0109173321es 15 PDF

EX-POST EVALUATION
STUDY
ON
COLD STORAGES IN BIHAR
(2002 - 2003 )
National Bank
for
Agriculture
and
Rural Development
Patna
I FOREWORF
Perishibility is the characteristic of agriculture and horticulture products.

The volatile market fluctuation, mostly unwanted, unhealthy, is a consequence
of perishibility. Moreover, this characteristic affects adversely both the
suppliers in terms of non-remunerative income on account of distress sale
during the harvest season and higher price amidst scarcity borne by
consumers during the post harvest season. However, it is a well-known fact
that the horticulture sector has been showing promising growth as the country
ranks second in the production of fruits and vegetables in the World. In
spite of this huge production, the post harvest management of such crops is
still a limiting factor.
With the network of Cold Storage, it is possible to break the barrier of
this limiting factor. It is an investment, even though with a higher outlay per
unit, that benefits both the suppliers and consumers. Recognising the need
for the chain of cold storage, as recommended by the high level Committee
appointed by the Ministry of Agriculture during 1998, a programme of Capital
Investment Subsidy Scheme (CISS) for construction / expansion /
modernisation of cold storages was initiated by Government of India in liaison
with NABARD and National Horticulture Board (NHB). The Scheme hashelped
in the addition of around 400 Cold Storages Units with about 20 lakh MT of
storage capacity on all-India basis.In Bihar, Cold Storages have been
constructed, traditionally, for the storage of potato. Although, an earnest
effort has been initiated to diversify the use of Cold Storage in Bihar for
variety of vegetables, horticulture products consequent to recognising the
need for the creation of post harvest management infrastructure. Although
modernisation of existing Cold Storages for diversified utility and
implementation of Capital Investment Subsidy Scheme have been in operation
;n the State, its irnpact is not yet known. As such, the current study was
conducted by Bihar Regional Office Patna to assess the impact of the scheme
on value addition of farm produce, mainly potato, as also evaluate the
economics of the units financed in Bihar./fhe study was conducted in five
districts viz., Muzaffarpur, Samastipur, Vaishali, Saran and Purnea covering
one Cold Storage Unit financed in each district under NABARD's refinance
scheme. The study has brought out several positive features like the positive
role-played by the private sector in development of Cold Storages in Bihar.
(iii)
The unique feature of the study is the assessment of the impact on potato
producing farmers in the absence of Cold Storage infrastructure. The
maximum earning of potato producing farmers went up to Rs.1.17 over Rs.
1.00 s p e n t on potato cultivation in a situation where Cold Storage
infrastructure was absent. While this income increased to Rs.1.82 over Re.
1.00 spent on potato cultivation after storing 60 per cent of the stock in
Cold Storages. On an average cost of establishment of a Cold Storage of Rs.
145.60 lakh (for an average capacity of 4100 metric tone of potato), the
average net profit worked out to Rs.6.89 lakh per annum after meeting
repayment and tax obligations. Thus, the establishment of Cold Storages,
as this study has brought out, results in enormous benefit to member farmers,
cold storage owners and the public in general besides arresting wide seasonal
price fluctuations. The repayment performance of the Cold Storage borrowers
was good. / /
I am sure that the findings of the study will be quite useful for further
improvement in the implementation of Cold Storage Scheme in the State of
Bihar. Further, it will also provide insights for the implementing agencies as
well as the entrepreneurs regarding the factors that will influence the viability
of the Cold Storage Units in future.
(^^^""^^^V"---^-^
(S.C. Vasishtha)
Chief General Manager
National Bank for Agriculture and

Rural Development
Regional Office, PATNA
13 November 2003
(iv)
ycnia<Jii
^''TTcr ^ c ^ T T ^ 3fR ^3^T^lWTT3{t, " ^ ^ ^^cTT t l W^^ c f ^ ^^jfr^ ^ ^^R
vScMKch! Zf5t Hv^^^H vJdIK ipSplT ^^gcTT t 3J1R ^ eTPT^f^ STFT W<T ^ Ftrlt t c[^
^jWmrTTatf ^ ^ M N ^ cRâtf ^ 3Tm^ c^ 'W^ 3 T f ^ ^f^T^TcT ^ g ^ f ^ ^ ^ t cTSTlf^,
3fl7 ^ P ^ ^ vic^^KH ^ ^ ^ ^ ^ ^-STFT t I WfcT 3 T f ^ v3c<^KH c^ mc![^ ZfT^
^ ^^ ^ f ^ f ^ t , f^RT^ TTfcT ^ ^ ^3"^ ^Ro^^ ^ i [ w ^ , - ^ ^ sjii^Rjchdiatr sfR
^, 1998 ^ c^ H ^ j d i j ^RT ^ r f ^ ^3^^ i-^^^ i-\\A\^. ^RT ^9TT Sl^^lRnd ^ f ^ e ^

^ ^ r ^ ^ 1^FrW/Ri^TiK/3T£iPicb1cbû| ^ Tjp^ f^f^r^ ^HR'^H^ # 3 T ^ 4,14?^^ ^ T ^
%?PTr.^ 3T%eT ^ K ' d l i j ^FrR t R W^ 400 3Tf^f^c|TT c f T t e ^ ^ ^ ^ 1 ^ ^ ^ ? ^ T ^ ^ PIHIÎ
f^^^ ^ ^ R ^ f ^ R T ^ ^T^J^RT $RcTT 20 efRI {^^dp ^^ f I
t I ^raf^, ^TRf^ c f ) ^ M£T ^JR^HT ^ I ^ R W cf^ 3H|c|î|cbdl W\ ^[HH^rl f ^ f%?R ^
^ ^[^m^ ^ H^rfsrf, sIMNJ^ V3C<^KT ^ û^KU| ^ feTT^ ^fTTe^ ^ T ^ t ^ cf^ ^ ^ # T
^fR^ ^ Î^TRT f^^^ ^ 7 ^ t I ^TSrfcr, M ^ Î^f^ ^ ^3M<4Vl ^ f ^ c i d ^ N ^f^tc^
^ ^ € r ^ ^ 3TT£J,Plct51ct)û| Y T ^ ^ Tj3fr f ^ f ^ i-\[k]^ #3PfT F T ^ t , ^ ^ ^ ^ ^ n^TFI ^ 3T^
^•^l^ cfTF iêîcb^ c F ^ , ^ 2 T f r f%FR ^ RixiMlRid ^cbjîil' cf?r airfsfcf? ^^^q ^ ^ I T ^

J^c^lct^H ^?R^ ^ f ^ TT^^ a^#JT cblilldij ^RT cldHH STeERRT f ^ ? ^ ^fRTT I TTm" f^feff
^ q r , g^JFTCfR^^, ^FFRcfr^, t^TTcfr, ^FTR^ 3 f k ^^1^1! ^ STtzpRT % q T ^RTT sff^ ^ R ^
f ^ A ^TM^ ^ 5^f^ illulH! ^ SPxFtcT f ^ ^ftf^ i ^ # e ^ ^ f ^ t ^ ^ ^ ^ ^ ^
^ l i f ^ d f^^^ ^fRTT I ^ ^'S^^^ ^ ^ îcblîcHct) fcT^t^cTT ^FTFT^ 3?!^ ^ - f%FR ^
(V)
^-^ ^^vJT ^ RcbKH ^ m ^ ^ cf^ ^ i j t e r HtHcbKlcHcb ^ I ^ 3T&ZRPT ^
^^![M^ ^T? t f% ^ t e ^^"lûl ^FR^HT ^ 3T^TTc[ ^ 3TTc^ v3d^|c(ch f^^Rnpff ^T? ^^>T^ ^
êiJIcbH ^!p^Fn % I ^F^t^^ ^ - ^ 1 ^ ^ i-\i^^\ ^ 3]-H]c\ ^ S H c ^ ^ ^ M I R ZZT^T ^ o 1 ^ ^ 7 ^
3 ^ vdeMKcb f^p^^ ^ ^rft^T^FKR 3TT^ ^ o 1.17 ^ I ^JRf% ^ f f e i-<i\\^ ^ 60
yRl^ld ^=^R) ^ ^ ^ 3 ^ cf^ Îcfr ^ ^ o 1.00 ^ c 2 ^ c^ ^57^^ 3TPT sT? ^f^ ^ o 1.
82 FT ^ I ^^r^ ^ ^ ^ T-STTCPTT ^^ 3 t e T ^ o 145.60 e H ^ ^ e^^TcT . ^ (4100
f ^ ^ t ^ ^ ^ 31Tc^ ^ sfmcT ^ u ^ K U | a^TTcTT ^ fî^) nfef ^ W^ ^ ^ f M 3^? ^ R
3^^T^ ^ 6|T^ 3fRTcT "^J^ 3TFT ^ o 6.89 e ^ ^ ? ^ 11 ^ ^R^, ^f^te^ ^ ! ^ f ^ ^
^ R^cJKH t f ^ 3T?:^RT^ ^ f ^ r a ^ ^ f^r^N T [ ^ ^ ^F^tc^ ^ J ^ T ^ 4\^-\\ ^
rîiîî^H ^ 3 f k 3 T I ^ ^^117 eTT^ ^ ^H^Ndl lA^^W I ^ ^ 3^fclR<td ^f^T#^^RT^
^ f 7 ^ - q i ^ ?T2^ ^ ^ vjIMchl^ f ^ ^fT^ I
(^^~^*V^---^-
rs HciH^ 2003.
(Vi)
CONTENTS,
Foreword (iii - ix)

Acknowledgment (ix)
Credit List (xi)

List of Abbreviations (xiii-xiv)
Basic Data Sheet (xv)
Executive Summary (xvi-xvii)
Chapter I
Introduction 1-4
Chapter I I
Objective and Methodology of the Study 5-8
Chapter I I I
Characteristics and Problems of Sample Cold Storages 9-18
Chapter I V
Implementation of.the Schemes 19 - 35
Chapter V
Cost of Investment in Cold Storages 36 - 38
Chapter V I
Economics of Potato Storage 39-49
Chapter V I I
Economics of Sample Cold Storages 50-56
Chapter V I I I
Repayment Performance 57-59
Chapter I X
Summary and Conclusion 60 - 65
Photographs and Annexure at the end of the Report
(vii)
fSisra"^r^
y^-dNHI (v - vi)
3TP^ (x)
^H^Kd ^^Q^ (xii)
^Hct^diaRt ^ '^^ (xiii-xiv)
^ 3Tf^f^ ^ ^^- (xv)
^rfs^ f^TEf^ (xviii-xix)
3r»iPT I
^•jter 1-4
^rSJTRT II
3TKTPT III
^ ^ ^?rcT ^ ^ Ri^ltidii^' 3fk ^m-m^ '9-I8

arssTPT IV
ÎvjiHiSff ^ chml-xiijH 19 - 35
sre^TPT V
^ftcT ^ ^ l ^ r ^ cf^ efFTcT 36-38
3reJTFT VI
3TeirRI VIL
^ ^ ^?r^ ^ cf?r arrfsftf^ 50 - 56
3r€2TT^ VIII
^ch1c^ Plt^K^ 57 - 59
SIGJTm IX
•^TNm 3fk P|t4>tJ 60-65
^^fMnr^ ^ MRfîte
(viii)
ACKNOWLEDGMENT
The assistance and cooperation received in the conduct of the Evaluation

Study from the management of M/s DK Cold Storage, Muzaffarpur; M/s
Vaishali Sheeth Bhandar Pvt. LTD., Hahua, Vaishali; M/s Vishwanath Cold
Storage, Chhapra; M/s Massina Cold Storage, Samastlpur and; M/s Pransukha
Cold Storage, Purnea; Senior Officers of State Bank of India, Regional Office,
Muzaffarpur and Purnea; Branch Managers and officials of ADB branch,
Muzaffarpur; Hajipur branch, Hajipur, Vaishali; Rajendra College Chhapra
branch , Chhapra ; AMY branch , Samastlpur and Gulab bag branch, Purnea
of State Bank of India are gratefully acknowledged by the author. The author
also expresses his gratitude to Shri Walter Pascal, Chairman, Palamau
Kshetriya Gramin Bank (SBI), who took personal interest in coordinating
with his colleagues in the State Bank of India for a meaningful cooperation
during the field investigations. The author also expresses his gratitude to
his colleagues who showed their interest to help him in various stages of the
study. Namely, Shri Ravinder Singh, Assistant Manager (Civil Engineer), who
associated the author for the field visit during the initial two days to get the
author acquainted with all technical details of the cold storage; Shri K.
Vijayapandian, Assistant Manager, who gave valuable tips while the author
was appraising the primary (ex-post) data of the project with the help of
computer; Dr. Sriram Appulingam , Assistant Manager, shared his valuable
experience in presenting the report and incorporated all possible aesthetic
tips in the report before printing.
(ix)
dimnz
^ e i l l c h H 3TSCRPT ^ ^ ^ ^ ^ ^ ^Pr^^ ^til^vjl, g i J R ^ T R ^ , ' ^ ^ t?TTeft "^ftrT
HK^^HI cffte^ ^ - ^ W , ^HH^^^^ 3tk ^ ^ ^ ^f^^ cfflc^ ^ ^ ^ ^ , 'gf^t^, ^l^cî)
T^^ f ^ , aHt^ cbiiild-M, -g^^^TRj^ T^ gf^kr ^ c r f ^ arf^RfTr^t^m, .i^ ^ ^
y ^ ^ ^FRclT t I ^ ^ 3^frlRcW ^ c n e ^ MK<bd, 3T€Z[aT, T T C T F ^ ^ " ^ f r ^ ÎTFfr^ f ^ •^
^ 3TTHR n ^ ? ^ ^fRcTT t f^FFi^ a ^ f ^ 8 ^ ^ ^ t ^ R aTstrjTjf ^ T ^ T J ^ f ^ 3N^
^T^Tj f^TTTI c^^Sr^ 3PT^ ^ B F c f ^ f W c^ yfcT ^ STPTP? cZf^fxT cfr^m t f^T^^
^ • ^ ^ ^ c F f F M t ^Jfr^ ^ WFT^ t MRÎUIHI ^ ms^lf^ (cbmTed^) 3 T t ^ ^
(X)
CREDIT LIST
Overall Directions
Department of Economic Analysis and Research, NABARD,
Head Office, Mumbai.
Specific Guidance and Review

SHRI S.C. VASISHTHA
Chief General Manager
NABARD, PATNA
General Guidance and Supervision

SHRIA.K. SINHA
General Manager
SHRI MAHESH KUMAR
Deputy General Manager
NABARD, PATNA
Field Visit, Tabulation, Analysis of Data; Drafting, Composition

and Presentation of Report
SHRI SUBHASH SERAPHIM
(Agriculture Economist)
Assistant General Manager
NABARD, PATNA
Photography
(By the Author)
(xi)
eicKiKd ^r§cy
(xii)
Abbreviations / Acronyms /Terms used in the Report
AE Agriculture Economist
APMC Agriculture Produce Marketing Cooperatives
BCR Benefit Cost Ratio
ADB Agriculture Development Branch
AMY Agriculture Marketing Yard
BEA Break-Even-Analysis
BSEB Bihar State Electricity Board
BHP British Horse Power
CISS Capital Investment Subsidy Scheme
C/S Cold Storage
eft cubic feet
cu.m. cubic meter
DSCR Debt Service Coverage Ratio
e.g. for example
FRR Financial Rate of Return
GoB Government of Bihar
Jaggery/gur Raw form of artificial sweetener, a by product of
modern sugar mill or manufactured by traditional
method
HDI High Density Injection
HO Head Office
HQ Head Quarters
i. e. that is
IRR Internal Rate of Return
Kgs Kilograms
Khattals Shelf/ Stacks made of bamboo
Km Kilometer
kV/ KV Kilo volt
Md Mohammed
(xiii)
mm millimeter
IM/s Messer
MT Metric Tonne
NABARD National Bank for Agriculture and Rural Development
NCDC National Cooperatives Development Corporation
NHB National Horticulture Board
No. Number
NPA Non Performing Asset.
NPW Net'Present Worth
PW Present Worth
OS Osmosis Suction (Ammonia , Scrubber type )
Psi Pound per square inch
Qtl/qtl Quintal
RCC Rajendra College Chappra
RPM Revolution per Minute
Rs. Rupees
SBI State Bank of India
SPDP Single Pole Double Point
TFO Total Financial Outlay
TR Tonne Referigeration
VAs Voluntary Agencies
VCS Vapour Compression System
Viz. 'namely' or 'these are'
vis-a-vis with respect to
Note: a) Name of places used in the report is identical to those used by

the Survey of India; it may be different from those used by the
media or local publications. Calcutta is same as Kolkata. U.P. is
same .as Uttar Pradesh.
b) Metric system is used to denote certain identified measurement,
wherever itnecessitated, non metric denotations have been
used, for example, the capacity / size of compressors are
used in inches only.
(xiv)
I BASIC DATA SHEET
1 Sample of the Study Name of the Cold Name of the

Storage( C / S ) District
DKC/S Muzaffarpur
Vishwanath C/S Saran ( Chhapra)
Vaishali C/S Vaishali
Massina C/S Samastipur
Pransukha C/S Purnea
3 Implementing Banks Five branches of'the State Bank of India
4 Period of Implementation 1998 to 1999
5 Reference Year Calendar Year 2001
6 Average capacity 4870 MT
7 Average investment cost: Rs.145.60 Lakh (for capacity ranging

between 4000 and 6000 MT)
8 Average utilisation 80
(% of total capacity)
9 Average rent per quintal
a) DK Rs. 100
b) Others Rs." 125
10 Economics of average sample a. Average Annual Rs. 46.70 Lakh

cold storage Gross Cash inflow
(Rs.)
b. Average Annual Rs. 16.10 Lakh

Cash outflow (Rs.)
c. Average Net Rs. 34.41 Lakh

cash flow (Rs.)
11 Average Net Profit after Rs. 6.89 Lakh ( r a n g i n g f r o m

bank and t a x o b l i g a t i o n s Rs. 2.13 lakh t o Rs. 9.78 Lakh )
12 Financial Rate of 21.82 % (Ranging f r o m

Return (FRR) 17.02 % to 26.12 % )
13 Break Even V o l u m e of sales Ranged f r o m 39 % t o 65 % .
(XV)
[EXECUTIVE SUMMARY
(The Summary and Conclusions are given in the Chapter IX)
Out of 38 districts, 26 districts were having 204 registered cold storages

with an installed capacity of 6.8 lakh MT during 2001-02. Eight of
these had been refinanced by NABARD during 2000-01 under "Special
Scheme of Cold Storages in Bengal and Bihar" which had some
relaxations with respect to rent, licensing etc. Five cold storages under
this scheme were selected one each from five districts across the
State.
In Bihar, storage of potato is synonymous with cold storage. The total

production of potato in 2001 - 2002 was 39.94 lakh MT about 5.19
per cent of the Net Sown Area was under this crop.
The share holders / partners in sample cold storages were from the
same family tree with a rich background of professional skill and
experience as the same family had had an established business in
some other sector with huge investment, for example, tannery industry,
a very popular brand chewing tobacco industry, a chain of five Cinema
halls and three brick kilns by the same family etc. Cold storage was
just an horizontal expansion of their established business where assets
earned in diverse sectors were properly parked as investment in cold
storages.
The average cost of establishment was worked out at Rs. 145.60 lakh
for an average capacity of 4870 MT of potato with a break up of Rs.
2.90 lakh in land and site development, Rs. 69.80 lakh in civiJ work,
Rs. 60.20 lakh in plant & machinery and Rs. 12.70 lakh in other
machinery ( generators etc.) and furniture / fixtures.
The control farmers earned Rs. 1.05 to Rs. 1.17 over one Rupee spent
in a situation where the entire stock of potato was sold from the farm
at the farm gate price.
The sample member farmers earned Rs. 1.17 to Rs. 1.82 over one
Rupee spent after storing 60 per cent of the stock in cold storage , 40
per cent of stock selling at farm gate price and meeting the cost of
storage.
(xvi)
7 Thus, the reward for parting with quick liquidity and storing potato
fetched 12 to 65 per cent point rise in income over one Rupee spent
for member farmers.
8 The annual net cash flow ranged between Rs.28.70 lakh and Rs.
46.36 lakh before the payment of principal and interest of the bank
loan installment and corporate income tax.
9 The average net profit, after repayment of bank obligations, and tax
liabilities worked out to Rs. 6.89 lakh per annum with a range of Rs.
2.13 Lakh to-Rs.10 .56 Lakh.
10 The FRR worked out to 17.02 per cent to 26.12 per cent at 15 per
cent discounting factor.
11 In sensitivity analysis, it was discovered that the sample cold storages

were relatively more sensitive to the risk of having more cold storages
in the vicinity and stiff competition rather than to increase in cost.
12 The break-even volume ranged between 39 per cent and 65 per cent
of the capacity.
13 Thus, the establishment of cold storages caused enormous benefit to

member farmers, cold storage owners, and public in general who were
saved from ills of wide price fluctuations. Stability with more certainty
in potato prices were the most important contribution of the cold
storages.
14 The recovery performance of all sample branches of SBI had been

better.
15 The repayment performance in case of the two units were excellent,

for another two units it was satisfactory and for the remaining one
unsatisfactory.
(xvii)
I ^rf%T<T Qifechtf
1. ^ 2001-2002 ^ ^t?H ^ 38 f^Teft ^ ^ 26 f^Teff ^ 6.8 H K I f^f^ch ^ ^ ^
^-srrfâwcTT cn^ 204 M41cbd ^ M ^ ^\ "^^ 8^ f^t^mr^^^m\^'^R\^

2000-01 ^ ^ ^ ^ 1 ^ " W e T 3 l k f t ? N '^ i ^ ^ ^ feT^ f^^T^ ii\^^\" ' ^ 3f^T%
1 % ^ T17TT cTm ? ^ R>^MI, eTT^#fr ^cMlR ^ ^ £ T ^ ^ T 5 ^ ^ T[^ | ^ ^TK^HT
^ 3trnfcT T^ YTS^T ^ 5 f^feff ^ ^ ^ T c ^ ^ ^ ^ c^ 3TT?TR 'CR 5 iffcT ^ ^ ^ 1
2. f ^ ^ N ^ 3TTc^^ •H'^KÎ yffcT ^J? ^ W^ %\ c]^ 2001-02 ^ 3TTc^^ " ^ vdcMKH

