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Agro Policy of Rajasthan, 2019- Warehouses Centered

Government of Rajasthan has issued Rajasthan Agro-processing, Agri-business & Agri-export Promotion Policy, 2019 (Rajasthan Agro Policy) in order to make Rajasthan as a production and supply hub of processed agricultural products and a destination of choice for investors, processors and exporters. The scheme covers many aspects relating to agriculture.

We have covered scheme benefits and conditions applicable only to construction of warehouses in the state in this post. The article talks about all things relevant to warehouse in Rajasthan Agro Policy.

Construction of warehouses has been covered under the sub heading of “Infrastructure Projects” in the list of Eligible Sectors in the policy.  

Benefits available:

(to persons other than farmers or their organization)

SubsidyCalculationMaximum amount
Capital Investment Subsidy  25 % on exp incurred on P&M and Technical Civil Work.50 Lacs
Interest SubsidyOn Term Loan @ 5% for max period of 5 years or till repayment of Term Loan.100 Lacs
Additional Interest Subsidy
(not available if project is sanctioned for capital subsidy)
Additional 1% to
100% ownership of SC/ST or women and young entrepreneurs below 35 years
Unit in TSP or backward districts.
Electricity tariff/ Solar Energy Subsidy
(if availing capital subsidy)
Reimbursement of Tariff subsidy at Rs. 1.0 per kWh for 5 years
Additional capital subsidy of 30% of cost of solar plant.
2 lacs per year      
10 Lacs

Considerations for Warehouses:

  1. Maximum admissible cost: Rs. 3000 per MT.
  2. Calculation of capacity of warehouses:
    • If average height 4.5 meter and above: capacity is 1.8 MT per square meter of floor area.
    • If average height less than 4.5 meter: capacity is 0.4 MT per cubic meter of storage volume.
  3. Height of warehouse will be measured from the floor level to the bottom of the truss. In case of RCC roof, height to be considered will be height of ceiling minus one meter.
  4. Warehouses are to be constructed as per Central Warehousing Corporation (CWC) or Food Corporation of India (FCI) standards. For storage of Onions, specifications prescribed by National Horticulture Research & Development Foundation (NHRDF) should be followed. (not required if capacity is less than 100 MT)
  5. Completion period: (computed from date of first disbursement of term loan)
    • Projects worth Rs. 100 Lacs: 18 months.
    • For higher investments: 24 months.
    • (Extension possible but on the condition of reduction of subsidy.)
  6. If the project is being taken on leased in land, the minimum lease period should be 10 years and the lease deed should be registered.