NHB Subsidy for Cold Storage 2024: Up to 50% Capital Support Guide

The National Horticulture Board (NHB) continues to offer significant financial incentives for the development of commercial horticulture and post-harvest infrastructure through its flagship capital investment subsidy scheme. For Indian SMEs and agribusinesses, this represents a crucial opportunity to offset the high capital costs associated with cold storage construction and modernization. Under the current operational guidelines of the NHB, eligible projects can receive a credit-linked back-ended subsidy ranging from 35% to 50% of the total project cost. The higher 50% bracket is typically reserved for Hilly and Tribal areas, while the standard 35% applies to other regions. It is important to note that the subsidy is capped at a specific ceiling depending on the storage capacity in metric tons (MT). ## What this means for exporters For horticultural exporters, leveraging this NHB scheme is vital for maintaining the cold chain integrity required for international markets. As per the NHB Scheme Guidelines, applicants must ensure their project follows technical standards prescribed by the board. To avail of the benefit, businesses must secure a Letter of Intent (LOI) before the commencement of the project and ensure the loan is sanctioned by a recognized financial institution. Documentation regarding land ownership and technical feasibility is mandatory for a successful application. We recommend that manufacturers and exporters audit their storage requirements early in the fiscal year to align with the budgetary allocations of the NHB.