39.94 eTT^ f ^ ^ ^ ^ 8TT sfT^ fÎcR^ ^cn^ a ^ ^f ^ ^ i^T^r^ cfJT fl^RTT eFPTfT 5.
19 yR^^ld 2TTI
3. ^5^f^ 1 ^ I ^ ^ " ^ ^ ^TJR £TRcp/>[H|^ciK ^ J # MRCIK ^ ^, f^Hc^ oq|c|N[H|f^cb
^ l ^ M 3fk 3T^^Hcr ^ f ^ g ^ t 3fk t ^ 3T^ ^ ^ sf^ Wm ^f^ ^JT^RTR
RH^HN^! 3fk 3 ^ ^ ^ 3TTf^ | ?ftcT ^ ^ 5 ^ ^-STTf^ cZTcRTFT ^ ^TT^f i-\mx\i

l^^-dK ST[ ^ ^ ^ ^ McTET ^ ^ 3 T f ^ 3TTf^^ ^ #cT ^ ^ ^3l%fn f^f^ ^ WT
^ ^ ^ ^ ^rpTTI
4. 4870 Plf^cb ^ ^ m^ ^ afhHcT aiHcTT %g WT^ 145.60 efKI ^ sfT^ffrT 7-8TFHT efPm
3Tt^ ^ , f ^ W ^ Rcixiui ^ ycfTR 11 ^ 5 ^ 2.90 eTR? ^ s f k ^-STc^ Rc^KH, ^ ^
69.80 e^RI f ^ r i ^ ^ f ^ , ^ ^ 60.20 eTR^ ^ft4^ 3fk ^^THil, ^ ^ 12.70 efKI 3T^
5. cb'j^ld RhxlHMV^ ^ f ^ ^ 1 ^ ? ^ T7^ ^ ? ^ 1 . 0 5 ^ - ^ ^ 1.17 eT^ ^?^ fMcT ^
6. ^ T[^ ^fT^^W {î-]\^ ^ ^J^ 1 M ^ ^ ^ ^ 1.17 ^ ^ ^ 1.82 cT^P 3 T f ^ %^,

^JRf^ ^ J ^ ^ 60 MR^Îd ^f^T^ ^ftcT û^Kî TJ^ ^ ^^T^ f^72TT ^STT ^^K^ ^ ^^
"^m^ %^ W 4 Tfe T ^ q ^ 40 yfrl^ld ^f^T^ ^ f ^ I
7. ^ 5rspK ^ f K ^ R5>tHMl ^ ^ f ^ ^ 1 ^ ^ IT? ^^rf^ d^ddl 3fk 3TTc^ ^
û^KU| %^ 12 ^ 65 yfc^^ld efcf^ 3TFT ^ ^ ^ 1
(xviii)
8. t ^ ^ ^ f ^ ^ cf^ ^ ^ T % 3 l k s q n ^ cTSTT cH^Mlê 3TFT^f^ ^3^7^^ ^ i T ^ cnf^
f^cR^T ycTTF W r 28.70 c^TRI s f k ^ f i ^ 46.36 eTT^ c^ ^ Y^ |
9. fzf^ ^ t^TcTT 3fR ^PY ^^^TcTT3ft ^ 3^c{|i|J^| c^ sfK afT^FRT f^T^Tef cTPT "^^ 6.89 eTT^
^ ^ ^ ^ 3fr^ ^^fra^ ^ ^ ^ 2.13 eTRI ^ ' ^ 10.56 eTRI ^ ^ STTI
10. X ^ 3TR 3TR 17.02 ^rf^^TcT ^ 26.12 yf^^TcT ^ #Ef TFT I
11. ^H^ciH^'ildcll Rlêit|U| if i j ^ ifT^T ^fFTT 1% - ^ P l ^ l iff^ ^ c^mcT ^ ff^.'^J^r ST^STT
3TiT^ q r ^ ^ 3^ 3 T f ^ ^fTcT T J ? CTSTT ^ Mf^êrf ^ vrllRilH ^ ^ srf^
12. t ^ ^ slle^H 5FRTT ^ 39 ^f^^TcT ^ 65 yf^^lcl ^ f m T?T I
13. ^ y ^ T ^ ^ M TJF ^ T-STN^ ^ T T ^ ^ Rh^tHnX VftcT ^ Hll>|chl' sfT^ 3TFf ^JHm ^
' 3 T W t e efFT ^3TT 3 f k ^ ^ê^Tt ^ 3T^?Tf^ ^JcTR-^f^TcT ^ ^ ^ T R ^ ^m ^ I 3TTc^
^ TJe^ff ^ 3 T I ^ >!jf^f^^cidl ^ ^ a r T - s n f ^ ^ ^ ^ ^ T T ^ ^T^c^nj^f i^Vlc^H 1 1
14. •HKrilil ^ t ^ ^ TT^ ^ ^ W^^ ^ ^R|c?r Pl^MKH 3Tx5?T TFT I
15. ^ ^jpr^t c^ TRs^r ^ -^ci^lcTi PitMK^ TT^#5 2^, ^ ^ ! j f ^ t g ^TF ^HdlîvjUch 2TT s f k
(xix)
CHAPTER I
INTRODUCTION
1.1 Cold Storage is an enclosed chamber insulated in prescribed manner
and mechanically cooled by refrigeration machinery to provide
'specified refrigeration' to horticultural products in general and
Olericulture products in particular (in the context of Bihar), stored
therein for minimising post harvest losses. Specified refrigeration'
means not only cooling adequately to the required temperature of
the product stored, but also specified humidity. The main components
of refrigeration system are Ammonia gas , Cooling coil ( evaporator).
Compressor (as shown in the photograph. Exhibit No. 1), Ammonia
Receiver (as shown in the photograph, Exhibit No. 2), and Condenser
units. The Ammonia gas extracts the heat from the chamber in cooling
unit ( evaporator ) and transmits the same to external environment
through water-cooled condenser (as shown in the photograph. Exhibit
No. 7). It is to be noted there are mainly two types of cooling unit,
Freezid Coil System (as shown in the photograph. Exhibit No. 4) and
Bunker Coil System (as shown in the photograph, Exhibit No. 5). The
former is relatively expensive but space economic with no substantial
difference in capacity / performance. Inside the chamber, the cooled
air adjoining the cooling coil descends in the chamber with the help
of gravitational force and hot air moves upward towards cooling coil
installed on the topmost floor of the chamber. It will not be wrong to
scale down a cold storage of 5000 MT capacity to a home refrigerator
of one cubic.meter at the rate of 1:1470. (The photographs as different
Exhibit Numbers are presented at the end of this report. )
1.2 In the chamber, a multi-floor structure is made either of RCC or

Steel. Generally five to six floors are created to store the goods keeping
in view the load carrying capacity of the workers. The floors are
made of tamarind wood or bamboo chalkies. The potatoes are stored
in the chamber in gunny bags of 50 Kg to 80 Kg capacity (as shown
in the photograph. Exhibit No. 6). Gunny bags are being stacked in
stacks (known as khattals in local language). Generally four or five
khattals are in one floor. Normally, two and half feet wide passage is
kept along the periphery of cold storage and between the khattals
for movement of workers and goods. In each stack, the bags are
stored vertically. In each row up to eight bags are kept and one foot
air gap is left between top of stacks and immediate ceiling for better
{ 1 }
circulation of air in the chamber. The stored bags are shuffled at
regular intervals to prevent decay of the commodities at the bottom
layers of the stack. At the time of withdrawal of stock from cold
storages, potato is emptied in an open shed to make them adaptive
to non-cold storage environment. In the photograph, (Exhibit No. 10)
potato is shown in wet condition as just released from the cool
chambers. In the photograph, (Exhibit No. 8) it is shown how potato
is dried by using fans. Thereafter, these are re-packed in gunny bags
of the member farmers (as shown in the photograph, Exhibit No. 12).
The photograph as an Exhibit No.9 shows the sample of dried potato
ready for re-packing to hand over the concerned farmer/trader. A
negligible proportion of potato stored is wasted during the period of
storing. A sample of wasted potato is shown in the photograph. Exhibit
No.11.
1.3 In Annexure I the basic requirement of temperature and humidity

for different horticulture and olericulture products stored in the cold
storages is indicated.
1.4 Nearly one third of our horticultural produce, especially fruits and
vegetables is wasted, mainly on account of poor cold storage and
other storage facilities. The country also experiences wide fluctuation
in prices of horticultural produce, particularly, potato and onions.
The Government of India, therefore, appointed a High Level Expert
Committee in November 1998 for improving the cold storage/other
storage capacity for horticultural produce of the country. The
committee made an assessment that additional cold storage capacity
of the order of 12 lakh MT would be required during IX five-year plan
period. Besides, rehabilitation/renovation of 8 lakh MT capacity
(approximately), which is lying unutilized in various states especially
in U.P., Bihar and Orissa would be necessary. The committee also
assessed the requirement of storage for onion at 1.5 lakh MT, at the
farm level in producing areas and 3 lakh MT buffer godowns at APMC
Yards and terminal markets in different states. A n n e x u r e I I I ( A )
may be referred for an evolution of cold storages in India in terms of
number, capacity etc. since 1964 to 2 0 0 1 . The state/ Union Territory
wise distribution of cold storages in terms of capacity etc. are furnished
in the Annexure I I I ( B ) .
1.5 With a view to ensure faster development of cold storage capacity

and reducing post harvest losses of horticultural produce through
promotion of setting up of cold storages including controlled /modified
{ 2 }
atmospheric storages, the 'capital Investment Subsidy Scheme for
Cold Storages' was announced by the Union Finance Minister while
presenting the Union Budget for 1999-2000. The scheme is under
implementation by NABARD/NCDC/NHB.
1.6 As on 31 August 2 0 0 1 , a total of 306 cold storages with capacity of

15.37 lakh MT, TFO of Rs.419.44 crore. Bank loan of Rs.229.89 crore
and eligible subsidy of Rs.96.88 crore have been sanctioned by
NABARD. The physical target set for 9th plan period for all three
agencies has been exceeded by NABARD alone much in advance.
1.7 Cold S t o r a g e s in Bihar : In Bihar, cold storages are mainly

constructed for storing potato. However, in stray cases, some other
olericulture products, horticulture products like fruits, spices, dairy
and poultry products are also stored. In Bihar, the area under different
vegetable crops during 2001 - 02 was 7.77-lakh hectare, out of which
an area of 3.14 lakh hectares was for potato only. A trend of 4.6 per
cent growth has been recorded In vegetable production and of potato
also.
1.8 The cold storage capacity during 2000-01 was 6.78 lakh MT in the
State .Out of total 38 districts in Bihar, 26 districts were having cold
storages. Out of the 204 registered cold storage units, 187 were in
private sector and 17 in cooperative sector. Over and above these
existing Cold Storages during 2000-01, 20 per cent of 6.78 lakh MT
capacity was under construction during January 2002. The potato
production in Bihar during 2001-02 was 39.94 lakh MT constituting
12 per cent of the vegetable production. The vegetable production
includes mainly cauliflower, cabbage, onion, tomato, chilies, brinjal,
okra and leafy vegetables. Around 13.88 per cent of Net Sown Area
is covered by vegetables. 37.45 per cent of total Net Sown Area of
vegetable is covered by potato alone and rest 62.55 per cent is covered
by other vegetables. Hence, the share of potato cultivation in Net
Sown Area is 5.19 per cent. The net sown area of Bihar was 56.03-
lakh hectare during 2001-02 after Its bifurcation in two states. Potato,
being a short gestation vegetable crop, is cultivated only once In a
year during Rabi season as a major practice. However, in a stray
case, it is also cultivated in post kharif season.
1.9 During 2000-01 there had been 204 Cold Storages registered with
Cold Storage Owners Association, Bihar and State Directorate of
Horticulture, Bihar, existed in the State. Annexure I I may be referred
{ 3 }
for the distribution of those 204 Cold Storages in Bihar. It may be
noticed that more than 87 per cent of total existing capacity of the
Cold Storages in Bihar were utilised for potato alone. Even the rest of
the Cold Storages classified as 'multipurpose' were for storing potato
only as a major constituent of storing products. The small proportion
of diversified products stored was mainly consisted of eggs, jaggery
or gur.
1.10 In Table 1 . 1 , particulars of existing and potential number of cold

storages in the sample districts and in Bihar as a whole are furnished.
Table 1.1
Existing and Potential Number of Cold Storages in Sample District and in Bihar
Name of Number of Capacity Area Production Quantity The Potential

District cold in m under of Potato (MT) to be effective number of
storages potato (MT) stored gap in the • Cold
cultivation capacity in Storages
in MT
thousand (6-3)
ha.
1 2 . 3 4 5 6 7 8
Muzaffarpur 10 29,985 9.85 117,800 70,680 40,695 9
-'3
Samastipur 8 45,495 12.35 172,300 103,380 57,885 12
Saran 20 69,870 14.7 202,150 121,290 51,420 ' 11
Vaishali 10 57,755 11.95 168,400 101,040 43,285 9
Purnea 5 19,140 6.2 62,800 37,680 18,540 4
Bihar State 204 726,975 313.8 3,993,500 2,396,100 1,669,125 365
Note : The above figure includes non-registered Cold Storages. Hence the
number of Cold Storages as mentioned Annexure I I may be slightly different.
As seen from the above table in addition to the existing 204 cold storages
365 cold storages are required for the state of Bihar. The quantity of potato
mentioned in the Column no. 6 in the above table is .estimated on the basis
of 60 per cent of production of potato produced in the district. The potential
estimation as above preconditions certain realistic assumptions. The location
of the additional cold storage must be preceded by a scientific and realistic
survey so that these are located in area where the number of cold storage
is deficient vis a vis area and production of potato.
{ 4 )
CHAPTER I I
OBJECTIVE AND METHODOLOGY OF THE STUDY

2.1 Objectives of the Study
i) To study the pattern of use of cold storages, level of capacity utilization
and perception of users.
ii) To assess the actual cost of investment, adequacy of loan and
deviation from sanction.
iii) To study the adherence to techno-economic specifications and to
identify the reasons for divergence, if any.
iv) To estimate the benefit accrued from the investment, work out the
viability of units and adequacy of backward and forward linkage.
v) To study the repayment performance.
vi) To identify the problems in implementation of the scheme and suggest
solutions therefore.
2.2 Selection of Sample Cold Storage : The registered Cold Storages in
Bihar included eight Cold Storages under a Special Scheme of West
Bengal and Bihar of the Government of India that were covered under
NABARD refinance scheme and four under Capital Investment Subsidy
Scheme of NABARD. The study is covered five out of those eight Cold
Storages which were refinanced under the special scheme of West
Bengal and Bihar and commissioned during the year 2000 (calendar
year) and had completed two to three operating .cycles. Those eight
cold storages were refinanced under the subsidy scheme. But subsidy
could not be released in any of these eight cases by NABARD due to
noncompliance of some of the terms and conditions. However, later
two Cold Storages viz., Vaishali Cold Storage, Vaishali and D.K. Cold
Storage, Muzaffarpur had received subsidy (during drafting stage of
this report) from National Horticulture Board (NHB). As cold storages
refinanced under Capital Investment Subsidy Scheme - were recent
ones, they were excluded for the study.
2.3 Data Collection: The data were collected in three different

questionnaires specially designed for
(i) Beneficiary farmers keeping their produce in the cold storage,
(ii) Cold storage units and
(iii) Financing banks
{ 5 }
2.3.1 In case of beneficiary farmers, 15 farmers per cold storage unit
(depending upon the availability) were selected for the study. While
selecting the beneficiary farmers, care was taken to ensure that they
represented a cross section of farmers growing different crops.
Chapter I I I may be referred for the details with respect to study
area, financing banl<, Sample Cold Storages etc.
2.3.2 The questionnaire for beneficiary farmers included information on
particulars of farmers, category of farmer, land holding, crop details
including total production, domestic consumption, distance from cold
storage unit, quantity stored in cold storage unit, farm gate prices,
rental charges paid, etc. The questionnaire for cold storage unit had
three different parts. Part A contained name and location of cold
storage unit, financial details, type of unit, storage capacity created,
capacity utilized and rental charges charged etc. Part B elicited cost
details of cold storage unit, e.g., land and land development,
preliminary and pre-operative expenses, civil structures, plant and
machinery, contingencies etc. Part C related to operational and
maintenance costs of the cold storage units' viz. administrative
expenses, insurance, electricity, chemicals, etc. The questionnaire
for financing banks included T.F.O, of cold storage unit, bank loan
disbursed, loan repayment, loan outstanding etc.
2.4 Data Analysis : For studying economic viability the project evaluation
techniques namely, benefit cost ratio, net present worth and internal
rate of return were used. Cash flow analysis of the sample units was
also attempted and its effect on repayment performance was studied.
2.4.1 Assumptions w i t h respect to Fixed cost, variable cost,
depreciation etc.
i) The life of cold storage unit for the purpose of preparation of cash
flow statement taken as 15 years.
ii) The salvage value taken at the rate of 50 per cent for Civil works and
20 per cent for plant and machinery at the end of 15th year.
iii) For break-even analysis, the component of fixed cost includes salaries,
repairs, insurance, administrative expenses and expenditure on post
and telegraph. Whereas, the component of variable cost include
expenditure on electricity, diesel, ammonia and consumable, wages
and miscellaneous expenditure.
iv) Depreciation in the fixed capital cost in respect of the plant and
machinery was taken at 10 per cent and that of buildings was taken
at five per cent.
{ 6 }
v) The opportunity cost of fund from own resources has been excluded
from the analysis.
2.4.2 Economics of Member Farmers : A separate analysis has been
attempted in Chapter VI of this report elucidating the economics of
potato production by the member farmers of cold storage in both
situations viz., the availability of cold storage facility and non-
availability of cold storage facility. A hypothetical situation is also
analysed when the potato-growing farmers had to sale the entire
stock at farm gate price in absence of a cold storage in the vicinity.
This imputed income is compared to the income from 40 per cent of
the stock sold in farm gate price and income from the rest 60 per
cent income after withdrawal of stock from the cold storage after
meeting the cost of storing.
2.5 Sample Selection : Cold Storages covered under NABARD refinance
scheme were considered for the study. In last decade 12 Cold Storages
had been refinanced by NABARD. Out of these 12, four were under
Capital Investment Subsidy Scheme, 1998 and rests eight were for
the special (subsidy) scheme of West Bengal and Bihar. During the
reference year of the study no Cold Storage under Capital Investment
Subsidy Scheme had more than one operating cycle completed as
such these were not considered for the study. Thus five sample Cold
Storages were selected out of eight refinanced by NABARD under
Special (Subsidy) Scheme of West Bengal and Bihar. Chapter I I I
may be referred for the details of those sample Cold Storages.
Annexure I X may be referred for details of those eight cold storages
refinanced by NABARD under special (Subsidy) Scheme of West Bengal
and Bihar.
2.6 Data Approximation : Decimal figures are rounded off up.to two
digits. The production and productivity figures of potato in Chapter
V I are rounded off up to the nearest upper or lower figures divisible
by five. For example, 171 is made 170 or 173.50 is made 175.
2.7 Reference Year : The reference year of the study is the calendar
year of 2 0 0 1 .
2.8 Break-even Analysis : In the present study, it is to assess the level
of capacity utilisation that would enable the unit to break-even. The
BEA was carried out in terms of installed capacity as per the formula
given below :
Break-even point-at a given capacity utilisation
(in terms of percentage of installed capacity)
{ 7 }
Fixed Cost
Contribution *
* Rental realization-variable costs
2.9 Sensitivity Analysis : It is impossible to quantify all the risks of a
project, as different formulations of essentially the same project may
involve different degrees of risk. However, a project can be tested for
sensitivity to changes in some specific element to see how the benefits
produced by the project will be affected. Some of the risk variables
affecting the viability of the Cold Storage projects may be as under:
A) New cold storages, if any, may come up in future in the nearby area
resulting in less utilisation of storage space in the existing cold
storages.
B) Adverse climatic conditions like floods, droughts, frost and similar
adverse climatic conditions in the area may result in lower production
and thereby lower storage space utilisation of the cold storage
affecting the income generation capacity.
C) Price risk, (say if prices are high at the time of harvest itself, people
may not like to utilize the cold storage facility) may affect the utilization
of cold storage capacity.
A detailed sensitivity analysis on account of cost and income was
carried out for different risk variables associated with the cold storage
units to assess the probability of the events whether it is within the
range of acceptability as per practices followed regarding NPW, IRR,
BCR, etc. Hence, sensitivity analysis was done for each sample Cold
Storages in two ways. First, keeping the cost constraints, income or
cash inflows was reduced by 10 per cent of the actual. This could
have been due addition of more Cold Storages in vicinity consequent
to price risk due to competition. Second, keeping cash inflow constant,
the cash outflow was increased by 10 per c e n t . This could have been
due to escalation in cost.
2.10 T i m e Frame : The study was conducted during October 2002 in five
districts at the rate of one sample Cold Storage in each district.
( 8 }
CHAPTER III
CHARACTERISTICS AND PROBLEMS OF SAMPLE COLD STORAGES

3.1 All the five sample cold storages covered under the study were
established in the period just one to two years preceding the reference
year under a special scheme of Bengal and Bihar. This scheme gave
freedom from obtaining license, rent control and requisition of cold
storage space etc. and allowed functioning of free mechanism for
demand-based growth of cold storage industry. It gave a quantum
jump to cold storage capacity of the Storage from 5.7 lakh I^T in
1995-96 to 10.5 lakh MT in 1998-99. In 1999-2000, the credit linked
Capital Investment Subsidy Scheme of Govt, of India being
implemented through NABARD gave further boost to increase the
cold storage capacity. I^ôst of the cold storages established during
the period were in private sector. The important characteristics of
the sample cold storages are discussed below:
3.2 Location of Cold Storages : The name and location of those five
sample Cold Storages are mentioned in Table 3.1 below.
Table 3.1
Location of Sample Cold storages
N a m e of t h e Location N a m e of -
Cold Storage District
D.K. Cold Turk! (on NH 77 between Hajipur and Muzaffarpur

Storage Muzaffarpur)
Vishwanath On NH 85 between Chhapra and Siwan Saran

Cold Storage
Vaishali Cold Off Mahua on State Highway between Vaishali

Storage Hajipur and Samastipur
Massina Cold Off Samastipur on State Highway Samastipur

Storage between Samastipur and Darbhanga
Pran Sukha Off Purnea on by-pass of NH 3 1 , Gulab Purnea

Cold Storage Bagh
{ 9 }
The distance of all five sample cold storages from the district headquarters
is depicted in Table 3.2. Of the five sample cold storages three i.e. 60 per
cent were located less than 15 kms. away from the district headquarters.
All five-sample borrowers had own land in the name of one or two partners
and purchased some adjacent land to construct the cold storage on the
main road. These cold storages were mainly storing the produce of others.
The proportion of the own product (Potato), being marginal, has been ignored
in the analysis.
Table 3.2
Distance of Sample Cold Storages

*
Distance f r o m No. of cold storages per cent t o t o t a l
district HQ
0 - 05 Kms. 1 20.00%
05 - 10 Kms. 2 40.00%
10 - 15 Kms. 0 0.00%
15 - 20 Kms. 1 20.00% .
20 - 25 Kms. 0 0.00%
2 5 - 3 0 Kms. 0 0.00%
30 - 35 Kms. 1 20.00%
Total 5 100.00%
3.3 Ownership Pattern : Each of the five sample cold storages was
owned by the member(s) of a single family tree, that is, first cousins,
daughters-in-law etc., in partnership pattern;
3.3.1 Occupational Pattern of Owners : The five sample cold storages

were in the name of 30 members. Of these 30 members, 26 per cent
were having agriculture as their main occupation while the remaining
74 per cent were doing other works viz. govt, service, trading and
professional services (Table 3.4)
{ 10 }
Table 3.3
Owners' Personal Status
Name of Num.ber of Sex Belong Education

