Subsidy under the scheme shall be provided on the capital cost of the project and the rate of subsidy shall be as follows

25% of the capital cost of the project where the beneficiaries are farmers, agri-graduates, co-operatives, Central/State Ware Housing Corporations;

15% in case of individuals, Companies & Corporations;

33.33% In case of North-Eastern States, hilly areas and in cases where the entrepreneur belongs to SC/ST

Minimum size of the godown eligible for subsidy would be 100 MTs.

Capital cost of the project for the purpose of release of subsidy under the scheme shall be calculated as follows:

  • For godownsupto 1000 tonnes capacity – actual cost or Rs.2000 /- per tonne of storage capacity, whichever is lower.
  • For godowns exceeding 1000 tonnes capacity – actual cost of Rs.1500/- per tonne of storage capacity, whichever is lower.
  • For renovation / expansion of godowns constructed by cooperative with the assistance from NCDC – actual cost or Rs.500 per tonne of storage capacity whichever is lower.

Amount of subsidy calculated as above shall be further restricted to a maximum storage capacity of 10,000 MT and further to a maximum amount of Rs.37.50 lakhs for each project. In the case of, N-E states and hilly areas and for entrepreneurs belonging to SC/ST, maximum amount of subsidy shall be Rs.50 lakhs for each project. There will, however, be no such ceiling in respect of renovation / expansion of godowns already constructed by the cooperatives with assistance from NCDC.

Subsidy for the projects under the scheme shall be released through NABARD for projects financed by the commercial, cooperative and Regional Rural Banks, ADFCs, Scheduled PCBs, NEDFI and other institutions eligible for refinance from NABARD and through NCDC for projects financed by the NCDC.

The capacity of godown shall be calculated @ of 1.8 MT per sq.mt. of floor area with an average height of not less than 4.50 meters.

Subsidy will be released in two instalments.

  • 50% of the subsidy amount will be released to NABARD by DAC in advance. Accordingly, NABARD would release subsidy to the participating banks in advance for keeping the same in the Subsidy Reserve Fund Account of the concerned Borrower, to be adjusted finally against loan amount of the bank on completion of the project. This amount of 50% advance subsidy would be released by NABARD to the participating banks on submission of a project profile cum claim form.
  • The remaining 50% of the subsidy amount would be disbursed to the participating bank(s) by NABARD, after conduct of an inspection by the Inspection Committee consisting of Officials from NABARD, participating banks(s) and DMI in the concerned State.


- Other than north easternStates& hilly areas Individuals, Companies and Corporations in areas other than NE States/Hilly areas In North-eastern states &Hilly areas *And for SC/ST
**Owner’s Contribution 25% 25% 20%
Subsidy from the Govt. 25% 15% 33.33%
Institutional loan from Commercial / coop. Banks etc. 50% 65% 46.67%

Where the project site is located at a height of more than 1000 meters above mean sea level.

Cost of land not exceeding 10% of the project cost can form part of the owner’s contribution. NCDC will follow their existing pattern of assistance