New Andhra Pradesh Food Processing Policy 2024-29 is the present active policy for Food Processing industry. For details click here

APFPS - Cold Chain

The objective of the scheme is to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer from the production site to the market. The scheme helps linking groups of producers to the processors and market through well equipped supply chain.

Pattern of Assistance

The scheme provides assistance in the following forms.

1. Grant-in-aid:
• 35% of bank appraised project cost
• Maximum Cap of Rs. 5 Crore


2. Interest Subsidy:
• 7% interest subsidy per year
• For 5 years from date of completion
• The benefit is directly transferred to the lending bank
• Maximum cap of Rs. 2 Crore

Release of Grant

1. 1^st installment of 25% of the total grant under the scheme will be released after ensuring that 25% of the promoter’s contribution and 25% of the term loan has been spent on the project.
2. 2^nd installment of 50% of the total grant may be released by the competent authority based on submission of the documents on utilization of the first installment of the grant released and also the utilization of 75% of the Term Loan and 75% of the promoter’s contribution.
3. 3^rd and final instalment of the grant may be released by the competent authority based on submission of the documents specified below by the unit the first and second instalment of the grant released and also the utilization of 100% of Term Loan and 100% of Promoter’s contribution.
4. Release of Interest subvention: released for every 6 months after completion of every half-year i.e., 31st March for first half year and 30th September for second half year for 5 years from the date of Commercial production

Eligible Components of the Scheme

The Scheme will have the following components:

1. Minimal Processing Centre at the farm level with facility for weighing, sorting, grading waxing, packing, pre-cooling, Control Atmosphere (CA)/ Modified Atmosphere (MA) cold storage, normal storage and Individual Quick Freeze (IQF)
2. Mobile pre-cooling vans and reefer trucks
3. Distribution hubs with Control Atmosphere (CA)/ Modified Atmosphere (MA) chambers/ cold storage/ Variable Humidity Chambers, Packing facility, Cleaning in Process (CIP) Fog treatment, Individual Quick Freeze(IQF) and blast freezing
4. Irradiation facility.

Eligible Sectors under this scheme

Following industries are eligible to be covered under the scheme:

1. Horticulture- All fruits & vegetables products etc
2. Agriculture - Agri. Products
3. Dairy– All milk and milk products, etc.
4. Meat– All meat and meat products etc.
5. Any other horticultural & agricultural food products requiring integrated cold chain.

Important to Remember

The Govt. will have the authority to recall the grant:

1. If the project is not completed in time within the approved project period.
2. If the project is not completed even within the extended project period approved by competent authority.
3. If the institute / organization become non-functional or said activity / organization is closed before 6 years from the date of Commercial operations.
4. If the unit shall not submit the Audited reports of every financial year for a period of 6 years, within 4 months from completion of respective financial year.

Our Unique Services

1. Preparation of Detailed Project Reports (DPR)
2. Layout Drawings
3. Facilitating various permissions required from various Govt. Departments
4. Error free application processing for various subsidies and incentives
5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
6. Advisory on Purchase of Machinery / Technology and Civil works