Cold Owners / to same
storage Directors family
tree ?
[viale female Non Matri- Gradu Post
Matri- culate ation Gradu
culate ation
DKC/S 5 3 2 yes i 4
Vishwanath C/S 9 5 4 yes 1 7 1
Vaishali C/S 7 7 0 yes 4 1 1 1
Massina C/S 4 3 1 yes 1 2 1
Pransukha C/S 5 3 2 yes 4 1
Total 30 21 9 4 4 18 4
Table 3.4
Occupational Pattern of Sample Owners
Main occupation No. of o w n e r s % to total
Agriculture 8 26.67
Other( Doctor, lawyer, 22 73.33

lecturer/Teacher etc.)
Total 30 100
3.3.2 Qualification of Owners : An overwhelming majority of partners

were well educated. Among them there were medical degree holder,
law p r a c t i t i o n e r , Ph.D. etc. As many as 22 m e m b e r s were
graduates/post graduates. In fact, excepting one case where the
majority of partners (4 out of 7) were non-matriculates, the remaining
04 units had p r e d o m i n a n t l y g r a d u a t e / p o s t graduate partners
(20 out of 23).
{ 11 }
3.3.3 Experience of Owners : All the cold storage owners were involved
in some other established business. One cold storage shareholder
had established a Zarda (chewing tobacco) factory of a popular brand
in the country having its corporate office located at Delhi. Similarly,
another was a family of the Minister in a State Government, having a
big network of transport business, five Cinema halls, and three brick
rieen. One had a well-established tannery industry in Calcutta having
its corporate office in Calcutta. Interestigly, one cold storage of its
name was already famous for producing HYVs of maize, rice etc. The
same family was having a dealership of tractors and a premise of the
cold storage was used as a garage for tractors. One had established
network of supplying Jute to different parts of the country with a
fleet of heavy motor transport vehicles and two weighing platforms
(Dharm Kanta). With such a business background, reputation and
contacts with banks, concerned district officials, police, political
godfathers etc., promoters of cold storages did not have much hurdles
in their project implementation. It was also felt during the field
invesigations that in all five-sample cold storages units were merely
a horizontal expansion of their existing businesses. The Profits earned
from such units were invested in safe and profitable avenues.
3.4 Process : Cold Storage operations for potatoes start in first week of
February with advance booking by farmers and traders. As potatoes
arrive in gunny bags (of 50 Kgs each), these are weighed, marked
and loaded on the racks. A receipt is given by the company to the
depositor with his name, address, number of bags, condition of goods,
rental charges, insurance charges, etc. The receipt is signed by hirer
and licensee. Generally, February and March are the months when
loading of goods takes place. Cold storage is operated 2 days before
loading, bringing the temperature downto one to six degrees celsius.
This temperature is uniformly maintained throughout the period of
storage. Unloading usually starts in May and goes on till November.
Seed potatoes are not dried. Table potatoes are dried in the drying
chamber, graded and repacked. From December repairing and
maintenance is done till next season starts in Feburary.
{ 12 }
Table 3.5
Actual Use and Unloading Pattern of Sample Cold Storages (2001)
N a m e of No. of Months-wise unloading ( % to total)

Cold Bags
Storage Potato July August September October November
DK C/S 80000 10 15 25 25 25
\/ishwanath C/S 90000 0 0 20 25 55
Vaishali C/S 80000 0 20 20 • 20 40
Massina C/S 60000 0 0 15 70 15
Pransukha C/S 92000 0 0 20 50 . 30
Total 402000
Average of 80400 2 7 20 38 33
five
3.5 Maintenance of Cold Storages : All the sample cold storage

remained vacant during the period from December to February. Four
of the five sample cold storages were well maintained except
Vishwanath Cold Storage. The owners carried out regular repairs
and cleaning during the slack period. Painting of the pipes, motors
and other machinery was carried out annually by 80 per cent of the
owners. Repair of racks and pipes was also carried out during the
period. One of the owners, a lawyer by profession, was very innovative
in making additional insulation inside the store to reduce electricity
charges. All types of repair items and machinery were available at
district or tehsil headquarters.But repairing parts or replaceable parts
were either procured from Delhi/Haryana/Punjab or from Calcutta.
3.6 Utilisation of Cold Storage Capacity

3.6.1 Utilisation of the sample cold storages since construction is presented
in Table 3.6. Four of the five sample cold storages have been
continuously used with average utilisation over the last two years
ranging from 60 per cent to 70 per cent. The average utilisation for
five sample cold storages worked out to 74.24 per cent over the last
two years.
{ 13 }
Table 3.6
Utilisation of Sample Storages
Name of Cold Total Year-wise Capacity Utilisation (In Average

Storage Installed terms of Bags of Potatoes) use in
Capacity last 2
(In Bags years (No.
of 50 Kg.) of bags)
1998 1999 2000 2001
70000 80000 75000

DKC/S 100000 0 0 (70). (80) (75)
Vishwanath C/S 94000 0 47000 65800 70500 68150

(50) (70) (75) (72.5)
\/aishali C/S 100000 0 0 70000 80000 75000

(70) (80) (75)
Massina C/S 73000 0 0 50000 60000 55000

(68.5) (82.20) (75.35)
Pransukha C/S 120000 0 0 84000 92000 88000

(70) (76.67) (73.34)
Note: Figures in brackets indicate percentages.

3.6.2 One cold storage (Vishwanath C/S) was functional for the last three
years. It was observed that it was utilising only the portion constructed
in 1999 whereas the extended store was not used due to a major
technical fault and the owners also reported non-availability of potato
as another reason. The owners narrated that the extension of the
store was taken up in 2000 on a written request from the farmers of
the neighbouring villages. But in the last two years, the installed
capacity in this area of Saran has recorded a quantum jump with
establishment of about 20 cold storages. He reported that four other
cold storages in the vicinity were either not utilised or converted into
other uses. Prima facie inference is one of excess capacity having
been created as compared to potato production in the district.
However, the desk analyses and cross checking the facts from different
relevant sources revealed that with only 2.02 lakh MT of potato
{14 }
production, the existence of 20 cold storages in the district with an
average capacity of 4500 MT per storage, still left a gap of 1.12 lakh
MT. Yet the arguments posed by the owner cannot be entirely ruled
out. There was an apparent mismatch between the concentration of
cold storages and the concentration of the potato growing area. Out
of the 20 cold storages eight were in Garkha Block where potato
production falls far short of the installed capacity of the cold storages.
On the other hand, in Daryapur and Jalalpur Blocks there was only
one cold storage each. The above two Blocks are reported to have a
better potato growing area. Thus, in future while sanctioning
cold storage projects the sanctioning authority must consider
the Block wise production of the products to be stored, cost
of transporting the products to distant cold storages and
number of existing cold storages in the vicinity.
3.7 Trends in Cold Storage Rent : The Directorate of Horticulture,

Bihar State Government until August 2000, fixed cold storage rent.
The cold storage rent recorded a quantum jump from Rs. 90 per
quintal in 2000 to Rs. 125 per quintal in 2001 that is from the era of
control to decontrol. The year-wise average rent per quintal is
presented in Table 3.7.
Table: 3.7
Cold Storage Rent (Rs./ Quintal)
Year(s) 1998 1999 2000 2001
Rent(Rs.) 70.00 80.00 90.00 125.00
3.8 Capacity of Sample Cold Storages : Of the five sample cold
storages, the capacity of one was below 4,000 MT and that of the
remaining four were above 4000 MT. All the cold storages above
4,000 MT were having two chambers whereas the one below 4,000
MT was having one chamber only. Separate arrangements were not
made for storing different commodities.
3.9 Insurance of Cold Storages : Comprehensive insurance for cold
storage and plant & machinery was taken by four Cold Storages and
the remaining one was insured for fire and floods only. In fact three
kinds of policies for Fire, Premises (collapse due to storm etc.) and
loss of product stored due to reasons beyond control, for example,
{ 15 }
interruption in the supply of electricity were made available by the
Insurance Companies.
3.10 Environmental Factors : Factory Act was applicable due to use of

hazardous ammonia gas in the cold storage for which Annual Factory
License fee was paid. Electric connections were not released till the
permission from Pollution Board was obtained.
3.11 Impact on Farmers : During the visit to cold storages, 15 farmers

of each cold storage who stored their potato were interviewed to
know their perceptions and economics of their production of potato.
Availability of space was not reported a problem unlike in the period
before decontrol. Details of these farmers and economics of storage
are given ih Chapter V I . The important observations are as under:
a) Cold storage was available within one km. to 10 per cent of

the farmers, within three km. to another 20 per cent, within
seven km. to 40 per cent of farmers and more than seven
km. to the rest. Availability of storage space was not reported
a problem by any of the farmers. The catchment area, in case
of Samastipur and Vaishali, even extended from 30 to 40 Km.
from the storage.
b) The average operational holding of potato growers was 1.2

hectare with average Net Sown Area under potato up to 78
per cent of the total Net Sown Area during Rabi season.
c) Of the total potato production of the sample farmers, 40 per

cent was sold as table potato and stored indigenously for home
consumption while the remaining was stored in cold storage.
d) Other economic indicators, such as per hectare yield, net

benefit with storing or without storing are discussed in
Chapter V I .
3.12 Problems of cold storages in Bihar
3.12.1 The first and foremost problem faced by most of the cold storages
was source of energy. The Bihar Electricity Supply Board is the only
( 16 }
source of power. It was reported during the study that, only four to
five hours of supply per day could be made available. As per the
agreement between the cold storages and the BSEB, a minimum of 3
lakh units had to be consumed by the cold storage for a line supply of
170 kV in a year. But, electricity for only four to five hours used to
be supplied per day.
3.12.2 Moreover, due to fluctuation in voltage and frequent tripping, the

usefulness of electricity goes in vain. For example, when line is there
and compressors are made functional, it takes at least one to one
and a half hours to get the adequate pressure to bring down the
temperature around the bunkers/coil. If in the process, the line is
tripped, the whole energy consumed to bring down the temperature
is wasted as again the same process and more energy will have to be
repeated /consumed, because, the ducts have to be vacuumed again.
3.12.3 Usually cold storages install 3 compressors of different capacity. For

example - if the cold storage is of two chambers, one cornpressor
each is required for each chamber. Hence, two compressors of
capacity ranging between 7" and 7.5" are installed for each chamber.
When the compressor starts its job, assuming both the chambers
have to function, services of these two compressors are utilised.
When an ambient temperature inside the cold storage is reached,
the services of these two compressors are abandoned and
compressing service is transferred to another compressor of 9" for
the maintenance. With this process, there .are some advantages.
For instance, the cold storage management has an option to operate
only one chamber in isolation depending upon the stock. In.all the
sample cold storages visited, this system was found. It was observed
that compressor components of only three companies viz. Frick India,
Cummins and Kirloskar were reputed. But in none of the sample
cold storages, Kirloskar was found, as it was the most expensive.
3.12.4 Compressors are of two types. Low Speed and High Speed. Both
have relative advantages and disadvantages. In the sample cold
storages, low speed compressors made by Frick India in the case of
{ 17 }
four cold storages and Cummins in the case of one were installed. To
run the low speed compressor of 7.5", a motor of at least 60 kV is
required while to run the 9" compressor, a motor of 120 kV is required.
In an industrial unit, at a given point of time, a full load of electricity
say 170 kV may be required. But in a cold storage, for a major
proportion of the time in 24 hours the power requirement does not
exceed 80 kV. Only for a smaller proportion of time full capacity of
150 to 160 kV is required. But the BSEB charges for a fixed load of
170 kV. This is an economic burden borne by the cold storages.
Secondly, as explained above, the erratic supply or interrupted supply
spoils the partly utilised power. Due to this basic reason, out of five
cold storages, four had a complete set of generators. Hence most of
the Cold storages in Bihar are working partly with their Generator
back up and partly with electricity supplied by the BSEB. In photograph
as Exhibit No.3 a generator of 120 kV is shown to back up the
compressors during the erratic, low or no power supply from the
BSEB. The installations of such powerful generator not only add to
the capital cost, it contributes heavily towards working expenditure.
There had been an average annual expenditure on Diesel and
lubricants to the tune of Rs. three lakh for a capacity of 5000 MT cold
storages. This is an additional burden on the operational cost besides
heavy payment to the BSEB. One sample cold storage had not at all
used BSEB electricity. Rather, it did not even apply for the same. The
unit was running on Diesel only having diesel engine connected directly
to the compressors through fan belts. This unit was showing better
FRR comparatively.
{ 18 }
CHAPTER I V
IMPLEMENTATION OF THE SCHEMES

In this, chapter the scheme wise, that is, each cold storage wise,
implementation is discussed. The details of scheme, for example, to which
the scheme was submitted, date of submission etc.^ is furnished in the
Annexure IX.
4.1 M/S Vaishali Sheeth Bhandar Pvt. Ltd. at Mahua, in Vaishali
District
4.1.2. Financial Particulars :
Table 4.1
Rs. in lakhs
Attribute As proposed Recommended Actual/
by Bank by NABARD Effective
i) Total Financial 122.03 115.48 116

Outlay'
ii) lârgin 72.03 65.478 66
iii) Bank Loan 50 50 50
iv) NB's Refinance 45 45 45

@90% of (iii)
4.1.3 Financing Bank State Bank of India,

Hajipur Branch, Hajipur
4.1.4. Category of the Project NABARD- Normal
(Bihar Bengal Project)
4.1.5 Company and promoters of the project: The cold storage scheme
was submitted by M/s Vaishali Sheeth Bhandar Pvt. Ltd. Mahua,
Vaishali for establishing a new cold storage unit of 2870 MT and Ice
Plant of 10 MT per day capacity for preservation of Table and Seed
potatoes and other vegetables and fruits and sale of Ice Slabs. The
i
company was registered as Private Limited Company having Licence
No.95/96 dated 09 January 1999 issued by the Directorate of
Horticulture, Govt, of Bihar. The names of the Promoters and their
personal status are illustrated in Table 4.2.
{ 19 }
Table 4.2
Personal Status of the Owners of the Cold Storage
Names Age Sex Belong to Designation Experience
same family
tree
1 Md. Aslam 43 Male Yes Chairman Trading &

Manufacturing
Leather
2 Fazle Ahmed 48 Male Yes M.D. -do-
3 |V|d. Aminuddin 42 Male Yes Director Exporter of

Leather goods
4 |v|d. S. Hague 39 Male Yes Director Motor parts

dealer
5 Md. Haroon 62 Male Yes Director Trading of

Leather goods
6 Md. T Khan 55 Male Yes Director Trading &

Manufacturing
Leather Goods
7 Md. Asghar 55 Male Yes Director Motor parts

shop
4.1.6 The promoters have contributed to the tune of Rs.66 lakh. They
proposed to avail of Rs.50.00 lakh as term loan from the State Bank
of India. This confirms to NABARD approved project outlay at
Rs.116 lakh.
4.1.7 The project envisaged setting up of 2870 MT (287000 cu. ft.) capacity
cold storage unit and 10 MT per day ice plant. The unit was ideally
located, as it was near to the market and was also near to the raw
material. The project site was well connected by ail weather road.
During field visit it was seen that the plan of ice plant as envisaged in
the project was dropped. As such the chamber meant for the ice
plant was converted into the chamber for the potato. Hence the
•
installed capacity of the cold storage increased from 2870 MT to
4000 MT. In fact, the non installation of the ice plant brought internal
economies of scale and without rise in the cost the capacity of the
{ 20 }
storage increased.This is one of the reasons why it fetched better
FRR. The promoters had obtained the various approvals and
permissions for setting up the cold storage unit from the competent
authorities:
4.1.8 Technology Collaboration/Technology Tie-up : The company
installed bunker type cooling coil assembly and Atmospheric condenser
assembly and Liquid Ammonia for Refrigerant. The company/bank
had stated that the refrigeration plant and machinery together with
its accessories, reputed companies indigenously manufactured
insulation works, electrical equipments required for a Cold Storage
Unit and there was no difficulty in procuring them. The company had
engaged the service of experienced professional technocrats-who
had expertise and experience in Refrigeration and Air-conditioning.
A condition was stipulated that the financing bank must ensure and
satisfy itself that quality equipments were used and the services of
the expert were utilised till successful operation of unit started. The
plant and machinery were supplied, installed and test run by the
supplier as per package deal. The only difference was the source
of power.
4.1.9 Backward Linkages : The main raw material was potato, which
was grown abundantly in the area. The production in Vaishali district
was comparatively higher at 1.68 lakh MT during 2001. Besides
potato, green vegetable and fruits mainly mango were also grown in
the district but these were never stored in this cold storage. The
basic reason of not storing other horticultural products available in
abundant quantity was the product specific requirement of
temperature and humidity. It requires more sophisticated technical
know-how and costly installation of multi chamber cold storage with
varied humidity and temperature. There was abundant ground water
available in the area. A condition was being stipulated that the bank
must ensure that the water was suitable for the type of condensors
being proposed for the refregertion unit. The company/bank did not
Indicate whether it had got approval from the BSEB for power
connection to its proposed Cold Storage Unit or not. In fact, in the
i
field level study, it was discovered that this unit was runnin'g on diesel
engine exclusively and had not obtained any power from the BSEB.
The company proposed to purchase two standby Diesel Gensets of
{ 21 }
82.5 KVA and 100 KVA capacities. However, keeping in view the peak
load of 80 HP of the unit, only one Genset of 100 KVA capacity was
allowed. In reality, the company had obtained two Diesel engines
that were directly connected to the compressors through fan belts.
The site was located near Vaishali-Samasti.pur Road and regular
transportation was available. Local transport viz. carts, lorries and
tractors were available for the potato. Skilled/Semi-skilled/Unskilled
labourers were available in the area.
4.1.10. Forward Linkage ( M a r k e t i n g ) : As discussed above, the demand

far exceeds the availability of the installed storage capacity at present.
Hence there was no problem in marketing. Table No. 4.2 presents
data on the production of Potato during 2 0 0 1 , available installed
capacity of cold storage and effective gap. Assuming that 40 per cent
of the production would be stored either for home consumption or
sale from the farm directly at the farm gate price or both, quantity to
be stored in the cold storages was estimated at 101040 tones and
effective gap was estimated at 43,285 tones by deducting the existing
capacity from the quantity to be stored.
Table 4 . 3
Effective Gap in Vaishali District for storing Potato
Production Number of Existing Gap in MT Effective
in MT Cold Storages capacity in MT Gap in MT
168,400 10 ' 57,755 110,645 43,285
4.L.11 Technical Feasibility : The company had engaged the services of

e x p e r i e n c e d e n g i n e e r s for i n s t a l l i n g t h e Cold S t o r a g e Unit.
Refrigeration plant and machinery together with accessories, electrical
equipments, insulation materials etc. required for installation of Cold
Storage Unit were easily available indigenously and were of Standard
quality. The required temperature and humidity inside and outside
the Cold Storage were maintained as per the specifications. Keeping
in view the capacity of the unit, one acre of land was considered
sufficient and hence the cost of land considered was reduced
p r o p o r t i o n a t e l y . A c c o r d i n g l y , t h e cost of b o u n d a r y wall was
aiso reduced.
{ 22 }
It was reported by State Bank of India that it had already accorded
its sanction. The operating cycle, which coincided with harvesting
season commenced from the first week of February 2000. Thus during
the reference year of the study it had completed only one cycle of
operation. The details of the item wise cost proposed and considered
are indicated in Chapter V.
4.1.12.Financial Viability and Financial Parameters : The income to
the Cold Storage Unit accrued from space rental mainly. Until August
2000 the State Government in consultation with Cold Storage
companies fixed the rent and the same was Rs.95/- per quintal in
the state until 23 August 2000. Since the unit was under the special
scheme of Bengal and Bihar the Cold Storage, it was given freedom
of charging its own rent. However, the actual rate being charged by
the Cold Storage Units in the State varied from Rs.l25 to Rs,150 per
quintal per season. The actual rent charged by this cold storage was
Rs. 125 and hence economics was calculated at this rate.
4.1.13 Repayment Schedule : The bank had prescribed a repayrnent period

of six years.
4.1.14 SWOT Analysis :
(a) Strength : The area selected for setting up of the Cold
Storage Unit was suitable for the purpose. The demand for
Storage space far exceeded the availability. This could be
attributed as a strength for establishing Cold Storages..
(b) Weakness : Power Load Shedding is a usual problem ifi the
State. However, the company had extinguished its dependence
on the Bihar Electricity Board by not applying for power from
the BSEB.
(c) Opportunities : There may be new potato growers in the
area. Further other types of perishable fruits and vegetables
can be stored. Eggs can also be stored and this may give
boost to poultry (layer) farming and its marketing at distant,
places.
(d) Threat : There is no material threat to this activity.

