India is a tropical country and climate varies from one part to other part of the Country throughout the year. Rains, which are a major source of irrigation, are also irregular. Floods affect some parts of the country every year and others have to face draught. Both the situations effect food production adversely. Due to this, importance of food preservation in the country has been increased. The cold storage is the most important and effective method of food preservation.

Change in Eating Patterns: Since last few years, eating patterns in India are changing very fast. Earlier, use of Vegetables and Fruits was very low in comparison to developed countries. As per Medical Association, per capita consumption of Fruits and Vegetables is much lower than minimum essential requirement. Efforts are being made for increase in per capita consumption of Vegetables and Fruits. This will also increase the requirement of Cold Storages.

Earlier, vegetables and fruits were used in the seasons of their production. Now a days, demand of the Vegetables and Fruits are for whole of the year. This is possible only with the help of Cold Storages.

Traditional items for Cold Storage: Traditionally items to be stored in Cold Storages are Potato, Gud, Mirchi, Vegetables, Fruits, Dry Fruits, Khopra and other items.

New items for Cold Storage: Due to advantages of assured preservation and no weight loss, now Chana, Haldi and other important agricultural crops are also being preferably stored in Cold Storages.

Further, because of advantages that the flavours and colour of the spices remains intact in the Cold Storages and life of the spices are also increased, number of spices dealers are also attracted towards storage of their spices at Cold Storage.

As regards the food grain, the position is being changed. Previously, food grain dealers used to store their food grain bags at warehouses but now a days some grain dealers prefer to store their food grain bags at Cold Storage because weight loss occurs in food grain bags stored in warehouses whereas no weight loss occurs if food grain bags are stored at cold storages. Further, in warehouses food grain becomes deteriorates.

2. Government Policies:

Central and State Government has accepted the viability of the cold storages all over the country, therefore they are supporting cold storage activities directly by way of providing Subsidy, Concessional Loans etc. The Food Ministry earmarked Capital Subsidy of Rs. 175 crores for the cold storage projects for the year 1999-2000. This also indicates shortage of capacity of Cold Storages and the inclination of the Government to encourage the entrepreneur to establish the Cold Storages. More subsidy is expected to be earmarked in the coming years. National Horticulture Board gives cheap loans for the establishment of Cold Storages.

3. Cost of the Project:

                                         	 (Rs. in lacs)
	SNo.	Particulars				Total
	1.	Land					17.82
	2.	Building Factory		       158.44
	3.	Plant & Machinery	 		83.93
	4.	Misc. Fixed Assets			14.80
	5.	Preliminary & Preoperative expenses	 6.57
	6.	Working Capital Margin	  		 0.50
						Total  282.06

4. Means of Finance:

	SNo.	Particulars				Total
	1.	Share Capital				45.00
	2.	Subsidy					50.00
	3.	Term Loan	   		       167.06
	4.	Unsecured Loans				20.00
						Total  282.06

4000 Sq. Mtrs. land is required in the present project. The cost of land has been taken as Rs. 400 per sq. mtr. The main expenditure in this project is in buildings which has been estimated to be Rs. 158.44 lakhs. About 29,500 sq. ft. 13" thick brick wall construction and 13,500 sq. ft. 9" partition wall construction has been considered in the building. About 86,000 sq. ft. insulation of glass wool and 62,500 sq. ft. insulation of thermacol has been considered. In the RCC work about 3.30 lakh cft. of plain cement concrete, columns, beams, roofing and reinforcement have been considered.

6. Installed Capacity: 120,000 Bags

7. Technology and Plant & Machinery Suppliers:

8. Raw Materials and Utility:

	1. Salt				5000 Kg.
	2. Ammonia Gas 			2500 Kg.
	3. Total Connected Load		230 H. P. 
	4. Water from own Tube well has been considered 

	S.No.	Particulars			1st Yr	2nd yr	3rd year
	1.	Capacity Utilisation in % 	   65      75	    80
	2.	Sales				85.80	99.00	105.60
	3.	Cost of Production			
	  (i)	Raw Materials			 0.65	 0.75  	  0.80
	  (ii)	Utilities			15.89	18.33	 19.56
	  (iii)	Wages & Salaries		 4.32	 4.54	  4.76
	  (iv)	Repairs & Maintenance		 3.46	 3.63	  3.81
	  (v)	Administrative Exp.		 3.06	 0.21	  3.37
	  (vi)	Depreciation			17.22	17.22	 17.22
	  (vii)	Interest			22.66	25.40	 21.91
		Total Cost of Production	67.25	73.08	 71.43
	4.	Operating Profit		18.55	25.92	 34.17
	5.	Other Income			 0.00	 0.00	  0.00
	6.	Net Profit before Taxes		18.55	25.92	 34.17
	7.	Taxation			 0.00	 0.00	  0.00
	8.	Profit after Tax		18.55	25.92	 34.17