assets created out of bank finance.
Above Rs. 50,000/- hypothecation of assets created out of bank finance and mortgage of property and /or third party guarantee of adequate work.
F) INSURANCE
Assets created out of Bank finance, assets hypothecated/mortgaged to the Bank to be fully insured with Bank clause. Since the products stored within the cold storage are liable to decay on account of machinery breakdown, the borrower would be well advised to explore obtaining machinery breakdown policy also.
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