4.1.15 Special Terms and Conditions : In addition to the usual terms and
{ 23 }
conditions, the following Special terms and conditions were stipulated.
(i) The financing bank must verify and satisfy itself before
releasing the loan to the borrower in respect of compliance to
rules and norms of various Govt. Departments. These
commitment were complied by the bank.
(ii) The financing bank must ensure that the construction of

building and its ancillary structure were done strictly as per
the approved drawings. The same was adhered to.
(iii) The financing bank must ensure and satisfy itself that only
quality and New equipments were purchased and experienced
persons were engaged in the construction of the Cold Storage.
This was also adhered to. In fact it was condoned to
demonstrate the actual functioning of the machinery before
the promoters and the financing bank officials,
(iv) The financing bank must ensure and satisfy itself that racks
along the walls were as per the sub-soil strength of the site
and also as per the specifications. To this condition, in fact,
no documentary evidence was found. However, the bank
officials assured that all these were verified during the
construction.
(v) The bank had to verify the bills and receipts for machinery
items and other purchases while disbursing term loan. The
bank had verified all relative bills and receipts of plant and
machinery.
(vi) The financing bank must ensure that the water used for the
type of condensers was suitable. To this condition, no evidence
of verification was found. However, it was stated by the bank
officials that all technical conditionality was adhered to.
(vii) The financing bank must ensure thatthe company invested
the entire down payment before release of loan. In fact, the
actual disbursement had started only after the site
development and construction of the structure without
insulation.
(viii) The financing bank must ensure that the plants as well as the
{ 24 }
stored crops were covered by comprehensive insurance policy.
However, the cold storage was not insured for comprehensive
insurance policy. It was insured for only fire and natural
hazards.
4.2 M/s Viswanath Cold Storage Pvt. Ltd. at Tekniwas, Chhapra
in Saran District
4.2.1 Purpose of the Project : Construction and establishment of Cold
Storage Unit of 4700 MT capacity under Bihar Bengal Scheme
4.2.2. Financial Bank : State Bank of India, Rajendra College, Chhapra
Branch, Chhapra , District - Saran
4.2.3. Financial Particulars
Table 4.4
Rs. in lakh
SI.No. Attributes As proposed Recommended Actual/
by Bank by NABARD Effective
i Total Financial 133.95 131.18 122.50

Outlay
ii Margin 63.95 61.178 52.50
iii Bank Loan 70.00 70 70.00
iv NB's Refinance 63.00 63.000 63.00

@90% of (iii)
4.2.4. Category of the Project : NABARD-Normal (Under Bihar and

Bengal Special Scheme)
4.2.5. Company and promoter of the project: The cold storage scheme
was submitted by M/s Viswanath Cold Storage Pvt. Ltd., Chhapra,
Saran for establishing a new cold storage unit of 4700 MT capacity
for preservation of Table and Seed potatoes and other vegetables
and fruits. The company was registered under the companies Act,
1956 having the Registration No. 156/98. The names of the promoters/
share holders and their Personal Status are illustrated in Table 4.5.
{ 25 }
Table 4.5
Personal Status of t h e O w n e r s
Names Age experience Designation
1 Raj Kamal Male 46 Transport and Managing

Cinema hall Director
2 Bipin Kumar Singh Male 48 Brick kiln Director
3 Binay Kumar Singh Male 32 Brick kiln Director
4 Dilip Kumar Singh Male 35 Cinema Hall Share Holder
5 Pankaj Kumar Singh Male 40 Cinema Hall Share Holder
6 Smt. Sharda Devi Female 35 Advocate Share Holder
7 Smt. Kanta Devi Female 32 House wife Share Holder
8 Smt. Bindu Devi Female 35 House wife Share Holder
9 Smt. Pushpa Devi Female 28 House wife Share Holder

(Singh)
The promoter and shareholders had contributed to the tune of Rs.52.50

lakh in addition to Rs.70.00 lakh as term loan from the State Bank of India.
However, as per NABARD recommendation the project outlay was worked
out at Rs.131.18 lakh but the actual investment was Rs.122.50 lakh. The
actual investment was less than the warranted due to more diversified
estimiation of capital components in the project while in reality, most of the
components were made available in a package deal from the suppliers
economising the cost.
4.2.6 Project, Profile, Location and Suitability of the site : The project
envisaged setting up of 4700 metric MT (16128.25 cu. m.) capacity
cold storage unit. The Unit is located atTekniwas on Chhapra-Siwan
Main Road. The unit is ideally located, as it is near to the market and
is also near to the raw material. Regarding other features, for example,
backward linkages, technical feasibility, SWOT Analyses etc., these
factors discussed with respect to the Vaishali Cold Storage in preceding
Para 4.1 onward are applicable to this cold storage also. However,
{ 26 }
unlike Vaishali Cold Storage this cold storage had taken the connection
of power from the BSEB as well as back up generator set.
The details of the item-wise cost proposed and recommended are

indicated in the Chapter V.
4.2.7 Financial viability and Financial Parameters : The capacity

utilisation considered for financial analysis purpose is given in the
following Table No.4.6 as under :
Table 4.6
Declared capacity 6000 MT
Licensed capacity 15854 cu.m. or 4600 MT
Installed capacity 16128.28 cub.m. or 4744 MT @3.4 cu.m./mt of potato
Utilisation 1st operational year . 70%
2nd operational year 80%
3rd operational year 90%
4th operational year onwards 100%
The summary of financial analysis as appraised and that of actual is illustrated

in the Table 4.7 :
Table 4.7
Financial Appraisal Ex ante and Ex post
As Appraised Actual (Ex Post)
NPW at 15 % DF Rs. 17.628 Rs.63.31
BCR at 15%DF 1.09 1.33
FRR 18 % 26.50 %
BEP 43.94 % 39 %
4.3 M/S Massina Cold Storage Ltd., Muktapur, Samastipur

4.3.1 financial programme
{ 27 }
Table 4 . 8
Financial p r o g r a m m e
(Rs. in lakh)
SI.No. Particulars Proposed by Recommended Actual

the bank by NABARD
2.1 Total Financial Outlay 133.90 133.90 146.00
2.2 Entrepreneur's equity 88.90 88.90 101.00
2.3 Bank Loan (MT loan) 45.00 45.00 45.00
4 . 3 . 2 . Financing Bank : State Bank of India (SBI)
4 . 3 . 3 . I m p l e m e n t i n g branch : AMY Mathurapur(Samastipur) Branch.
4 . 3 . 4 . Category of the p r o j e c t : NABARD- Normal (West Bengal and Bihar

for construction/expansion/modernisation of cold storages and
storage godown for Horticulture produce.)
4.3.5 Personal Status of the Owners
Table 4.9
Personal Status of the O w n e r s
Names Age Sex Belong to Designation Experience

same family
tree
1 Shri Ramanand 43 Male Yes Chairman Trading and

Jha Agri Seeds
Processing
2 Shri Jaishankar 35 Male yes M.D. Dealership of

Jha Tractors
Finance
Company to
finance
tractors
3 Smt Ranju Devi 38 Female yes Director —
4 Smt. Bina Devi 39 Female yes Director
{ 28 }
4.3.6 Annual I n s t a l l e d Capacity: 4000 MT (Proposed)
3650 MT (Recommended)
4.3.7 Capacity utilisation
Table 4 . 1 0
Capacity utilisation
SI. No. Year Proposed Recommended Actual
i I year 70%-2800 MT NIL same
ii. I I year 80%-3200 MT 70%-2555 MT same
iii. I I I year. 90%-3600 MT 80%-2920 MT same
iv. IV year onwards 100%-4000 MT 90%-3285 MT 3,650
4.3.8 Technology proposed : Refrigeration with unhydrous Ammonia as

refrigerant was to be operated on the principle.ofadiabetic expansion.
4.3.9 Storage area One cold chamber of
125' X 82'.9" X 42" dimension.
4.3.10 Storage t e m p e r a t u r e : 0-4° C (37° degree to 39° Fahrenheit).
The financing bank had sanctioned the captioned cold storage project
with a medium term loan of Rs.45.00 lakh on 18.02.99 with a rate of
interest of 15.81 per cent. The State of Bihar was not eligible to avail
the facilities under the Capital Investment Subsidy Scheme of Govt,
of India at the time of sanction by the bank as the rent control was
not waived till 28th August 2000. Therefore, the captioned project
was considered under the special scheme for Bihar and West Bengal,
as approved by H.O.
4 . 3 . 1 1 . Unit and t h e Promoter : The cold storage unit was established

at Muktapur village, Samastipur district, about 7 Km from Samastipur
town. It was a limited company incorporated on 29th July 1997 under
the companies Act, 1956. The promoters of the company included
Shri Ramanand Jha(51 years). Managing Director and three other
promoter directors, who were in the age group of 30-35 years. The
promoters were reported to be having good experience in activities
like agriculture, transport, agri-input supply, distribution/sale of farm
{ 29 }
machinery etc. The financing bank had reported that the area selected
for the cold storage unit was suitable and the promoters were capable
of managing the cold storage successfully.
4.3.12.Capacity : The installed capacity proposed was 4000 MT of potato

storage. The unit had proposed and the financing bank had approved
a single storage chamber of 125' x 82'.9" x 42' dimension. The storage
volume works out to 435225 eft. The above storage chamber could
a c c o m o d a t e / s t o r e only 3650 MT of potato @120 eft per MT.
Therefore,it was considered for the installed capacity of the unit at
3650 MT as against 4000 MT proposed by the unit and endorsed by
the financing bank.
The financing bank had sanctioned the term loan on 18.02.99. As

per NABARD H.O. instructions dated 12.11.2000, cold storage unit
with single chamber could also be considered for refinance sanction
with single chamber, if the bank had sanctioned the unit prior to
09.06.2000. Therefore this unit was considered for sanction of
refinance.
4.3.13.Storage Technology : The refrigerant used was Ammonia and the

cold storage system was operated on the principle of adiabetic
expansion of refrigerant. Frick Model 7"x7" slow speed heavy duty
industrial type double cylinder reciprocating ammonia compressor,
Frick ammonia oil separator ( 2 0 " x 5 ' ) , Frick ammonia receiver
( 2 4 " x l 6 " ) , 50 HP-SPDP slippering induction motor, insulation of floor
and walls with expanded polystyrene (50 mm to 100 mm thickness)
and other necessary equipments were installed to create a cold storage
condition of 36 degree Fahrenheit and 75 to 80 per cent Relative
Humidity. Ammonia was a safe, Non Ozone Depleting substance.
Regarding other features, for example, backward linkages, technical

feasibilities etc., factors discussed with respect to the Vaishali Cold
Storage in preceding para 4.1 are also applicable to this cold storage.
However, unlike Vaishali Cold Storage this cold storage had taken the
connection of power from the BSEB as well as back up generator set.
4.3.14.Potentiality of Cold storage in t h e district : Samastipur district

is producing annually about 1.72 lakh MT of potato. As per the
information furnished by the Department of Horticulture, Government
of Bihar, there were eight cold storage units functioning in the district,
{ 30 }
with a total storage capacity of 73321 cubic metre which was adequate
to store about 21565 MT of potato, which took take care of only 12.5
per cent of average annual production of potato in the district.
Therefore, there was a scope for creation of additional cold storage
facility. In the light of the above, it was felt that the cold storage
sector had good potential for expansion as a commercial venture in
Samastipur district of Bihar.
4.4 M/S D.K. Ice & Cold Storage, Turki, Muzaffarpur.
4.4.1 Financing Branch : State Bank of India, ADB, lûzaffarpur
4.4.2 Unit and Promoter : The cold storage unit was established at Turki
village, (Muzaffarpur-Hajipur road) Muzaffarpur district, about 10 Kms
from Muzaffarpur town. It is a partnership firm, promoted by Shri
Avanti Lal(reported to be one of the promoters of M/s Prabhat Zarda
Factory, Muzaffarpur) and his relatives.
4.4.3 Capacity : The proposed installed capacity was 5000 MT of potato

storage. The unit had proposed to construct two cold store chambers,
witn pre-cooling and drying facility.
The storage chambers were of 128M" x 96'.1" x 51'.6" dimension.

The total storage volume worked out to 6,35,217 eft, which was
found sufficient to meet the proposed storage capacity @120 eft per
mt of potato.
4.4.4 Capacity Utilisation : The financing bank had proposed 80 per cent
capacity utilization during the initial two years and 90 per cent during
the subsequent years. The proposed capacity utilization was found
to be on the higher side. NABARD recommended capacity utilization
as shown in the Table 4.11.
Table 4.11
I year • NIL NIL
I I year 70% 3500 MT
I I I year 80% 4000 MT
IV year onwards 90% 4500 MT
{ 31 }
4.4.5 Storage Technology : The storage technology was Ammonia as a
refrigerant, under vapour compression system (VCS). Arnmonia
O.S.(Scrubber type) 12" x 36" and H.D.I, compressors of 7" x 7"
were installed (2 Nos. in each) for the purpose. A storage atmoshphere
of 37° to 39° degree Fahrenheit and 75 per cent to 80 per cent Relative
Humidity was maintained inside the storage chambers, with suitable
rack and insulation arrangements, which was found reasonable. The
financing bank had studied the storage technology proposed alongwith
the plant and machinery included and approved them. Regarding
other features like, backward linkages, technical feasibilities etc.
factors discussed with respect to the Vaishali Cold Storage in preceding
chapters are also applicable to this cold storage. However, unlike
Vaishali Cold Storage this cold storage had taken the connection of
power from the BSEB as well as back up generator sets.
4.4.6 Pattern of Funding : The total project cost of Rs. 148.41 lakh was
proposed to be funded in the pattern as per Table 4.12.
Table 4.12
Pattern of Funding
(Rs.in lakh)
SI.No. Particulars Recommended by NABARD Actual
and financing bank
a Promoters' contribution 70.00 89.50
b. Unsecured loan 4.41 0.00
c. Term loan 74.00 74.00
Total 148.41 163.50
4.4.7. Potentiality in the district : Muzaffarpur district is producing

annually about 1.18 lakh MTof potato. As per the information furnished
by the Department of Horticulture (GoB), there were six Cold Storages
functioning in the district, with a total storage capacity of 50,815
cubic metres. The above cold storage capacity was found to be 15,000
MT of potato, only 12.82 per cent of average annual production of
potato in the district. Therefore, there was scope for creation of
{ 32 }
additional cold storage facility in the district. •
4.4.8 This unit had incurred extra expenditure on 200 kV generator over
and above two generators of 80 kV and 60 kV taking into account the
future expansion. But due to the heavy cost involved in obtaining the
extra Generator Set in addition to two existing ones, the cost of the
unit rose enough to affect the FRR adversely. This unit had scored
the lowest FRR among all sample Cold Storages.
On scrutiny of the project it was found that the cold storage project
was technically feasible, financial viable and bankable. The gist of
techno financial analysis and the results are as under:
4.4.9 Technical parameters :
i. The location of the project and accessibility were found to be

satisfactory.
ii. The promoters of the cold storage were found to have the
required skill and experience to run the unit successfully with
the support of technical staff and skilled manpower.
iii. The cold storage system selected viz. refrigeration with
unhydrous Ammonia under VAS was found to be reasonable.
iv. The cold storage space to be created at 6.35-lakh eft. was
found adequate to meet the storage requirement of 5000
MT(at 100% capacity utilisation) with 120 eft. per MT, as
recommended by NABARD HO. The capacity of the cold storage
proposed, storage technology considered with ammonia as
refrigerant under vapor compression system adopting/
installing ammonia O.S(scrubber type ) 12" x 36" and H.D.I.
Compressors of 7"x7"were found adequate to meet the
requirement..
V. Forthe cold storage, rent of Rs.lOO/qtI. was charged against
the financing bank's proposal of Rs.l25/qtl., considering the
past trend, current level of rent / fluctuation / variation due
to commodity arrival/demand, decontrol of cold storage rentals
etc. Here in this case only, the rent charged by the cold
storage was Rs.lOO.OO/quintal instead of Rs.l25.00/quintal
charged by other cold storages.
{ 33 }
4.5 M / S Pransukha Cold Storage Pvt. Ltd., Purnea
4.5.1 Purpose of the Project : To provide cold storage/controlled storage

facility to potato and otiner horticulture crops.
4.5.2 Financial Pattern
Table 4 . 13
Financial Pattern
(Rs. in lakh)
SI. Financial Proposed by Recommended Actual
No. Programme the bank by NABARD
1 Total Financial Outlay 180 180 180
2 Entrepreneur's equity 90 90 90
3 Bank Loan (MT loan) 90 90 90
4 . 5 . 3 . Financial Bank State Bank of India
4.5.4 I m p l e m e n t i n g branch SBI, Gulab bagh Branch, Purnea
4 . 5 . 5 . Category of t h e project NABARD - Normal,

( Bengal and Bihar Project)
4 . 5 . 6 . Details of t h e project
Table 4 . 1 4
Name of the unit/project M/S Pransukha Cold Storage (Pvt.) Ltd., Purnea
Location City Road, Gulab Bagh, Dist. Purnea
Constitution Private Limited Company, incorporated March 1999
Management Shri Ajay Kumar Choudhary, Managing Director
Smt. Sita Devi Choudhary, Director
Shri Sanjay Kumar Choudhary, Director
Mrs. Kalpana Choudhary, Director
Shri Shekhar Kumar Choudhary
Annual Installed Capacity 6000 MT
1 34 }
Capacity utilisation
Proposed Actual
i. I year 7 0 % - 4200 MT NIL
ii. I I year 8 0 % - 4800 MT 7 0 % - 4200 MT
iii. I I I year 9 0 % - 5400 MT 8 0 % - 4800 MT
iv. IV year onwards 9 0 % - 5400 MT
4.5.7 Refrigeration with unhydrous Ammonia is the source of refrigerant

that is a traditional technology. The Storage area of two chambers of
90'x90' each with a height of 45 feet. The storage temperature was
maintained at 0 - 4° C (32° to 39° F).
Regarding other features, for example, backward linkages, technical
feasibilities etc., factors discussed with respect to the Vaishali Cold
Storage in preceding chapters are also applicable to this cold storage.
However, unlike Vaishali Cold Storage this cold storage had taken the
connection of power from the BSEB as well as back up generator set.
The cold storage space created at 6.89-lakh eft. was found adequate
to meet the storage requirement of 6000 MT (at 100% capacity
utilisation) with 120 eft. per MT, as recommended by NAWARD HO.
The capacity of the cold storage system with FRICK model 7"x7"
Ammonia Compressor with a capacity of 40.4 TR. at 35 Psi suction
and 185 Psi condensing pressure (RPM 400 and BHP 48: 3 such
units) was found adequate to meet the requirement.
4.5.8. The total project cost approved by the financing bank at Rs. 180.00
lakh was found to be reasonable for the storage capacity creation.
The average project cost worked out to Rs. 3000 per MT, which was
within the NABARD suggested cost range of Rs. 3000 to Rs. 4000 per
MT of storage capacity of a new cold storage.
{ 35 }
CHAPTER V
COST OF INVESTMENT I N COLD STORAGES

5.1 At Historical Prices / Reference Years' Prices
5 . 1 . 1 The cost of investment in the sample cold storages has been worked
out in this chapter. Adequacy of loan amount and the margin by the
borrowers has also been discussed.
5.1.2 All the sample cold storages covered under the study were designed
for storing a single commodity i.e. potato. The major items of
investment cost were (1) Land and construction of chambers, (2)
thermal insulation, (3) plant & machinery for refrigeration system
and (4) electrical fittings and fixtures along with stand by Generator
set. Actual cost of investment at reference years, prices for the sample
cold storages are given in Table 5 . 1 . All the five sample cold storages
were new. The average capacity of five sample cold storages was
4870 MT and the average total cost worked out for this capacity was
about Rs. 145.6 lakh i.e. Rs. 2912 per MT. Broad item-wise cost for
the sample cold storages is discussed below:.
5.2 Land and Site Development: Land cost and expenses for development
of the site were included in all the sample cases. Average cost for
site development worked out to Rs.3.6 lakhs for capacity ranging
between 3600 MT and 6000 Mt.
Table 5 . 1
Actual cost of investment at Historical / Reference Year's Prices
(Rs. in lakh)
Name of Capacity Land and Civil Plant Other Total
Cold (Mt) Site Dev. Work and machinery (3to6)
Storage Machinery Furniture
& Fixture
1 2 3 4 5 6 7
DK C/S 5,000 5 70.00 70.00 18.50 163.50
Vishwanath C/S 4,700 3.5 69.00 40.00 10.00 122.50
Vaishali C/S 5,000 3 60.00 35.00 18.00 116.00
Massina C/S 3,650 3 70.00 65.00 8.00 146.00
Pransukha C/S 6,000 - 80.00* 91.00 9.00 180.00
Avg. 4,870 2.9 69.80 60.20 12.70 145.60
* Includes cost of land and site development.

{ 36 }
5.3 Civil work : Civil work included construction of chambers, pre-dry
shed, machine room, office, staff quarters, water tank, boundary
wall etc. Some of the other items like racking support and platform,
tubewell installation expenses were also been clubbed under the broad
head of civil works. Average expenditure of these items for capacity
of 3600 tones to 6000 tones worked out to Rs.69.80 lakh i.e. about
47 per cent of the total cost.
5.4 Plant & Machinery : Main items under Plant and Machinery were
compressor system comprising compressor, condenser, receiver and
air-cooling units and associated piping and controls. Separate cost
estimates for electric items and installation were not available for all
the cold storages. Therefore, cost of all these items was clubbed with
under this head. Bunker type coils installed on top floors with
conventional ceiling fans were used by three of the sample units for
air circulation with small variation in the setting. While the rest of
two sample units used Freezid coil system on top floors with
conventional ceiling funs for air circulation. Generally two doors were
provided with opening of one small door in the machine room.
Independent transformers were also installed with each of the units.
All the sample cold storage owners had purchased generator sets.
Cost of plants and machinery as a percentage of total investment
cost for all sample units worked out to about 41,35 per cent. W^de
cost variations in the cost of plant & machinery for individual units
was due to mismatching of capacity in some cases.
5.5 Furnitures & Fixtures : Items under this expenditure included

furniture in the office and some sitting provision for the farmers.
Cost under this head was almost negligible for captive cold storages
and the average cost under this head was just 0.6 per cent of the
total investment cost.
5.6 Contingencies : No sample cold storage could give genuine evidence
on extra expenditure on contingencies. Hence, expenditure under
this head has been shown nil.
5.7 Adequacy of loan amount : The actual investment cost, the cost
approved by bank and the loan amount disbursed for the sample
cold storages are presented in Table 5.2 :
{ 37 }
Table 5.2
Actual Cost of I n v e s t m e n t and Bank Loan
(Rs. in Lakh)
Name of Actual Cost Cost of Bank Loan Bank Loan Percentage
Cold of Investment as per cent Share of
Storage Investment Approved of Actual (4) to ( 3 )
by Bank/ Cost (4to2
NABARD percentage)
1 2 3 4 5 6
DK C/S 163.50 148.41 74.00 45.26 49.86
Vishwanath 122.50 131.18 70.00 57.14 53.36
C/S
Vaishali C/S 116.00 115.48 50.00 43.10 43.30
Massina C/S 146.00 146.00 45.00 30.82 30.82
Pransukha 180.00 180.00 90.00 50.00 50.00
C/S
Total 728.00 721.07 329.00
Average 14.5.60 144.21 65.80
The table shows that the actual cost was just one per cent higher than the
cost approved by banks/NABARD. It indicates realistic appraisal of cost
estimates by the banks NABARD. However, the bank's loan was just 45 per
cent of actual cost that put heavy strain on the investor. Among the individuals,
cash share of loan to actual investment cost varied between 50.0 and 82.7
per cent. Three of them could not match investment in the civil work and
the plant and machinery due to information gap as the figures wei-e made
available from income tax returns.
{ 38 }
CHAPTER V I
ECONOMICS OF POTATO STORAGE
6.1 In this chapter an attempt has been made to justify the storing of
potato by the member farmers. Members kept their stock of potato
in the sample cold storages. They had cultivated potato and kept
their produce in the cold storage. The other user group included
those who did not actually cultivate potato, but lent money to the
cultivating farmers. Since cost of cultivation is relatively higher, the
cultivating farmers are almost interlocked to sell their harvested potato
to the same moneylender or so called trading farmer. In Bihar, this
system is widely practiced and, usually, the trading farmer or the
moneylender is none other than the owner of the cold storage. While
selecting sample, care was taken to exclude such interlocked farmers
from the analysis. It deserves a separate treatment. The principal
objective of these analyses is to justify the rationale of storing potato.
With this objective the economics of production of potato was
estimated. The margins available to the benefiting farmers were
compared to the existing prices of potato at the farm gate. Bazaar
Samiti and the market in different months of the reference year.
Table 6.1 presents data on the break-up of average cost of cultivation
of potato per hectare in five different districts. The name of the district
may synonymously be used for the name of cold storage since one
sample cold storage represent one district each. Here the term
farmers/member farmers mean cultivator farmers of the concerned
cold storage. Figures in the following assessment are the average of
the 15 sample farmers per cold storage in the radius of 20 to 30 Km.
{ 39 }
Table No. 6.1
Average Cost of the potato cultivation in five district
(Cost per hectare in Rs.)

