If you’re planning a solar-powered cold storage facility, you’re likely looking at a significant investment — anywhere from ₹35 to ₹1 Crore+ depending on capacity. The good news: the Agriculture Infrastructure Fund (AIF) can meaningfully reduce your cost of capital.
Here’s what it is, who qualifies, and how Techedge has helped clients navigate the process.
What is the Agriculture Infrastructure Fund (AIF)?
AIF is a Government of India scheme launched in 2020 to finance post-harvest infrastructure and community farming assets. It offers:
- 3% interest subvention on loans up to ₹2 Crore per project
- Credit guarantee coverage through CGTMSE (for loans up to ₹2 Crore)
- Loan tenure up to 7 years
For a ₹35 lakh solar project, a 3% subvention on a term loan saves you approximately ₹70,000–₹90,000/year in interest — ₹5–6 Lakhs over the loan tenure.
Who Can Apply?
AIF is open to:
- Farmers, FPOs (Farmer Producer Organisations)
- PACS (Primary Agricultural Credit Societies)
- Agri-entrepreneurs and startups
- Private companies and individuals investing in agri-infrastructure
Cold storage facilities, pack-houses, and solar systems for post-harvest use are eligible projects.
What Projects Are Covered?
Under AIF, eligible infrastructure includes:
- Cold storage and warehouses — including refrigerated storage for perishables
- Solar power systems — when used to power eligible agri-infrastructure
- Sorting, grading, and processing units
- Primary processing centres
A solar hybrid system that powers a cold storage facility qualifies under two angles: the cold storage itself, and the solar system supporting it.
How to Apply: Step-by-Step
Step 1 — Prepare your DPR (Detailed Project Report) This is the most critical document. It must include project cost, technical specifications, expected output, and financial projections. Techedge prepares DPRs for solar components of such projects.
Step 2 — Apply through the AIF portal Visit agriinfra.dac.gov.in. Create an account, fill in project details, and upload the DPR.
Step 3 — Bank sanction The portal routes your application to a participating bank (SBI, Nabard-linked banks, etc.). The bank appraises and sanctions the loan.
Step 4 — Subvention applied Once the loan is disbursed, the 3% interest subvention is applied automatically — the government pays it directly to the bank on your behalf.
What Techedge Does
We helped our client in Bilekere Hobli, Mysuru set up an 80 MT solar hybrid cold storage facility. Our involvement covered:
- DPR preparation — technical and financial documentation for bank and AIF submission
- Solar system design and installation — 30 kWp hybrid system with battery backup
- Liaison with RINAC for the cold storage equipment
- Post-installation support — monitoring and documentation
The project was commissioned in September 2024. The client is now saving approximately ₹98,000/month — between solar generation and DG elimination.
Key Things to Watch Out For
- DPR quality matters — a poorly drafted DPR is the most common reason for delays in bank appraisal
- Subsidy timelines — AIF sanction typically takes 30–60 days after application; plan your project timeline accordingly
- Solar system must be captive — the solar power must be used on-site for the agri-infrastructure, not for export
Thinking of Building a Solar Cold Storage?
Start with a site survey and a conversation. We’ll walk you through the full process — system sizing, DPR, AIF filing, installation, and commissioning.