Muzaffarpur Saran Samastipur Vaishali Purnea
1 Land 2,800 3,000 3,000 2,800 3,000
Preparation
2 a Seed 12,000 12,000 12,000 12,000 13,500
b Treatment 500 Not 450 Not Not
of seed practiced practiced practiced
3 IManure
a Cow dung 6,750 6,500 6,700 6,000 6,700
b oil cake 3,000 3,100 Not 2,500 Not
practiced practiced
4 Fertilizer
a DAP 2,550 2,450 2,600 2,500 2,700
b Potash 590 590 600 600 650
c Urea 250 260 250 250 270
5 Pesticides
a Alderine Dust 500 500 500 500 500
b Dithane-M-45 1,125 1,200 1,250 1,300 1,250
6 Labour
a Cow dung 600 580 600 600 600
b sowing 3,000 3,000 3,000 3,000 3,000
c Irrigation 750 700 800 750 800
d Soil adjustment 1,500 1,700 1,570 1,500 1,700
e Pesticide 200 250 250 200 250
f Harvesting 1,800 2,000 1,900 1,800 2,000
g Residual 400 400 400 400 400
Total 38,315 38,230 35,870 36,700 37,320
Thus cost of cultivation varies between Rs. 35870 in Samastipur district to

Rs. 38315 in Muzaffarpur district at the reference year's prices. In Table
6.2 Yield and margin per hectare are assessed. While assessing the margin,
the average of the actual farm gate price as revealed by the farmers is mentioned.
{ 40 }
Table 6.2
Economics of Potato Cultivation in the Selected Districts
Particulars Districts
.Muzaffarpur Saran Samastipur Vaishali Purnea

Yield per ha (qnti) 250 270 215 225 210
Price per qntI (Rs) 170 165 175 170 200
Total revenue per ha (Rs.) 42500 44550 37625 38250 42000

Cost of Production
Per ha (Rs.) 38,315 38230 35870 36700 37320
Margin per ha (Rs.) 4185 6320 1755 1550 4680
Rupee earned over 1.11 1.17 1.05 1.05 1.13

one.rupee spent
In Table 6.3, month wise minimum and maximum prices are given as
recorded from the records of the District Krishi Bazaar Samiti.
Table 6.3
Minimum and Maximum Price of Potato in Rs. per Quintal
District Muzaffarpur Saran Samastipur Vaishali Purnea
Months Minimum Maximum Minimum Maximum Minimum Maximum Minimun- Maximum Minimum Maximum
1 January 270 320 325 340 270 500 430 450 350 380
2 February 250 290 325 360 250 500 420 440 300 330
3 March 240 280 350 400 240 300 260 310 350 370
4 April 280 420 400 430 280 300 260 310 380 400
5 May 415 430 400 500 415 250 230 240 400 450
6 June 425 630 500 560 425 450 350 400 450 460
7 July 600 640 560 600 600 475 400 450 500 550
8 August 585 600 620 660 585 550 450 500 500 550
9 September 600 620 630 680 600 600 500 600 600 650
10 October 620 700 620 700 620 600 500 580 650 670
11 November 690 740 650 710 690 600 570 600 650 700
12 December 600 710 650 720 600 600 550 650 600 700
{ 41 }
6.2 The minimum and maximum prices of potato as depicted in the table
above were recorded from the Register of the Price Officer in the
office of the-District Krishi Bazaar Samiti. These prices were recorded
when the stocks made an exit from the Samiti premises. There was
no record of the prices when the stock made an entry into the premises
of the Samitee. However, Table 6.4 may be considered for average
farm gate prices as enumerated from the member farmers of different
cold storages / district. A comparison is made in the same Table
6.4 between the average farm gate price and the minimum exit price
in Bazaar Samiti for the month of March only. For sake of this
comparison, the farm gate price for the month of March only has
been taken into consideration as potato is usually harvested in the
month of February rather later half of this month. Harvesting, stock
piling in the fields itself or exploring nearest cold storage for stocking
etc. take time and the product is generally sold or stocked in the cold
storage during the month of March only.The rationale of the difference
between the farm gate price and the minimum of the exit price at
Bazaar samiti is the value addition on account of transportation,
Commission of the agents , at least at three exit/entries( from the
field, entry into the Bazaar Samiti and Exit from the Samiti).
Table 6.4
Actual Farm Gate Price in March vis - a - vis M i n i m u m Price as
quoted f r o m Bazaar Samiti
Rs. Per Quintal

District Muzaffarpur Saran Samastipur Vaishali Purnea
Months Farm Mini- Farm Mini- Farm Mini- Farm Mini- Farm Mini-
Gate mum Gate mum Gate mum Gate mum Gate mum
Price price at Price price Price price Price price Price price
Bazaar at at at at
Samiti Bazaar Bazaar Bazaar Bazaar
Samiti Samiti Samiti Samiti
January - 270 - 325 - 270 - 430 - 350

February - 250 - 325 - 250 - 420 - 300
March 170 240 165 350 175 240 170 260 200 350
April - 280 - 400 - 280 • - 260 - •
380
May - 415 - 400 - 415 - 230 - 400
June - 425 - 500 - 425 - 350 - 450
July - '600 - 560 - 600 - 400 - 500
August - 585 - 620 - 585 - 450 50
September - 610 - 630 - 600 -' 500 - 600
October - 620 - 620 - 620 - 500 - 650
November - 690 - 650 - 690 - 570 - 650
December - 600 - 650 - 600 - 550 - 600
{ 42 }
6.3 The same information as in Table 6.4 above is used to analyse the
benefit of the farmers that they are getting by storing the rest of the
stock in the nearest cold storage. To assess the benefit an analysis is
done in subsequent paragraphs. The month wise average withdrawals
from the cold storage is depicted in theTable6.6. For further analysis
the price of post harvest period is important. As per the prices as
depicted in the Table 6.3, it reveals the minimum and maximum
prices during a month. Thus for further calculation these prices are
converted into the average prices in each month and depicted in the
following Table 6.5.
Table 6.5
Month-wise average price
(Rs. Per Quintal)
MONTH DISTRICT
January 295 335 385 440 365
February 270 345 375 430 315
March 260 375 320 285 360
April 350 415 290 285 390
May 425 450 335 235 425
June 530 530 440 375 455
July 620 580 540 495 525
August 595 640 570 425 525
September 610 655 600 530 625
October 660 660 610 540 660
November 715 680 645 585 675
December 655 685 600 600 650
To get the benefit of postponed selling of potato by withdrawal of stock ,

another analysis is done in the Table 6.6. In this table the total or actual
average production of the sample farmers adjusted for the stock sold from
the farm itself is considered. It is to be noted that all these analyses are
done on the basis of the average per farmer production of potato of the
sample farmers of different cold storages and not per hectare of sample
{ 43 }
farmers. In Table 6.7 below the average holding of the sample farmers is
depicted along with average holding sown for potato.
Table 6.6
Average Withdrawal of the stock by the Sample Farmer
(Stock in Quintal / Price in Rs. Per Quintal)
With- Aver- Total With- Aver- Aver- With- Aver- Aver- With- Aver- Aver- With- Aver- A v e r -
drawal age Rev- drawal age age drawal age age drawal age age drawal age age
of price enue of price price of price price of price price of price price
stock stock stock stock stock
Jan 295 335 385 440 355
Feb. 270 345 375 430 315
Mar 260 375 320 285 360
Apr. 350 415 290 '285 390
May 425 450 335 235 425
Jun 530 10 530 5,300 440 10 375 3,750 455
Jul. • 10 520 6,200 580 10 540 5,400 10 495 4,950 525
Aug. 20 595 11,900 30 640 19,200 570 10 425 4,250 10 525 5,250
Sep 20 610 12,200 30 655 19,650 20 500 12,000 20 530 10,600 10 625 6,250
Oct 25 560 16,500 25 650 16,500 20 510 12,200 25 540 13,500 10 560 6,500
Nov 30 715 21,450 45 680 30,600 40 645 25,800 35 585 20,475 60 575 40,500
Dec 655 585 600 600 550
Total 105 68,250 140 91,250 90 55,400 110 57,525 90 58,500
An analysis is done to get the assessment of benefit to farmers if they had
no opportunity or infrastructure, that is, cold storage in the vicinity and they
would have sold all produced potatoes in distress vis-a-vis availability of
cold storage and its services. To do this analysis, the farm gate price is
taken as the base price, assuming the rest of the stock that was in reality
stored in the cold storage, could have been sold from the farm at the same
farm gate price. In the following analysis, the stock sold from the farm and
stock sold after storing minus cost incurred in storing and sale is considered.
To get the ultimate benefit, preliminary assessment is done in Table 6.7 in
which the average of some of the basic features of farmers are assessed, for
{ 44 }
example, the average distance from the concerned cold storage to the trading
farmers' field. The average distance ranged from 16 Km in the case of
Samastipur Cold Storage to 25 Km in the case of.Vaishali Cold Storage.
However, a few farms were close within one to two km and some were as far
as 40 Km away. Interestingly, in the average size of holding there had not
been much variation. It ranged from 0.9 hectare in Purnea district to 1.2
hectare in Saran district. There had not been intra district variations. The
reasons for the lesser intra district variations were: homogeneous
characteristics of sample farmers as all had been growing potato. Growing
of potato is a somewhat prestigious avenue in the rural society, as only
slightly prosperous farmers could grow it, due to relatively larger investment
per hectare. It is also evident In Table 6.7 that around 60 per cent of the
average holding was utilised for the potato cultivation. In fact, there had
been a practice of cultivating potato and wheat side by side, for example, 40
per cent of holding in cultivation of wheat and 60 per cent in cultivation of
potato. Since all the sample farmers were the cultivator/member farmers of
the cold storages their maximum proportion of the holding (more than 50
per cent) was utilised for the cultivation of potato. Quantity of potato to be
stored in the cold storage and that to be sold at the farm gate including
stock for the home consumption, were dependent on the factors like capacity
to pay the rent of the cold storage and capacity to bear the cost of storing.
It is evident from Tables 6.6 and 6.7 that the proportion of produce sold
directly from the farm at the farm gate price itself varied from 26 per cent in
Saran district to 33 per cent in Purnea district. That was the limit governed
by the existing market forces.
{ 45 }'
Table 6.7
Average volume of sale at Farm gate prlce^ Cost of Storing etc.
Stock in Quintal /Price in Rs. Per Quintal
District DKC/S Vishwanath Massina C/S Vaishali Pransukha
Muzaffarpur C/S Saran Samastipur C/S Vaishali C/S Purnea
Features of Trading Farmers
1 Distance from cold 20 18 16 25 20
storage ( Km.)
2 Average Size of 1 1.2 1.1 1 . 0.9
Holdings (ha)
3 Area under potato (ha) 0.6 0.7 0,6 0.7 0.6
4 Yield per ha. (qnti) 250 270 215 225 210
5 Production in q n t I * 150 190 130 160 125
6 Potato sold directly
Including imputed value
of self consumption
Quantity 45 50 40 50 35
Price 170 165 175 170 200
7 Stored in Cold storage 105 140 90 110 90
8 Expenditure incurred on
storage ( Rs.)
Transportation (upto store) 735 900 700 800 • 650
Rent paid 10,500 17,500 11,250 13,750 11,250
Gunny bags 1,000 1,100 950 1,000 700
Miscellaneous Expenditure 200 200 200 200 200
Subtotal 12,435 19,700 13,100 15,750 12,800
6.4 Most of the storages tried to interlock the market in which the farmers
had to pay more in terms of hidden rate of rent, where the accrued
rate of Interest used to be adjusted with additional charge on rent.
This, in turn, facilitates more benefit with assurance of their capacity
utilisation. To do this type of interlocking the cold storages' owners
form an informal guild of potato growers and lend money at average
rate of two to three per cent per month to potato growers which
would be adjusted in the rent. For obvious reasons in the course of
sample selection such farmers were avoided. It deserves a separate
treatment.
{"46 }
6.5 On the basis of above information and analysis thereof in Table 6.8
the net benefit per sample farmer is assessed.
Table 6.8
Net Benefit Per farmer in and absence of Cold Storages
(Stock in Quintal /Price in Rs. Per Quintal)
Features of Trading Farmers
1 Potato sold directly
Including imputed value
of self consumption
a Quantity 45 50 40 50 35
b Price 170 165 175 170 200
2 Stored in Cold storage 105 140 90 110 90
3 a Expenditure incurred in storage
b Transportation (upto store) 735 900 700 800 650
Rent per quintal 100 125 125 125 125
c Rent paid 10,500 17,500 11,250 13,750 11,250
d Gunny bags 1,000 1,100 950 1,000 700
e Miscellaneous Expenditure 200 200 200 200 .200
f Sub total 12,435 19,700 13,225 15,875 .12,925
4 Average revenue from the 7,650 8,250 7,000 8,500 7,000
stock sold from the farm
5 Average revenue from 68,250 91,250 55,400 57,525 58,600
withdrawal from the cold
storage
6 l a + 2 (Total quantity 150 190 130 160 125
produced per farmer)
7 Average total cost per farmer 22,990 26,760 21,520 25,690 18,660
8 Assumed revenue if 25,500 31,350 22,750 27,200 25,000
entire stock had been
sold at farm gate price
per farmer
9 Average margin ( Total 2,510 4,590 1,230 1,510 6,340
Revenue - Total cost)
per farmer in distress sale
10 revenue from stock
withdrawal from cold
storage - cost in storage 55,815 71,550 42,175 41,650 45,675
{ 47 }
6.6 A further analysis is attempted to impute the net benefit per sample
farmer, if it is assumed that the farmer had' to sell entire stock at
farm gate price. Thus, in the following Table 6.9, the imputed revenue
from the entire stock sold in the farm gate price is deducted from the
actual revenue from the stock withdrawal from Cold Storage taking
into account of cost in storage and revenue from 40 per cent of the
stock sold at farm gate price.
Table 6.9
Net Benefit Imputed in presence of Cold Storages (per farmer)
IMuzaffarpur C/S Saran Samastipur C/S Vaishali C/S Purnea
Average revenue from 40 % of 63,455 79,800 49,175 50,150 52,675

stock directly sold from the
farm+(revenue from 6 0 % stock
withdrawal from Cold Storages
- Cost in Storage)} - A
A - Imputed Revenue in 60,955 75,210 47,945 48,640 .46,335
distress sale
The same analysis as in the preceding paragraph and table may be converted
into per quintal of potato production by the sample farmer.
Table 6.10
Net Benefit Imputed in presence of Cold Storages (per quintal)

(Amt. in Rs.)

{Average revenue from 40 % 700 675 645 550 710
of stock directly sold from the
farm + ( revenue from 6 0 %
stock withdrawal from Cold
Storages - Cost in Storage)}=A
A - Imputed Revenue in 685 650 635 545 660
distress sale
Thus from the above analysis it is established that the existence and use of
Cold Storage facility in the vicinity always benefit the producers of perishable
products sufficiently even after meeting the cost in storage. In subsequent
Chapter the benefit derived to the cold storage owners isanalysed.
{ 48 }
6.6. A gist of the above analyses is prepared in Table 6.9 in terms of
inflow of income over and above one rupee outgo.
Table 6.11
Net income over one rupee spent with and without Gold Storages
District Muzaffarpur Saran Samastipur Vaishali •Purnea
Return on one rupee 1.72 1.62 1.39 1.17 1.82
spent per farmer
after storing
Return on one rupee 1.11 1.17 1.05 1.05 1.13
spent per farmer if'
entire stock sold at
farm gate price
{ 49 }
CHAPTER - V I I
ECONOMICS OF SAMPLE COLD STORAGES

7.1 In this chapter, annual net income of the sample cold storages has
been worked out by deducting operational expenses from the gross
income realised by the owners of the cold storages. Financial Rate of
Return was worked out to assess the financial viability of investment
in each cold storage.
7.1.2 One of the sample cold storages was running ice plant too but its
income was stated as very erratic and it was operated for a short
period. Therefore, its expenses as well as income were not accounted
for in this study. In case of two stores, where owned produce was
stored, the quantity of seed potato stored being negligible (0.5 to
0.8 MT), was excluded from the analysis.
7.2 Annual Operational Expenses : The Annual Operational Expenses
included electricity, salary of staff, cost of labour, annual repairs and
maintenance, insurance and consumables, administrative and other
expenses. These expenses in the case of five sample cold storages
during 2001 are presented in Table 7 . 1 . The operational expenses
are estimated at the 80 per cent of the capacity utilisattion
Table 7.1
Annual Operational Expenses during 2 0 0 1
Rs. in Lakh
Name of C/S DK C/S Vaishali Vishwanath Massina Pransukha
C/S C/S C/S • C/S
Item of operating expenses
Electricity 4 0 3 3 3.5
Diesel 3.5 6.86 2.8 2.55 3.5
Ammonia and Consumable Store 2.71 4.63 2.77 2.56 4.06
Salary of Staff 1.8 2.73 2.9 1 2.75
Cost of Contract labour 0.8 1 1.99 0.4 1.48
Repairs Building, Plant and 0.34 1.71 0.94 0.69 1.03
Machinery
Insurance 0.93 0.91 0.8 0.58 0.96
Postage and Telegraph ' 0.1 0.2 0.2 0.1 0.3
Administrative Expenses 0.15 2.3 0.71 0.1 0.5
Total 14.34 20.34 16.11 10.98 18.79
{ 50 }
7.3 Cash Flow Statement : The cash flow statements for sample cold
storages were prepared on the basis of assumptions referred at para
2.3.1 in the chapter I I of this report. The average capacity utilisation
of the sample units was found 90 per cent for the fourth year. As
discussed earlier, the sample borrowers had scheduled their
construction in such a way that the unit is completed in the same
year, i.e. February/March, not to miss the 'loading-in' season. The
reference year in fact was the third year of the cold storage and the
average utilisation capacity was 80 per cent. The cash flow statements
worked out for the five operating cold storages are presented in
Table 7.2 The net cash flow was used to work out the FRRs.
Table 7.2
Cash Flow Statements of the Sample Cold Storages
(Rs. in lakhs)
SI. Name of Items Project Salvage
No. Cold Store Years value
including
income in
XV year
Years 1 2 3 4 - 14 15
1 DK Capital Cost 163.50 -- -- --
Operational Expenses — 12.54 14.34 16.13 16.13
Income -- 35.00 40.00 45.00 94.10
Net Cash Flow (-)163.5 22.60 25.66 28.87 77.97
2 Vishwanath Capital Cost 122.50 -- -- -.
Income -- 41.33 47.00 52.87 95.38
Net Cash Flow (-)122.5 31.03 30.89 34.75 76.85
3 Vaishali Capital Cost 116.00 — — --
Income -- 43.75 50.00 56.25 93.25
Net Cash Flow (-)116 25.95 29.66 33.36 70.36
4 Massina Capital Cost 146.00 -- -- —
Operational Expenses -- 9.61 10.98 12.36 12.36
• Income -- 31.94 36.50 41.06 89.06
Net Cash Flow (-)146 22.33 25.52 28.70 76.70
5 Pransukha Capital Cost 180.00 — —
Operational ExfJenses -- 16.44 18.79 21.14 21.14
Income -- 52.50 60.00 67.50 124.90
Net Cash Flow (-)180 36.06 41.21 46.36 103.76
{ 51 }
Table 7.3
Gross Annual Income of Sample Cold Storages
(Rs. in lakhs)
Cold Storage M/s Weight of potato Rental Income * Net Income
in MT at stabilised
capacity of 9 0 %
DK 4,500 45.00 28.87
Vishwanath 4,230 52.88 34.75
Vaishali 4,500 56.25 33.36
Massina 3,285 41.06 28.70
Pransukha 5,400 67.50 46.36
Total 21,915 262.69 172.04
Average of five 4,383 52.54 34.41
* This was worked out at Rs. 1000 per MT for DK Cold Storage and at Rs. 1250
per MT for the rest.
7.4 Financial Rate of Returns (FRR) : FRRs were computed for 5

sample units are presented in Table 7.4.
Table 7.4
Financial Rate of return Sample Cold Storages
(Rs. in lakh)
SI. Name of Cold • PW of cost PW of benefit NPW BCRat PRRat
No. Storage at 15 % DP at 15 % DP 1 5 % DP 15 % DP 15 % DP
1 DK 218.47 219.19 0.61 1.00 17.02 %
2 Vishwanath 192.39 255.70 63.31 1.33 25.78 %
3 Vaishali 209.27 270.99 61.7l' 1.29 26.12 %

f
4 Massina 185.48 200.39 14.91 1.08 17.23 %
5 Pransukha 256.64 319.73 63.09 1.25 23.26 %
{ 52 }
7.5 The average FRR was just 21.82 percent. Among the individual units
FRR varied from 17.02 to 26.12 per cent. Vaishali Cold Storage was
having the highest FRR with capacity utilisation of 80 percent. It is
to be noted that Vaishali cold storage was the only cold storage that
never incurred expenditure on electricity and electric motor and
electrical appliances. This factor brought about internal economies.
It has fetched better FRR than others. For details of the cash flow
exercises Annexure I V to Annexure V I I I may be referred
7.6 Comparison between Financial Rate of Return realised and
Ex - ante Appraisal. In Table 7.5 a comparison is depicted between
the ex ante appraisal and ex post realisation. It is evident that the
FRR in all cases was more than their anticipated level. However,
^ much deviation was not observed. It explains that the task of appraisal
was of good quality. The principal reason for comparatively better
FRR than that of anticipated level is the assumption of incorne. The
rent as assumed in the appraisal was Rs. 100 per quintal while In
reality, except DK Cold storage, rest of them had realised the rent at
the rate of Rs. 125 per quintal.
Table No. 7.5

Comparison between Financial Rate of Return realised and
Ex-ante Appraisal
(Rs. in lakhs)
PW of cost PW of benefit NPW BCR FRR
Name Ex Ex Ex Ex Ex Ex Ex Ex Ex'^ Ex
of cold ante post ante post ante post ante post ante post
Storage
DK 199.34 218.47 204.15 219.19 13.82 0.61 1.07 1 17%' 17.02%
Visliwa 186.08 192.39 203.71 255.7 17.68 63.31 1.09 1.33 18% 25.78%
nath
Vaishali 161.49 209.27 184.12 270.99 22.64 61.71 1.14 1.29 19.4% 26.12%
Massina 161.15 185.48 171.53 200.39 10.38 14.91 1.06 1.08 17% 17.23%
Pran 244.84 256.64 268.57 256.64 23.73 63.09 1.26 1.25 1 8 % 23.26%
sukha;
7.7 Sensitivity Analysis : The sensitivity analysis was done for each
sample cold storage in two ways. First, keeping the cost constant,
income or cash inflow was reduced by 10 per cent of the actual. As
: { 5 3 }
evident from Table No.7.6 the FRR declined by four to ten percentage
points. Second, keeping the cash inflow constant the cash outflow
was increased by 10 per cent. The FRR showed a decline within the
range of three to four percentage points. Thus, sample cold storages
are relatively more sensitive to t h e risk of having more cold
storages in the vicinity and stiff competition thereof rather than
increase in cost.
Table 7.6
Sensitivity Analysis
DK C/S Vishwanath Massina Vaishali Pransukha
C/S C/S C/S Sheet C/S C/S
Actual FRR (%) 17.02 25.78 17.23 26.12 23.26
FRR after 10 % 14.44 22.81 14.49 21.85 19.87
cost escalation (%)
Actual NPW 0.61 68.31 14.91 61.71 63.09
NPW after 10% escalation -21.24 44.07 -3.64 40.79 44.48
in cost
Actual BCR 1 1.33 1.08 1.29 1,25
BCR after 10% cost 0.91 1.21 0.98 1,18 , 1.16
escalation
FRR after 10% decrease in 10.12 14.91 7.13 21.54 11.9
income (%)
BCR after 10% decrease 0.72 0.97 0.77 1.17 0.92
in income
NPW after 10% decrease -61.67 -6.40 -42.39 35.77 -21.44
in income
The utilisation capacity has almost remained stable at about 80 per cent in
the initial years. Therefore, change in rent appears to be an mstftlTnental
variable in free market situation.
7.8 Break even Analyses : The gist of the break-even analyses of five-
sample cold storage is depicted in Table 7.7. Incidentally, the capacity
utilisation is 80 per cent in all five cases. As seen from the table, the
break even volume is widely varying as 65 per cent for DK to 39 per
cent for Vishwanth C/S.The basic reason of the higher break even
point for DK C/S is the electricity factor. (Refer to para 3.12
Chapter I I I ) . This cold storage like other three sample cold storages
had to pay the fixed charges of electricity to BSEB despite frequent
{54 }
tripping and low voltage supply. To overcome this hurdle this specific
cold Storage was having a stand by Generator of 200 kV. This addition
of heavy generator support amounted to increase in operational cost
as well as fixed capital cost. This had adversely affected the FRR as
well as the break-even point. The other three had also been
maintaining stand by generator set of 60 kV and 80 kV. But this unit
was maintaining a Generator set of 200 kV over and above these two
sets of 60 kV and 80 kV.The rationale expressed by the owner of this
storage for having this heavy Generator Set was future expansion
and diversification of the storage plantfor other horticulture products
like mango /litchi. On the other hand, Vaishali C/S had a relatively
lower Break-even Point ( with the best FRR) on account of the same
factor, electricity. This was the only sample cold storage which had
not gone in for BSEB connection. Thus, a substantial amount was
saved by way of expenditure on transformer, heavy electric motors
and other expenditure in getting the supply from the BSEB. The unit
was directly run by the Diesel engine (not through diesel cum
generator set). The remaining three sample units had the break-
even point in the range of 39 to 59 per cent at 80 per cent of the
capacity utilisation. For details of Break Even Analyses exercises sheet
E of Annexure IV to Annexure V I I I may be referred.
Table 7.7
Break -even Analysis
(At 80% capacity utilisation)
\ (Rs. in lakh)
Particulars Sales Fixed Cost Variable Contribution Break Even BEP Sales
/Name of (F) Cost (C) (2-4) Point in Volume
Cold percentage in MT
Storage of the utilised
Capacity of
potato stored
• (3/5)
1 2 3 4 5 6
DK 40 18.75 11.01 28.99 65 % 2,600
Vishawanath 47 18.99 8.57 38.43 39% 1,466
Vaishali 50 17.66 10.63 39.37 39.37 % 1,800
Massina 36.5 16.43 8.57 27.93 59.0% 1,723
Pransukha 60 23.26 12.57 47.43 49 % 2,350
{ 55 }
7.9 Concluding Remarks : In Neo- classical Theory of Prices, Cob Web
Model has its reputation. This model is mainly attributed to the theory
of Agricultural Prices. The axiom ,in fact, is a popular example of
Static Economy, that explains how two static equilibrium. Convergent
and Divergent, are reached over a series of crop / harvesting of an
agriculture product. It assumes that
^t =^(P(t-i)) in supplier side While in demand side

Dt = f( Pt )
Where D is Demand
S is Supply/ production / investment
t is current year
t- 1 is preceding year/ preceding ( same ) crop
P is price
D is Demand
F ( ) is function of for the linear equation used in the cob web model
Both the above functions in linear form equate to get the equilibrium price.
Having different elasticity of demand and supply these two sets of riiodels,
convergent and dvergent, equilibrium is reached in such a way that in
diagrammatic representation of the model these two possibilities look like a
Cob Web, hence the model gets its name. In simplified terms, the investment
decision during the current crop , say potato , by the farmer, for example, ^
the price of the preceding potato crop will be the governing factor. The
lower the price of the preceding crop, the lower will be the area or/and
investment in potato this year and vice-versa. I n the absence of a sensible
i n t e r f e r e n c e , t h e one like cold storage, t h e po-ice m a y go d o w n too
steeply recover or conversely m a y soar beyond control. The findings
of this study prove t h a t t h e price of potato remains controlled in an
open competitive m a r k e t condition w i t h i n Rs. 2 6 0 per quintal in t h e
m o n t h of March to Rs. 7 1 5 per quintal in t h e m o n t h of N o v e m b e r /
December in such a w a y t h a t at both t h e major ends, producers
( o w n e r s of t h e cold s t o r a g e ) a n d C u s t o m e r s ( P o t a t o g r o w i n g
f a r m e r s ) a r e e x t r e m e l y satisfied w i t h m a x i m u m possible social
justice, because public a t large general get their product, potato, on
a much reasonable price. The e l e m e n t of m a x i m u m social justice is
more crucial as potato is still a major source of e n e r g y in f o r m of
glucose / starch for m a j o r proportion of I n d i a n population.
{ 56 }
CHAPTER VIII
REPAYMENT PERFORMANCE
8.1 The recovery level of bank loan inter alia, is an important aggregate
indicator for the success of lending by a bank. This chapter discusses
the repayment performance of the sample financing branches and
the cold storages covered in this study. Each of the cold storages was
financed by one branch of State Bank of India. (Vide details in
Tables. 1) '
Table No. 8 . 1
N a m e of t h e Bank and Cold Storage financed
Name of the Name of the Name of the Cold Location and
controlling Office Financing Branch Storage Financed Distance from
of the SBI the branch branch
Region I ADB SBI DK Cold Sorage Turk! , 15 Kms.
iûzaffarpur Muzaffarpur
Region I I I Hajipur branch Vaishali Cold Mahua ,30 Kms
Muzaffarpur Hajipur Storage
Region I I I Rajendra College Vishwanath Cold Tekniwas, lOKms.
Muzaffarpur branch, Chhapra Storage
Region I I Agriculture Massina Cold 05 Kms.
(Muzaffarpur Marketing Yad Storage
Branch
Region I Purnea Gulab Bagh Pransukha 0 1 Km
Branch Cold storage
8.2 Recovery of Sample Branches : The recovery of total Agriculture

and Allied Loans for the sample branches is given in Table 8.2. Each
branch of State Bank of India had financed one Cold Storage and the
recovery as on 30 June 2002 ranged from 44 to 61 per cent. The
overall recovery of sample branches was about 55 per cent. The
AMY branch of State Bank of India in Samastipur district had the
lowest recovery, i.e. 44 per cent while Hajipur branch of State Bank
of India had the highest recovery, i.e., 61 per cent. It was notable
that all the sample branches of State Bank of India had rescheduled
from the envisaged ten years of repayment period to six-year period
in view of the good margin in the potato during the last two years, as
propounded by the senior bank officers at their Controlling Office of
{ 57 }
the SBI. This may be due to also to shed risk from lending a big
amount to a single private party in a competitive market rate,
prevailing during the time of sanction. In all sample branches of SBI,
the share of Cold Storage demand, although very high in terms of
per unit, was negligible enough to weigh the recovery performance
of the branch as a whole. This was mainly due to the location of the
bank in highly trade centre and assignments entrusted, for example,
ADB function, treasury etc. to the concerned branch. It is to be noted
that SBI in Indian Banking System also looks after same of the function
of a Central Bank, for example, treasury function, currency chest,
clearing home etc. The Demand, Collection and Balance position of
the sample branches is furnished in table 8.2.
Table No. 8.2

DCB of t h e sample branches of t h e S B I as on 3 0 June 2 0 0 1
(Rs. in Lakh)
Demand Collection Recovery %
ADB SBI [viuzaffarpur 153.61 88.30 57.48
Hajipur Branch of SBI , Hajipur 289.90 175.56 60.55
Rajendra college Branch , Chhapra 189.23 98.54 52.07
AMY Branch of SBI Samastipur 252.12 111.37 44.17
Gulab Bagh Branch of SBI Purnea 292.32 169.90 58.12
8.3 Recovery of Sample Units : Recovery of individual units is presented

in Table 8.3 and the overall recovery percentage is 64.97 as compared
to 54.49 of the branches. Of the five sample units, recovery was
more than 100 per cent for three units and less than 71 per cent for
the remaining two units. One of the units i.e. Massina Cold Storage
was an NPA Account with outstanding of about Rs.25 lakh. The high
recovery, in cases of DK C/S, Vishwanath C/S and Pransukha C/S,
firstly due payment from other sources i.e. by sale of property and
from the business sources other than Cold Storage, owned by same
family tree. This was because of awareness of owners about the rate
of interest of bank loan as compared to return on their investments.
Secondly, all the branches of SBI revised the repayment period from
ten to six years to restrict the owners in the less profitable year.
{ 58 }
Thirdly, the average loan amount as percentage of total cost was just
45.30 per cent, which created less debt liability.
Table 8.3
Demand, Collection and Balance of Sample Cold Storages as on 3 1
March 2002
(Rs. in lakh)
Name of Cold Disbursement Rate of Amount Demand Collection Recovery Amt
Storage interest centage Outst
Per of the anding
current
Demand
Period
DK C/S February 2000 12.5% 72.22 20.38 26.98 100.00

to FebruaryZOOl
Vishawanth Decemberl999 14.5% 70.00 20.50 62.14 100.00 7.87

C/S to January 2000
Vaishali C/S February 2000 50.00 21.50 15.00 70.00 38.55

to March 2002
Massina C/S February 1999 14% 45.00 21.35 11.71 54.85 55.15
to March 1999
Pransukha C/S NA 14 % 90.00 24.25 30.36 100.00
{ 59 }
CHAPTER I X
SUMMARY AND CONCLUSIONS

9. INTRODUCTION
9.1.1 Cold storage : Cold storage is an enclosed chamber insulated in a
prescribed manner by refrigeration machinery to provide specified
lower temperature for preserving horticulture, olericulture, floriculture,
dairy, poultry product etc. It will not be wrong to scale down a cold
storage of 5000 MT capacity to a home refrigerator of one cubic
metre @ 1:1470.
9.1.2 In Bihar, cold storages are mainly constructed for storing potato.
9.1.3 In Bihar, 5.19 per cent of Net Sown Area is for cultivation of potato
with an average annual growth of three to four percent in production.
The quantity of potato produced during 2001-02 was 39.94 lakh MT.
9.1.4 Out of 38 districts in Bihar, the total no.of 204 registered cold storages
are located in 26 districts with total installed capacity of 6.8 lakh MT.
9.1.5 The effective gap in the capacity has been worked out to 16.69 lakh
MT assuming 60 per cent of the stocks is preserved in the cold storage
and the rest 40 per cent is sold of the farm gate price or part of it is
kept for home consumption.
9.2 METHODOLOGY
9 . 2 . 1 The study was conducted with an objective of assessing the actual
cost of investment, and to estimate the benefit accrued from the
investment. Besides, analysing the economics of the project, the
ex-post realisation was to be assessed with respect to ex-ante
estimations.
9.2.2 Five different cold storages, one each from different districts across
the State, were selected for the study. All five sample cold storages
had been financed under a scheme, viz.. Special Scheme of Bengal
and Bihar, under which eight cold storages had been refinanced by
NABARD during 1999-2000.
9.2.3 The reference year of the study is the calendar year 2 0 0 1 .
9.3. CHARACTERISTICS AND PROBLEMS OF SAMPLE COLD STORAGES
9 . 3 . 1 All sample cold storages were ideally located either on National
Highway or State Highway. Four of them were located within 15 km
from the town while one was located 30 kms f r o m the district
{ 60 }
headquarters.
9.3.2 Shareholders / Partners belonged to same family and were well
qualified.
9.3.3 The family had already an established business with huge investment.
For example, one had five cinema halls and three brick kilns. Another
had an ownership of chewing tobacco industry of a famous brand in
the country having its corporate office at Delhi. One family.had the
background of tannery business with its corporate office at Calcutta.
These factors were in favour of a better debt equity ratio, established
reputation and good connection with banks and local administration.
9.3.4 By the reference year, four cold storages had two complete cycles of
operation while the fifth had three cycles.
9.3.5 The average capacity utilisation was in the range of 72.5 per cent to
85 per cent.
9.3.6 The averag.e unloading of the stock started during the month of August
with 9 per cent, followed by 20 per cent and rest 50 per cent during
the month of November-December.
9.3.7 None of the sample cold storages had gone for comprehensive policy
of insurance.
9.3.8 The BSEB had entered into the agreement with the cold storage for
a fixed unit of three lakhs in a year in 170 kV load. During the
season, 170 kV load is required just for one to two hours per day
while for the rest of the day 80 kV load is sufficient. Moreover, the
power supply had been erratic at an average rate of five to six hours
of supply per day. But for these facilities, the owners had to pay a
fixed amount to the BSEB. To overcome this problem, four of the
sample cold storages had installed stand by medium to heavy
generator sets. This added to both capital and operational cost.
9.3.9 One of the sample cold storages did not go for power from BSEB at
all. I n s t e a d , it installed diesel engines directly connected to
compressors through fan belts fetching a better FRR.
9.4. IMPLEMENTATION OF THE SCHEME
9 . 4 . 1 There had not been much deviation between actual cost of investment
and that envisaged by the financing bank and NABARD.
9.4.2 All five-sample cold storages had a good prospect of forward linkages.
As in all five districts, the effective gap or further potential was 100
{ 61 }
to 110 per cent of the existing capacity of storing potato.
9.4.3 All five-sample cold storages were found to be technically sound and
consistent with the project specifications.
9.5. COST OF INVESTMENT
9 . 5 . 1 A separate analysis for historical price and that of reference year's
price was not attempted for the gap between the two being one to
one and half years only. With the single digit inflation rate, that too
less than five per cent, the difference between these two sets of
prices would have been negligible.
9 . 5 . 2 The average capacity of all five-sample cold storages worked out to
4870 MT. The average project outlay was worked out at Rs. 145.60
lakh with the break up of Rs.2.90 lakh in land and site development,
Rs.69.80 lakh in civil work, Rs.60.20 lakh in plant & machinery and
Rs.12.70 lakh in other machinery and furniture & fixtures.
9.5.3 The bank loan ranged between 31 and 50 per cent of the total cost.
Hence, the effective margin worked out to more than 50 per cent in
all sample cases. There had not been much deviation in the effective
margin and the margin envisaged in the project.
9.6. ECONOMICS OF POTATO STORAGE
9 . 6 . 1 S I T U A T I O N A W h e n the entire stock is sold f r o m the f a r m at
Farm Gate price
9.6.1.2 The average cost of production of potato was worked out to Rs.35,
870 per Hectare in Samastipur to Rs.38, 315 per Hectare in
Muzaffarpur.
9.6.1.3 The farm gate prices as revealed by the sample farmers ranged
between Rs.165.00 per Quintal in saran and Rs.200.00 per Quintal
in Purnea District.
9.6.1.4 The average yield ranged between 210 Quintal per Hectare in Purnea
to 270 Quintal per Hectare in Saran district.
9.6.1.5 The net margin ranged between Rs. 1550.00 per Hectare in Vaishali
to Rs.4680.00 per Hectare in Purnea district.
9.6.1.6 In per rupee spent analyses the return ranged between Rs. 1.05 in
Samastipur and Vaishali to Rs.1.17 in Saran.
9.6.2 Price Analysis.
9.6.2.1 As per the record of the Price Officer in the District Krishi Bazaar
Samiti, the month-wise minimum and maximum prices of potato were
{ 62 }
recorded. It ranged between Rs.300.00 / quintal as minimum price
in February - March and Rs.650.00 / quintal and Rs.700.00 / quintal,
minimum and maximum respectively in November and December in
Purnea district. Similarly, Rs.250.00 / Rs.240.00 / quintal and
Rs.290.00 / Rs.280.00 / quintal as minimum and maximum price in
the month of February-March respectively in Muzaffarpur district,
which ranged between Rs.690.00 / quintal Rs.600.00 / quintal and
Rs.740.00 / Rs.710.00 / quintal as minimum and maximum price
respectively in the months of November / December.
9.6.2.2 For further analysis, the farm gate prices as revealed by the farmers
and the minimum of Bazaar Samiti's price for the month of March
had been compared. To identify a rational and indicative price for
further analysis, the average of minimum and maximum prices
including that of March had been assessed.
9.6.2.3 It was discovered that the member farmers were selling around 40
per cent of their stock at farm gate price and the rest 60 per cent
was meant for cold storage. This 40 per cent proportion was governed
by the factors like the stock for home consumption, time taken in
finding the cold storages at acceptable rent, to get some quick revenue
or the capacity to part with liquidity etc.
9.6.3 SITUATION B - When 60 percent of the stock is rented in cold
storage and 40 per cent of stocl< is sold at Farm Gate price
9.6.3.1 Usually, withdrawal of the stock starts in the month of June / July
until November-December. It ranged between 10 per cent in the
month of June-July and 25 per cent in the month of September /
October and 30 per cent in the month of November-December.
9.6.3.2 In the case of potatoes, the rent was fixed whether the withdrawal
was made in June or December. Hence, the number of withdrawals
and the amount of stocks withdrawal over a period of time from June
to December did not affect the total rent.
9.6.3.3 The cost of storing potato per sample member farmer ranged between
Rs.10425.00 in Purnea district and Rs.l9, 700.00 in Saran district.
9.6.3.4 The average revenue from the withdrawal of stock from cold storage
minus cost in storage ranged between Rs.41,650.00 in Vaishali district
and Rs.71,550.00 in Saran district per sample farmer.
9.6.3.5 The net average revenue per farmer, that is, revenue from stock
directly sold from the farm plus revenue from stock withdrawal from
{ 63 }
cold storage minus cost in storage ranged between Rs.49,175.00 in
Samastipur and Rs.79,800.00 in Saran district.
9.6.3.6 The net benefit, imputed, per farmer is calculated by deducting the
net revenue from entire stock, if sold, in distress at Farm Gate price
from the farm from average net total revenue as estimated and shown
in para 9.6.3.5 above. It ranged between Rs.47,945.00 per farmer
in Samastipur and Rs.75,210.00 in Saran district.
9.6.3.7 The above analysis was calculated on the basis of per farmer. But the
sample member farmers were having varying land holding and Net
Sown Area under potato. Hence, the same analysis is converted into
per quintal as below.
9.6.3.8 The net benefit per quintal ranged between Rs.545.00 in Vaishali
district and Rs.875.00 in Purnea district.
9 . 6 . 4 COMPARISON OF SITUATION A AND SITUATION B
9.6.4.1 The net return on per rupee spent by the member farmer in case of
situation A ranged between Rs.1.05 in Samastipur and Vaishali district
and Rs.1.17 in Saran district.
9.6.4.2 The net return on per rupee spent by the member farmer in case of
situation B, ranged between Rs.1.17 in Vaishali district and Rs.1.82
in Purnea district.
9.6.4.3 Thus, the net benefit to farmers increased between 12 to 65 per cent
point from storing potato in cold storage.
9.7. ECONOMICS OF SAMPLE COLD STORAGE
9 . 7 . 1 The cash flow statement is prepared for 15 years with taking.50 per
cent and 20 per cent of civil structure and machinery as.salvage
value at the end of the XV year.
9.7.2 The gross annual income ranged between Rs.41.06 lakh in case of
Massina Cold Storage and Rs.67.50 lakh in the case of Pransukha
Cold Storage. While the net income ranged from Rs. 28.70 lakh to
Rs. 46.36 lakh.
9.7.3 The Net Present Value of cost at 15 per cent Discount Factor ranged
between Rs. 185.48 lakh in the case of Massina Cold Storage and
Rs.256.64 lakh in the case of Pransukha Cold Storage. While Net
Present Value of benefit at 15 per cent Discounting Factor ranged
from Rs. 200.39 Lakh in case of Masina C/S to Rs. 319 Lakh in case
of Pransukha C/S.
{ 64 }
9.7.4 The Net Present Worth at 15 per cent discount factor ranged between
Rs.0.61 lakh in the case of D.K.Cold Storage and Rs.63.31 lakh in
the case of Vaishali C/S.
9.7.5 The FRR ranged from 17.02 per cent in case of D.K.C/s to 26.12 per
cent in the case of Vaishali C/S.
9.7.6 The Vaishali C/S fetched the better FRR than others mainly because
of internal economies by operating entirely on diesel engine. Hence,
the unit did-not have to incur expenditure on electricity connections
from BSEB. In fact, the unit has set an example in the existing
situation of electricity / source of energy situation in Bihar.
9.7.7 In sensitivity analysis, it was discovered that the sample cold storages
were relatively more sensitive to the risk of having more cold storage
in the vicinity and the reluctant competition rather than increase in
cost.
9.7.8 The break even volume ranged between 39 per cent in the case of
Vaishali C/S to 65 per cent in the case of D.K. C/S.
9.8. REPAYMENT PERFORMANCE
9 . 8 . 1 All five-sample cold storages were financed by branches of State
Bank of India. Four of them were within the control of Muzaffarpur
Region - 1 , I I & I I I of the State Bank of India while the fifth belonged
to Purnea Regional Office of the SBI.
9.8.2 The health of the branches in terms of recovery percentage was
satisfactory as most of them were having recovery percentage of
more than 50 except the Agriculture Marketing Yard Branch of SBI in
Samastipur where the recovery percentage was of 44.17 as on 30
June 2 0 0 1 . For the remaining four branches, this ranged between
52.07 per cent (RCC Branch of Chhapra) and 60.55 per cent (Hajipur
branch).
9.8.3 The rate of interest charged varied from 12.5 per cent in case of
ADB, SBI, Muzaffarpur to 14.5 per cent in case of RCC, Chhapra.
9.8.4 Massina C/S account with AMY branch of Samastipur was classified
as NPA with outstanding amount of Rs.25.16 lakh.
{ 65 }
ANNEXURE- I
Optimum Storage condition for Horticulture Products

Commodity Temperature Relative Usual Duration
(°C) Humidity (%) of Storage
(Weeks)
ROOT & TUBER CROPS

Potato (Fresh) 0-2 95-98 35-40
Potato (Seed) 4-7 95-98 35-40
Potato (For 8-12 95-98 35-40
Processing) 5-8 80-90 2-4
Cassava 0-5 85-95 20-24
Sweet Potato 12-14 85-90 20-24
Yam 13-15 Near 100 20-24
Ginger 27-30 60-70 3-5
12-14 65-75 20-24
CURING OF ROOT & TUBER CROPS
Potato 15-20 85-90 1-2
Sweet Potato 30-32 85-90 1
Yam 32-40 90-100 1
Cassava 30-40 90-95 1
Garlic 30-45 60-75 1
VEGETABLES
Cauliflower 0-2 85-95 7
Peas 2-3
Asparagus 3-4
Beans 1-2
Cabbage 4-12
Carrot 0-2 90-95 20-24
Corn 1
Lettuce 1
Mushroom
Radish 3-5
Chillies (Green) 0-10 60-70 24
French Beans 2-7 90-95 1-2
Tamarind 32-48
{ 66 }
Commodity Temperature Relative Usual Duration
(OC) Humidity (%) of Storage
(Weeks)
VEGETABLES
Water melon 7-13 80-90 2
Musk melon 85-90 1-2
Bhendi 7-13 85-90 2
Tomato(Ripe) 85-90 1-2
Cucumber above 7-13 90-95 2
Brinjal 90-95 2-3
Tomato(Unripe) above 13 85-90 4-5
FRUIT CROPS
Apple 16-32
Peaches 2-4
Pears 0-2 85-90 12-26
Plums 4-8
Oranges 16-20
Pomegranate 2-7 80-85 4-6
Mandrin 2-7 85-90 16-20
Papaya 7-13 80-85 1-2
Passion Fruit 4-5
Guava 3
Lemon & Lime 7-13 85-90 16-20
Pineapple 4-6
Banana(Green) 1-2
Banana(Ripe) above 13 80-85 3
Plantains 1-2
Grapefruit above 13 85-90 16-20
Mango 4-7 .
FLOWER CROPS
Carnation 0-1 90-95 4-12

Chrysanthemum 3-4
Rose 0.5-3 90-95- 1-2
Gladiolous 1-4 90-95 3-4
Gerhera 4 90-95 3-4
Anthurium 13 90-95 3-4
( 67 }
ANNEXURE I I
NUMBER OF COLD STORAGE UNITS & THEIR CAPACITY - BIHAR (DURING 2000-01)
S.N. N a m e of t h e district No. of cold s t o r a g e Capacity ( M T ) N a t u r e of cold s t o r a g e
Private Co-op Multipurpose Potato
1 Araria 3 7700 2 1 3
2 Aurangabad 1 1400 1 1
3 Begusarai 11 61700 10 1 11
4 Bhabua 1 5000 1 1
5 Bhagalfjtir 5 14100 4 1 5
6 Bhojpur 1 14100 0 1 1
7 Buxar 3 7950 3 3
8 Darbhanga 1 700 1 1
9 East Champaran 11 42250 10 1 1 10
10 Gaya 16 46053 16 6 10
11 Gopalganj 10 29400 10 1 9
12 Jahanabad 3 7500 2 1 3
13 Katihar 2 5200 2 2
00 14 Khagaria 1 6500 1 1
15 Lakhisarai 1 2200 1 1
16 Madhubani 1 4000 0 1 1
17 Muzaffarpur 7 31450 7 2 5
18 Nalanda 27 69600 26 1 1 26
19 Nawadah 4 6400 4 4
20 Patna 27 79700 25 2 10 17
2 1 • Purnea 4 14250 4 4
22 Rohtas 5 12650 4 1 5
23 Sharsa 1 4000 1 1
24 Samastipur 7 40400 7 7
25 Saran 16 56750 16 16
26 Seikhpura 1 4000 0 1 1
27 Sitamarhi 2 6700 1 - 1 2
28 Siwan 8 16450 8 8
29 Vaishali 16 48050 14 2 2 . 14
30 West Champaran 8 32012 6 2 2 6
Total 204 678165 187 17 25 179
Source : 1. Department of Marketing and Inspection, Faridabad 2. Cold Storage Owners' Association 3. State Directorate of Horticulture 4. IMABARD - Subsidy Scheme
ANNEXURE I I I ( a )
YEAR-WISE NUMBER OF COLD STORAGES AND THEIR CAPACITY IN INDIA
Year Numbers Capacity (MT) Average capacity
(MT/unit)
1964 359 305,513 851
1965 600 682,100 1,137
1966 706 266,470 377
. 1967 797 1,115,375 1,399
1968 929 1,260,346 1,357
1.969 1,091 1,551,256 1,422
1970 1,218 1,638,331 1,345
1971 1,318 1,693,980 1,285
1972 1,403 1,764,332 1,258
1973 1,503 1,869,974 1,244
1974 1,576 1,939,524 1,231
1975 1,615 1,993,992 1,235
1976 1,747 2,126,935 1,217
1977 1,971 2,620,699 1,330
1978 2,072 3,061,355 1,477
1979 2,300 3,525,608 1,533
1980 2,283 3,964,525 1,737
1981 2,370 4,374,785 , 1,846
1982 2,457 4,627,624 1,883
1983 2,495 4,818,336 1,931
1984 2,488 5,022,568 2,019
19.85 2,522 5,099,115 2,022
1986 2,607 5,402,160 2,072
1987 2,659 5,578,442 2,098
1988 2,749 6,142,014 2,234
1959 2,797 6,793,377 2,429
1990 2,942 7,727,849 2,627
1991 2,970 7,787,599 2,622
1992 2,973 7,790,000 2,620
1993 2,053 8,090,000 2,650
1994 3,124 8,170,000 2,6l5
1995 3,167 8,580,000 2,709
1996 3,253 8,730,000 2,684
1997 3,443 10,353,090 3,007
1998 3,502 10,739,030 3,067
1999 3,597 11,328,900 3,150
2000 3,886 13,621,981 3,505
2001 4,146 14,952,000 3,606
{69}
ANNEXURE I I I ( b )
SECTOR W I S E D I S T R I B U T I O N OF COLD STORAGES AS ON 3 1 . 1 2 . 2 0 0 1
S.no State/UT Private Sector Cooperative Public Sector Total ( 3 + 4 + 5 ) Average Share ( % )
capacity ( M T / u n i t )
Number Capacity Number Capacity Number Capacity Number Capacity
1 Andaman & Nichobar 1 170 0 0 1 40 2 210 105 0.00
Islands (UT)
2 Andhra Pradesh 179 446,601 13 9,270 8 1,190 • 200 457,061 2,285 3.06 •
3 Arunachal Pradesh
4 Assam 3 9,000 0 0 10 4,420 13 13,420 1,032 0.09
5 Bihar 186 605,865 17 63,300 0 0 203 669,165 3,296 4.48
6 Chandigarh (UT) c n,216 0 0 0 0 5 11,216 2,243. 0.08
7 Delhi 75 98,845 1 2,701 16 17,681 92 119,227 1,296 0.80
8 Gujarat 303 691,143 15 0 8 8,184 327 716,199 2,190 4.79
9 Goa 21 1,960 0 9,270 2 281 23 2,241 97 0.01
10 Haryana * 192 262,424 9 0 0 201 276,245 1,374 1.85
11 Himachal Pradesh 8 11,413 2 0 7 6,195 17 18,375 1,081 0.12
12 Jammu & Kashmir 14 38,617 3 63,300 1 46 18 40,797 2,267 0.27
o 13 Jharkhand 11 29,750 8 0 1 2,250 20 57,000 2,850 0.38
14 Kerala 145 28,295 6 2,701 12 1,880 163 31,255 192 0.21
15 Karnataka 71 67,267 13 16,872 13 3,244 102 77,200 757 0.52
16 Lakshadweep (UT) 0
17 Maharashtra 303 330,752 53 13,821 29 7,851 385 358,442 931 2.40
18 Madhya Pradesh 159 668,364 21 767 6 3,760 186 751,288 4,039 5.03
19 Manipur 2,134
20 IMeghalaya 25,000
21 Mizoram 1,080
22 Nagaland 6,689
23 Orissa 60 151,150 9 6 4,190 75 166,905 . 2,225 1.12
24 Pondicherry (UT) 2 115 1 19,839 2 35 5 200 40 0.00
25 Punjab * * 379 1,016,000 8 80,164 3 14,440 390 1,049,264 2,690 7.02
26 Rajasthan 77 243,854 9 3,832 1 14 87 247,700 2,847 1.65
27 Sikkim
28 Tamilnadu 91 91,010 13 9,284 7 4,587 111 104,881 945 0.70
29 Tripura 1 . 2,750 2 7,000 1 1,000 4 10,750 2,688 0.07
30 Uttar Pradesh * * 1,046 5,464,000 80 238,000 3 8,000 1,129 5,710,000 5,058 38.19
31 West Bengal 335 3,787,754 51 273,677 0 0 386 4,061,431 10,522 27.17
TOTAL 3,667 14,058,315 340 803,869 137 88,288 4,144 i4,950,47: 3,608 100.00
ANNEXURE- IV A
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / S D.K.

ICE AND COLD STORAGE PVT. LTD. MUZAFFARPUR
EX-POST TOTAL COST
SI Investment items/components Actual
A Site Development 1500000
B Civil Structure 7000000
C Plant and machinary 7050000
E Pre operative expense 8000000
Total Project Cost 16350000
Beneficiary contribution- 8950000
Bank loan 7400000

ANNEXURE- IV B
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s ICE COLD STORAGE Pvt. LTD. MUZAFFARPUR
EX-POST INCOME AND EXPENDITURE STATEMENT
(Rs. in lakhs)
SI. Particulars YEARS
A. Income 1 2 3 4 5 6 7 8 9 10
onwards
1 Installed capacity (MT) 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00
2 Annual capacity utilization (MT) NIL 70% 80% 90% 90% 90% 90% 90% 90% 90%
3 Quantity of potato stored (MT) NIL 3500.00 4000.00 4500.00 4500.00 4500.00 4500.00 4500.00 ^500.00 4500.00
4 Income through rent on storage (Rs. 1000/MT) NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00
5 Income through sale of ice slabs NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
6. Total income NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00
B Expenditure
1 Power, fuel, refrigerant and other chemicals NIL 9.63 11.01 12.38 12.38 12.38 12.38 12.38 12.38 12.38
2 Salary and wages NIL 1.80 2.06 2.32 2.32 2.32 2.32 2.32 2.32 2.32
-
3 Repair and maintenance NIL 0.30 0.34 0.39 0.39 0.39 0.39 0.39 0.39 0.39
4 Insurance NIL 0.81 0.93 1.04 1.04 1.04 1.04 1.04 1.04 1.04
5 Total expenditure NIL 12.54' 14.34 16.13 16.13 16.13 16.13' 16.13 16.13 16.13
C Operating profit NIL 22.46 25.66 28.37 28.37 28.37 28.37 28.37 28.37 28.37
ANNEXURE- IV C
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/S D.K. ICE AND COLD STORAGE Pvt. Ltd. MUZAFFARPUR
EX-POST CSASH FLOW STATEMENT
(Rs. in lakhs)
SI Particulars YEARS
1 2 3 4 5 S 7 8 9 10
onwards
1 Gross operating profit NIL 22.46 25.66 28.87 28.87 28.87 28.87 28.87 28.87 28.87
2 Interest on term loan NIL 9.25 9.25 9.25 6.94 4.63 2.31
3 Depreciation NIL 10.55 10.55 10.55 10.55 10.55 10.55 10.55 10.55 10.55
4 Profit before tax NIL 2.66 5.86 9.07 11.38 13.69 16.01 18.32 18.32 18.32
00
5 Income tax (35%) NIL 0.80 0.00 3.17 3.98 4.79 5.60 6.41 6.41 6.41
6 Profit after tax NIL 1.86 5.86 5.90 7.40 8.90 10.41 11.91 11.91 11.91
7 Cash accurals NIL 21.66 25.66 25.70 24.89 24.08 23.27 22.46 22.46 22.46
8 Term loan outstanding at the beginning of the year NIL 74.00 74.00 55.50 37.00 18.50 0.00 0.00 0.00 0.00
9 Repayment of interest on term loan NIL 16.41 10.94 9.38 7.82 6.25 0.00 0.00 0.00 0.00
10 Repayment of term loan NIL Nil 18.50 18.50 18.50 18.50 0.00 0.00 0.00
11 Total repayment NIL 61.41 29.44 27.88 26.32 24.75 0.00 0.00 0.00 0.00
12 Term loan outstanding at the end of the year 74.00 74.00 55.50 37.00 18.50 0.00 0.00 0.00 0.00 0.00
13 DSCR ' NIL 1.32 0.87 0.92 0.95 0.97 ' —
14 Average DSCR 1.01

ANNEXURE- I V D
M / s D. K. ICE and Cold storage Pvt. Ltd. Muzaffarpur
EX-POST FINANCIAL INDICATORS
Rs. in lakha
SI Particulars Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Capital Cost 163.5
2 Recurring Cost NIL 12.54 14.34 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13
-NI
-C^
3 Total Cost 163.50 12.54 14.34 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13
4 Income NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45,00 45.00 94,10
4 Net Income NIL 22.46 25.66 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 77.97
5 PW of cost at 15% DF 218.57333
6 PWVof benefit at 15% DF 219.18632
7 NPW 0.6129882
8 ecR 1.00
IRR 17.02%
__
ANNEXURE- I V E
M/SD.K. ICE AND COLD STORAGE Ltd. MUZAFFARPUR

EX-POST BREAK EVEN ANALYSIS
Rs. Lakh
SI Particulars At 8 0 % capacity utilisation
1 Sales 40
2 Fixed cost 18.75
3 Variable cost 11.01
3 Contribution 28.99
4 BEP sales volume in MT 2600 MT
5 BEP ( % ) 65%
ANNEXURE- V A
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s

V I S H W A N A T H COLD STORAGE PVT. LTD.
EX-POST TOTAL PROJECT COST
A SITE DEVELOPMENT 350000
B CIVIL STRUCTURE 6900000
C PLANT AND MACHINARY 4000000
E PRELIMINARY & PRE-OPER 1000000
TOTAL PROJECT COST 12250000
Beneficiary Contribution (inc.) 5250000
Bank loan 7000000

ANNEXURE- V 6
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s V I S H W A N A T H COLD STORAGE Pvt. Ltd.

(Rs. In lakhs)
SI •Particulars •YEARS
A. Income 1 2 3 4 5 6 7 8 9 10
onwards
1 Installed capacity (MT) 4700 4700 4700 4700 4700 4700 4700 4700 4700 4700
3 •Quantity of potato stored (MT) NIL 3290 3760 4230 4230 4230 4230 4230 4230 4230
•vl
4 Income through rent on storage (Rs. 125/Qt) NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88
5 Total income NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88
B Expenditure
1 Electricity, Gas. fuel, lubricants and Utilities NIL 7.50 8.57 9.64 9.64 9.64 9.64 9.64 9.64 9.64
2 Establishment & Office Expenses NIL 1.50 1.71 1.93 1.93 1.93 1.93 1.93 1.93 1.93
4 Labour Charges NIL 2.70 3.09 3.47 3.47 3.47 3.47 3.47 3.47 3.47
5 Insurance NIL 0.70 0.80 0.90 0.90 0.90 0.90 0.90 0.90 0.90
6 Total expenditure NIL 14.10 16.11 18.13 18.13 18.13 18.13 18.13 18.13 18.13
ANNEXURE - V C
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VISHWANATH COLD STORAGE PVT. LTD.
EX-POST CASH FLOW STATEMENT
(Rs. in lakhs)
1 2 3 4 5 6 7 8 9 10
onwards
1 Gross operating pofit NIL 27.03 30.89 34.75 34.75 34.75 34.75 34,75 34.75 34.75
2 Interest on term loan NIL 10.53 10.53 9.02 7.52 . 6.02 4.51 3.01 1.50 0.00
-si 4 Profit before tax NIL 9.05 12.91 18.28 19.78 21.29 22,79 24,29 25.80 27.30
CO
5 Income tax (35%) NIL 3.17 4.52 6.40 6.92 7.45 7.98 8.50 9,03 9.56
6 Profit after Tax NIL 5.88 8.39 11.88 12.86 1.84 14.81 15.79 16,77 17.75
7 Cash accurals NIL 23.86 26.37 28.35 27.83 27,30 27.78 26.25 25,72 25.20
8 Term loan outstanding at the beginning of the year NIL 70.00 74.00 52.50 35.00 17.50 0.00 0.00 0,00 0.00
9 Repayment of interest of term loan NIL 10.15 10.15 7.61 5.08 2.58 0.00 0.00 0,00 0.00
10 Repayment of term loan NIL 0.00 17.50 17.50 17.50 17.50 0.00 0.00 0.00 0
11 Total repayment NIL 10.15 27.65 25.11 22.58 20.08 0.00 0,00 0.00 0.00
12 Term loan outstanding at the end of year 70.00 52.50 35.00 17.50 0.00 0.00 0.00 0,00 0.00 0,00
13 DSCR NIL 2.35 0.95 1.13 1.23 1.36 —
14 Average DSCR
ANNEXURE - V D
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s V I S H W A N A T H COLD STORAGE PVT. LTD.
Rs. in lakha
SI Particulars Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Capital Cost 122.5
CD
3 Total Cost 122.50 14.10 16.11 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13
4 Income NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 95.38
4 Net Income -122.50 27.03 30.89 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 77.25
5 NPV of cost at 15% DF 192.39
6 NPV of benefit at 15% DF 255.70
8 NPW 63.31
9 BCR at 15% DF 1.33
IRR 25.78%
ANNEXURE - V E
EX-POST BREAK EVEN ANALYSIS OF A COLD STORAGE PROJECT

M / s V I S H W A N A T H COLD STORAGE Pvt. Ltd
Rs. Lakh
SI Particulars At stabilised ( 9 0 % ) capacity utilisation
1 Sales 47.00
2 Fixed cost 6.74

00
o
4 BEP sales volumein MT 1466
5 BEP ( % ) 39
ANNEXURE- V I A
PROJECT FOR ESTABLISHMENT OF

A COLD STORAGE BY M/s VAISHALI SHEETH BHANDAR PVT. LTD..1
A SITE DEVELOPMENT 300000
C PLANT AND MACHINARY 3500000
00 E OTHER MACHINERY AND EQUIPMENTS 1300000
F OTHER 500000
Beneficiary Contribution (inc. Unsecured to) 6600000'
Bank loan 5000000

ANNEXURE- V I B
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s V A I S H A L I SHEETH BHANDAR Pvt. Ltd.

(Rs. in lakhs)
A. Income 1 2 3 4 5 6 7 8 9 10
onwards
1 Installed capacity (IÎT) 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
3 Quantity of potato stored (MT) NIL 3500 4000 4500 4500 4500 4500 4500 4500 4500
00
IV)
4 Income through rent on storage (Rs. 125/Qt.) NIL 43.75 50 56.25 56.25 56.25 56.25 56.25 56.25 56.25
5 Total income NIL 43.75 50 56.25 56.25 56.25 56.25 56.25 56.25 56.25
B Expenditure
1 Power, fuel refrigerant and other chemicals NIL 9.30 10.63 11.96 11.96 11.96 11.96 11.96 11.96 11.96
4 Interest on working capital NIL 3.20 3.66 4,11 4.11 4.11 4.11 4.11 4.11 4.11
5 Insurance NIL 0.80 0.91 1.03 1.03 1.03 1.03 1.03 1.03 1.03
6 Total expenditure NIL 17.80 20.34 22.89 22.89 22.89 22.89 22.89 22.89 22.89
ANNEXURE-VIC
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s V I S H W A N A T H COLD STORAGE PVT. LTD.
(Rs. in lakhs)
. . .
SI YEARS
Particulars
1 2 3 4 5 6 7 8 9 10
onwards
1 Gross operating pofit NIL 25.95 29.66 33.36 33.36 33.36 33.36 33.36 33.36 33.36
2 Interest on term loan NIL 7.27 6.68 5.52 4.36 2.91 1.45 0.00 0.00 0.00
00 4 Profit before tax NIL 12.19 16.47 21.34 22.51 23.96 25.41 26.86 26.86 26,86
CO
5 Income tax (35%) NIL 4.26 5.77 7.47 7.88 8.39 8.89 9.40 9.40 9.40
7 Cash accurals NIL 21.59 23.89 25.89 25.49 24.98 24.47 23.96 23,96 23,96
8 Term loan outstanding at the beginning of the year NIL 50.00 74.00 37.50 25.00 12.50 0.00 0,00 0,00 0.00
9 Repayment of interest of term loan NIL 7.00 7.00 5.25 3.50 1.75 0.00 0.00 0.00 0,00
10 Repayment of term loan NIL NIL 12.50 12.50 12.50 12.50 0,00 0.00 0,00 0,00
11 Totalrepayment NIL 7.00 19.50 17.75 16.00 14.25 0.00 0.00 0,00 0,00
IZ. Term loan outstanding at the end of year 50.00 50.00 37.50 25.00 12.50 0.00 0.00 0.00 0.00 0.00
13 DSCR NIL 3.10 1.23 1.46 1,59 1.75 0.00 - • - -

ANNEXURE- V I D
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s V A I S H A L I SHEETH BHANDAR PVT. LTD.
Rs. in lakha
SI Particulars Year
1 2, 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Capital Cost 166
00
3 Total Cost 166.00 17.80 20.34 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89
4 Income NIL 43.75 50.00 56.25 56.25 56,25 56.25 56.25 56.25 56.25 56.25 56.25 56.25 56.25 93.25
4 Net Income -166.00 25.95 29.66 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 70.36
5 PW of cost at 15% DF 209.27
6 PW of benefit at 15% DF 270.99
8 NPW 61.71
9 BCRat 15% DF 1.29
IRR 26.12%
ANNEXURE- V I E
M / s V A I S H A L I SHEETH BHANDAR Pvt. Ltd
Rs. Lakh
1 Sales 50.00
2 Fixed cost 6.06
00 3 Variable cost 10.63
4 BEP sales volume in MT 1800
5 . BEP(%) 45
ANNEXURE - V I I A
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASSINA.

COLD STORRAGE PVT. LTD. SAMA
EX-POST RECOMMENDED TOTAL PROJECT COST
SI Investment items/components Actual (Rs)
A SITE DEVELOPIÎENT 300000
C PLANT AND JVIACHINARY 6500000

00
E PRE OPERATIVE EXPENSES 800000
Beneficiary Contribution (inc. unsecured loan) 10000000
• 4600000
Bank loan
ANNEXURE - V I I B
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA. COLD STORAGE Pvt. Ltd. SAMASTIPUR
(Rs. in lakhs)
A. Income 1 2 3 4 5 6 7 8 9 10
onwards
1 Installed capacity (MT) 3650 3650 3650 3650 3650 3650 3650 3650 3650 3650
2 Annual capacity utilization (MT) NIL 70% 80% 90% , 90% 90% 90% 90% 90% 90%
00 3285 3285 3285
3 Quantity of potato stored (MT) NIL 2555 2920 3285 3285 3285 3285
4 Income through rent on storage (Rs. 1250/MT) NIL 31.94 36.6 41.06 41.06 41.06 41.06 41.06 41.06 41.06
5 Total income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06
B Expenditure
1 Power, fuel, refrigerant and other chemicals NIL 7.50 8.57 9.64 9.64 9.64 9.64 9.64 9.64 9.64
4 Insurance NIL 0.51 0.58 0.66 0.66 0.66 0.66 0.66 0.66 0.66
5 Total expenditure NIL 9.61 10.98 12.36 12.36 12.36 12.36 12.36 12.36 , 12.36
G Operating profit NIL 22.33 25.52 28.70 28.70 28.70 28.70 28.70 28.70 28.70
ANNEXURE - V I I C
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA COLD STORAGE Pvt. Ltd. SAMASTIPUR
(Rs. in lakhs)
1 2 3 4 5 6 7 8 9 10
onwards
00 4 Profit before tax NIL 8.77 8.41 12.60 13.62 14.64 15.65 16.67 17.68 18.70
00
5 Income tax (35%) NIL 3.07 2.94 4.41 4.77 5.13 5.48 5.84, 6.19 6.55
7 Cash accurals NIL 19.26 22.57 24.29 23.94 23.58 23.23 22.87 22.51 22.16
8 Term loan outstanding at the beginning of the year NIL 45.00 45.00 34.75 23.50 12.25 1.00
9 Repayment of interest of term loan NIL 6.30 6.30 4.73 3.15 4.06 1.58 2.03 1.02 0.00
10 Repayment of term loan NIL Nill 11.25 11.25 11.25 11.25 0.00 0.00 0.00 0
12 Term loan outstanding at the end of year 46.00 46.00 34.75 23.50 12.25 1.00 1.00 1.00 1.00 1.00
13 DSCR NIL 2.50 • 1.09 1.30 1.42 1.31 12.48 9.54 18.64 -

ANNEXURE - V I I D
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA COLD STORAGE Pvt. Ltd. SAMASTIPUR
Rs. in lakha
SI Particulars Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Capital Cost 146
00
CO
3 Total Cost 146.00 9.61 10.98 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36
4 Income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06
4 Net Income -146.00 22.33 25.52 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70
• •
6 NPV of benefit at 15% DF 194.49
8 NPW 9.01
9 BCR at 15% DF 1.05
IRR 16.45%
ANNEXURE - V I I E
MASINA. COLD STORAGE Pvt. Ltd. SAMASTIPUR
Rs. Lakh
1 Sales 36.50
2 Fixed cost 1.83
CD
O
4 BEP sales volume in MT 17.23
5 BEP ( .%) 59
ANNEXURE - V I I I A
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s

PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA
SI investment Items/components Actual ( R s )
A SITE DEVELOPIÊNT 0
C PI_ANT AND MACHINARY 8700000

CO
E PRE OPERATIVE EXPENSES 900000
F ELECTRICALS 400000
Beneficiary Contribution (inc. unsecured loan) 9000000
Banl< loan 9000000

ANNEXURE - V I I I B
PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M / s PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA
(Rs. in lakhs)
A. Inconne 1 2 3 4 5 6 7 8 9 10
onwards
1 Installed capacity (I^T) 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000
CO
IV)
3 Quantity of potato stored (MT) NIL 4200 4800 5400 5400 5400 5400 5400 5400 5400
4 Income through rent on storage (Rs. 1250/MT) NIL 52.5 60 67.5 67.5 67.5 67.5 67.5 67.5 67.5
5 Total income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06
B Expenditure
1 • Power, fuel, refrigerant and other chemicals NIL 11.00 12.57 14.14 14.14' 14.14 14.14 14.14 14.14 14.14 •
4 Insurance NIL 0.84 0.96 1.08 1.08 1.08 1.08 1.08 1.08 1.08
5 Total expenditure NIL 16.44 18.79 21.14 • 21.14 21.14 21.14 21.14 21.14 •21.14
C Operating profit , NIL 36.06 41.21 46.36 46.36 46.36 46.36 46.36 46.36 46.36
ANNEXURE - V I I I C
(Rs. in lakhs)
1 2 3 4 5 6 7 8 9 10
onwards
CD
CO
4 Profit before tax NIL 16.70 15.20 20.35 22.26 24.16 26.06 27.96 29.86 31.76
5 Income tax (35%) NIL 10.86 9.88 13.23 14.47 15.71 16.94 18.18 19.41 20.65
6 Profit after Tax NIL 30.22 35.89 39.24 38.57 37.91 37.24 36.58 35.91 35.25
7 Cash accurals NIL 90.00 74.00 67.50 45.00 22,50 0.00 0.00 0.00 0.00
8 Term loan outstanding at the beginning of the year NIL 12.60 9.45 6.30 3.15 7.60 0.00 0.00 0.00 . 0.00
9 Repayment of interest of term loan NIL 12.60 9.45 6.30 3.15 7.60 0.00 0.00 0.00 0.00
10 Repayment of term loan NIL Nill 22.50 22.50 22.50 22.50 0.00 0.00 0.00 0
12 Term loan outstanding at the end of year 90.00 90.00 67.50 45.00 22.50 0.00 0.00 0.00 0.00 0.00
13 DSCR NIL 2.40 1.12 1.36 1.50 1.26 —

ANNEXURE - V I I I D
Rs. in lakha
SI Particulars Year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Capital Cost 180
2 Recurring Cost 16.44 18.79 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14
CO
3 Total Cost 180.00 16.44 18.79 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14
4 Income NIL 52.50 60.00 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 124.90
4 Net Income -180.00 36.06 41.24 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 103.76
6 NW of benefit at 15% DF 326.78
7 NPW 70.14
8 BCR 1.27
IRR 23.26%
ANNEXURE - V I I I E

M/s PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA
Rs. Lakh
SI Particulars At 80<Vb capacity
1 Sales 60
2 Fixed cost 5.26
CD 3 Variable cost 12.57

CJl
4 BEP sales volume in MT 2350
5 BEP ( %) 49
ANNEXURE IX
SANCTIONED SCHEMES (REFINANCE) UNDER SPECIAL SCHEME OF WEST BENGAL & BIHAR
Code No Name of the Cold Constitution Description of Types of Unit Number of Types of Address
Storage (Proprietor, the commodity Technology chamber Unit (New/
partnership to be stored (Convention Expansion/
etc.) al/CA/MA) Onion
Godown)
1 2 3 4 5 6 7 8
PAT-2 M/s Vishwanath PVT. LTD. Potato Vegetables, CT 1 New M/s Vishwanath Cold
Cold Storage Fruits Storage, Tekniwas,
Siwan Road, Chapra
PAT-3 M/s Vaishali Sheath PVT LTD. Potato Vegetables, CT 2 New M/s Vaishali Sheath
Bhandar Fruits Bhandar, Mahua, Vaishali
CD
PAT-4 M/s Himananga Cold PVT LTD. Potato Vegetables, CT 2 New M/s Himananga Cold
Storage Fruits Storage, Ramzanpur,
Begusarai
PAT-5 M/s Rakesh Mukesh Cold PVT LTD. Potato Vegetables, CT 2 New M/s Rakesh Mukesh Cold
Storage and Ice Plant Fruits Storage and Ice Plant,
Ulao, Begusarai
PAT-6 M/s DK Ice and PVT LTD. Potato Vegetables, CT 2 New M/s DK Ice and Cold
Cold Storage Fruits Storage, Turki, Muzaffarpur
PAT-7 M/s Massina Cold PVT LTD. Potato Vegetables, CT 1 New M/s Massina Cold Storage,
Storage Fruits Mukhtapur, Samastipur
PAT-9 M/s JD Cold Storage PVT LTD. Potato Vegetables, CT
Fruits
PAT-10 M/s Pransuckha PVT. LTD. Potato Vegetables, CT 2 • New M/s Pransuchka Cold
Cold Storage Fruits Storage, City Road,
Gulab Bagh, Purnea
District Financing Branch Date of Date of Capacity TO sanction Bank Loan Promoters Eligible Refinance
Banl< Receipt of Sanctioned (MT) contribution subsidy subsidy Sanctioned
Proposal of Refinance
9 10 11 12 13 14 15 16 17 18 19
Chapra, SB! SBI, ZO, 18.01.200 27.06.2000 4700 131.178 70 63.951 32.79 63
Bihar Muzaffarpur
Vaishali, SBI SBI, 23.05.2000 27.07.2000 4000 115.478 50 65.478 28.87 45

Bihar Hazipur
Begusari, SB! SBI, ADB, 18.07.2000 28.08.2000 6000 170.326 94.6 69.992 42.58 85.46
CO
Bihar Begusarai
Begusarai, SBI ADB, 14.07.2000 28.08.2000 6000 187.17 76.71 110.46 46.79 69.04
Bihar Begusarai
Muzaffarpur, SBI SBI, ADB, 17.07.2000 27.02.2001 5000 148.41 74 74.41 — 66.6
Bihar Muzaffarpur
Samastipur, SBI SBI, AMY, 17.07.2000 • 27.02.2001 4000 133.9 45 88.9 40.5
Bihar Mathuranapur,
Samastipur
Vaishali, SBI 28.08.2000 — 4000 125.28 45 80.28 — 0

Bihar
Purnea, SBI SBI, 21.12.2000 31.01.2001 60000 180 90 90 81

Bihar Gulabbagh,
Purnea
Refinance Status of refinance/capital subsidy sanction, disbursement
disbursed
20 21
50.076 Refinance sanctioned and disbursed. No specific proposal for subsidy received from the bank.
41.163 Refinance sanctioned and disbursed. No specific proposal for subsidy received from the bank
85.464 Refinance disbursed. Proposal for capital subsidy received. The financing bank has withdrawn
CO the proposal on 15.01.2002 69.039 Refinance disbursed. Proposal for capital subsidy received.
CX5
The financing bank has withdrawn the proposal on 15.01.2002
60.444 Refinance sanctioned and disbursed. Proposal for capital subsidy received on 14.02.2001. In
the meeting of RO Committee on cold storage on 7.07.2001, the unit was not considered
eligible for capital subsidy, based on its date of commissioning (30.03.2000) As advised by the
financing bank.
40.5 Refinance disbursed. The unit is not eligible for subsidy as the bank has advised that the unit
was commissioned during April 2000.
Project withdrawn by the financing bank.
81 Refinance disbursed. The unit is not eligible for subsidy as the bank has advised that the unit
was commissioned on 25,03.2000
Ex-Post Evaluation Study Reports
Published by Head Ofice
SI. Tittle of Evaluation Report Year of
No. Publication
1. *Minor Irrigation Scheme-Construction of New Wells and 1977
Installation of Pumpsets Thereon in Shoiapur District, Maharashtra
2. * Minor tubewells in Karnal District, Haryana 1977
3. * Bhadra land Development Project-Scheme for Reclamation and . 1977
Development of Land, Karnataka
4. * Land Development under Nagarjuna Sagar Project, Miryalguda 1978
Taluka, Andhra Pradesh
6. * Dairy Development Schme in jaadhri Block of Ambala district, 1978
Haryana
7. * Dairy Development Scheme in Moga Area of Faridkot-District, 1978
Punjab
8. * Poultry Development Scheme in Mulkanoor, Karimnagar District, 1979
Andhra Pradesh
9. * Mechanised Fishing Boats in South Kanara District, Karnataka 1979
10. * Development of Acid Lime Gardens in Nellore District, 1981
Andhra Pradesh
11. * Groundwater irrigation in Kota District, Rajasthan 1982
12. * Minor Irrigation in Bhojpur District, Bihar 1982
13. Development of Grape Cultivation in Bijapur District, Karnataka 1982
14. River Lift Irrigation Schemes in Pune District, Maharashtra 1982
15. Dairy Development Schemes in Westen Uttar Pradesh 1982
16. * River Lift Irrigation Schemes in Kolhapur District, Maharashtra 1982
17. * Sheep Rearing in Nalgonda District, Andhra Pradesh 1982
18. Development gf Coffee Plantation in Lower Plain Area Madurai 1983
District, Tamil Nadu
19. * Public Tubewells and River Lifts in Orrisa 1984
20. * Power Tillers in Hooghly District, West Bengal 1985
21.- Commercial Poultry in Krishna District, Andhra Pradesh 1986
22. Dugwell Irrigation in Palghat District, Kerala 1986
23. Tractors in North Bihar 1986
24. Dairy Development Schemesin Darjeeling District, West Bengal 1987
25. Tractor SchemesinVaranasi, Ghazipur and Jaunpur Districts of 1987
Eastern Uttar Pradesh
26. Tractors and Power Tillers in Tamil Nadu 1987
27. Minor Irrigation in Muzaffarnagar District, Uttar Pradesh 1987
28. Dairy Development in Quilon District, Kerala 1987
29. Dugwell Irrigation in Dhenkanal District, Orrisa 1988
30. Bamboo and Shallow Tubewells in Purnia District, Bihar 1988
31. Dugwell Irrigation in Nasik District, Maharashtra 1988
32. Calf Rearing in North Arcot, Salem and Coimbatore District, 1988
Tamil Nadu
{99}
33; Minor Irrigation in Allahabad District, Uttar Pradesh 1988
34. Coconut Development in Quilon District, Kerala 1988
35. Minor Irrigation in Purulia District, West Bengal 1988
36. Sprinkler Irrigation in Semi-arid Areas of Rajasthan 1989
37. Dugwell Irrigation for Small Farmers in Amravati District,
Maharshtra 1989
38. Marine Fisheries in Coastal Gujrat and Maharashtra 1989
39. Financing of Shallow Tubewells under Massive National
Programme in Haryana 1990
40. financing of Apple Orchards in Hill Districts, Uttar Pradesh 1991
4 1 . Work Animals and Animal Driven Carts in Meerut District, 1991
Uttar Pradesh
42. Inland Fishery in Krishna District, Andhra Pradesh 1991
43. Bio-Gas Plants in Nainital and Rampur Districts, Uttar Pradesh 1991
44.- Impact of Non-farm Sector Investmnts 1994
45. Lift Irrigation Schemes in Maharashtra 1995
46. Mandwan Watershed Project under Indo-German Watershed 1999
Development Programme (IGWDP) - Mahrashtra State
47. Self Help Group in Tamil, Nadu 2000
48. Micro Finance for Rural People - An Impact Evaluation Study 2000
Reports are out of stock.

Report no. 5 not published.
{100}
Reports Published by the Regional offices of
National Bank for Agriculture and Rural Development
SI. Regional Title of Evaluation Report Series Year
No. Office No. of
Public-
ation
1 Alimedabad 1 1988
2 Dairy Development Sclnemes in IMehsana 2 1991
District
3 Lift Irrigation Sclieme of Ul<ai Left Bank i^lain 3 1991
Canal - Gujart
4 Financing of Tractors in Mehsana and Rajkot 4 1992
5 Investnnents Financed under IRDP in Valsad 5 1994
District - Gujarat
6 Bangalore 1 1989
And Kolar Districts - Karnataka
7 Borewell Financing In Chitradurga And Kolar 2 1990
District - Karnataka
8 Development Of Coffee Gardens In Karnataka • 3 1992
State
9 Sericulture Development In Karnataka - Farm 4 1993
Investments
10 Lift Irrigation Scheme in Belgaum Disthct- 5 2000
Karnataka
11 Poultry (Broiler) Development In Bangalore 6 2001
(Rural) and Bangalore (Urban) Districts-
Karnataka
12 Drip Irrigation Programme in Cliitradurga 7 2002
District of Karnataka
13 Bhopal Dugwell and Shallow Tubewell Irrigation in 1 1988
Narsinghpur District - MP
14 Tractor Financing in Raisen and Vidisha 2 1989
District - MP
15 Commercial Layer Poultry Development in 3 1992
Indore District- MP
16 IRDP in Sagar District - MP 4 1994
17 Bhubaneswar Betelvine Gardens in Purl District of Orissa 1 1989
18 Tractor in Sambalpur District of Orissa 2 1989
19 Dairy Development in Cuttak and Ganjam 3 1992
Districts of Orissa
20 Brakish Water Prawan Cultura in Puri District 4 1997
of Orissa
21 Minor Irrigation in Samabalpur District of Orissa 5 1997
{101}
22 bhallow lubewells in Undivided Cuttack and 6 2U0U
Undivided Purl Districts of Orissa
23 District Rural Industries Project (DRIP) and 7 2002
Primary Lending Institutes (PLI) Training
Programme in Undivided Ganjam District of
Orissa
24 Chandigarh Poultry Farming in Punjab 1 1987
25 Dairy Development Schemes in Karnal and 2 1987
Rohtak Districts - Haryana
26 Tractors in Haryana 3 1994
27 Grape Gardens in Hissar District of Haryana 4 1998
28 Inland Fisheries in Patiaia and Bathinda District 5 2000
of Punjab
29 Viability of Tractors in Punjab 6 2001
30 Rural Non Farm Sector in Ludhiana and 7 2001
Sangrur Districts of Punjab
31 Water Conveyance System in Rewari and 8 2001
IMahendergarh Districts of Haryana
32 Cold Storage in Jalandhar, Ludhiana and 9 • 2001
Patiaia Districts of Punjab
33 Dairy Financing in Kurukshetra and Kaithal 10 2002
District of Haryana
34 Chennai Poultry Development in Salem District - Tamil 1 1998
Nadu
35 Dugwell Irrigation in Puddukkottai and North 2 1989
Arcot Districts of Tamil Nadu
36 Tea Gardens in Nilgiri District of Tamil Nadu 3 1990
37 Minor Irrigation Investments under Marine 4 1991
Assistance Programme in South Arcot and
Tiruchiraplli Districts of Tamil Nadu
38 Jasmine Investments in Salem and Madurai 5 1992
Districts of Tamil Nadu
39 Mini Dairy in Coimbatore and Periyar Districts 6 • 1994
of Tamil Nadu
40 Marine Fisheries in Tamil Nadu 7 1998
41 Sericulture in Tamil Nadu 8 1999
42 IRDP in Tirunelveli District of Tamil Nadu 9 2000
43 Modern Rice Mills in Tamil Nadu 10 2001
44 Coconut Development in Coimbatore District 11 2002
of Tamil Nadu
45 Guwahati Private Shallow Tubeweils and Lift Points In 1 1989
Assam
46 Inland Fishery in WestTripura District - 2 1992
Tripura
(102}
47 integrated Rural Development Programme in 3 2000
Nagaon District of Assam
48 Farm Mechanisation (Power Tiller) In Sibsagar 4 2000
District - Assam
49 Hyderabad Public Tubewells in Khammam District, 1 1988
Andhra Pradesh
50 Development of Grape Gardens in Ranga 2 . 1989
Reddy District, Andhra Pradesh
51 Dugwell Irrigation in Chittoor District, 3 1989
Andhra Pradesh
52 Mango Orchards in Krishna and Khammam 4 1991
Districts, Andhra Pradesh
53 On Farm Development in Khammam and 5 1995
Krishna District, Andhra Pradesh
54 Inland Fishery in West Godavari District, 6 1996
Andha Pradesh
55 Dairy Development in Krishna District, 7 1999
Andha Pradesh
56 Poultry Layer Investment in Andhra Pradesh 8 2000
57 Food (Mango) Processing in Visakhapatnam 9 2001
&, Chittoor District of Andhra Pradesh
58 Sheep Rearing in Mahabubanagar and West 10 2002
Godavari Districts
59 Jaipur Minor Irrigation Structure in Kherwara P.S. in 1 1988
Udaipur District of Rajasthan
60 Tractors in Alwar District - Rajasthan 2 1991
61 Market Yard in Kekri - Ajmer District of 3 1991
Rajasthan
62 Borewell in Jodhpur District - Rajasthan 4 1993
63 IRDP in Alwar District of Rajasthan 5 1995
64 Poultry Development in Ajmer District of 6 1995
Rajasthan
65 Sprinkler Irrigation scheme in Barmer 7 1997
District of Rajasthan
66 Dairy Development Schemes in Bharatpur 8 1999
67 Water Management Schemes in Bikaner 9 2001
68 Minor Irrigation Schemes in Bikaner District 10 2001
of Rajasthan
69 Orange Cultivation Schemes in Jhalawar 11 2002
70 Jammu IRDP in Baramulla District of J & K 1 1992
71 Tractors in Jammu District of J & K 2 1995
{103}
72 Kolkata Inland Fisheries Schemes in Nadia District, 1 1992
West Bengal
73 Bateivine Gardens in Midnapur District, 2 1989
West Bengal
74 Bullock and Bullock Carts in Malda District, 3 1991
West Bengal
75 Poultry Farming Broiler in IMidanapur District, 4 1999
West Bengal
76 lînor Irrigation Schemes in Birbhum District, 5 2000
West Bengal
77 Lucknow Minor Irrigation Scheme in Jhansi District 1 1988
Uttar Pradesh
78 Tractors in Western Uttar Pradesh 2 1992
79 Inland Fishery in Azamgarh and Deoria 3 1994
Districts- Uttar Pradesh
80 NFS in Moradabad District - Uttar Pradesh 4 1994
81 Saghan Mini Dairy Allahabad District 5 1997
Uttar Pradesh
82 Mushroom in Dehradun District - 6 1997
Uttar Pradesh
83 Grapes in Muzaffarnagar District 7 1998
Uttar Pradesh
84 Patna Shallow Tube Wells In Darbhanga, 1 1998
Madhubani & Samastipur Districts in Bihar
85 Deep Tube Wells in Bihar 2 1989
86 Dairy Development In Begusarai & 3 1989
Singhbhum Districts In Bihar
87 Minor Irrigation Schemes in Samastipur 4 1996
District In Bihar
88 IRDP In Ranchi District In Bihar 5 1997
89 Pune Lift Irrigation in Ahmednagar District - 1 1988
Maharashtra
90 Well Irrigation in Aurangabad District - 2 1.991
Maharashtra
91 Poultry Development in Pune District - 3 1,991
Maharashtra
92 Grape Garden in Nasik District - Maharashtra 4 • 1,993
93 Land Development in Command Area of 5 . 1,995
Kukkadi Project - Maharashtra
94 IRDP in Yavatmal District - Maharashtra 6 1,998
95 Farm Mechanisation in Ahmednagar District - 7 1,999
Maharashtra
96 Post Harvest Centres (Pre-cooling, etc.) for 8 2,001
Export of Grapes in Maharashtra
{104}
97 Shimla Dairy Development in Mandi District of 1 1,997
Himachal Pradesh
98 Trivandrum Betelvine Gardns in Trivandrum District of 1 1,988
Kara la State
99 Broiler Poultry Development in Ernakulam 2 1,990
District of Kerala
100 Development of Rubber Plantation in Kottayam 3 1,990
District of Kerala
101 Fisheries Development in Kollam District of 4 1,992
Kerala State
102 Farm Mechanisation on Palghat and Ernakulam 5 1,995
Districts of Kerala
103 Rural Non-Farm Sector in Mailappuram and 6(5) 1,998
104 Sprinkler Irrigation in Arecanut Garden in 7 2,002
Kasargod District of Kerala
105 Dairy Development in Kollam District of Kerala 8 2,002
{105}
Investment-wise Ex-Post Evaluation Study Reports Published By
Regional Offices of
National Bank For Agriculture And Rural Development
SI. Tittle of Evaluation Report Year of
No. Publication
MINOR IRRIGATION
1 Dugwell and Shallow Tubewel Irrigation in Narsinghpur District - 1988
Madhya Pradesh
2 Lift Irrigation in Ahmednagar District - Maharashtra 1988
3 Minor Irrigation Scheme in Jhansi District - Uttar Pradesh 1988
4 Minor Irrigation Structure in Kheerwara P.S. in Udaipur District of 1988
Rajasthan
5 Public Tube wells in Khammam District, Andhra Pradesh 1988
6 Shallow Tube Wells In Darbhanga, Madhubani & Samastipur in 1988
Bihar
7 Deep Tube Wells in Bihar 1989
8 Dugwell Irrigation in Chittoor District, Andhra Pradesh 1989
9 Dugwell Irrigation Puddukl<ottai and North Arcot Disteicts of 1989
Tamil Nadu
10 Private Shallow Tubewells And Lift Points In Assam 1989
11 Borewell Financing In Chitradurga And Kolar District - Karnatal<a 1990
12 Lift Irrigation Scheme of Ukai Left Bank Main Canal - Gujarat 1991
13 Minor Irrigation Investments under Marine Assistance Programme 1991
in South Arcot and Tiruchirapplli Districts of Tamil Nadu
14 Well Irrigation in Aurangabad District - Maharashtra 1991
15 Borewell in Jodhpur District - Rajasthan 1993
16 Minor Irrigation Schemes In Samastipur District In Bihar 1996
17 Minor Irrigation in Sambalpur District of Orissa 1997
18 Sprinkler Irrigation Scheme In Barmeir District of Rajasthan 1997
19 Lift Irrigation Scheme In Belgaum District -* Karnataka 2000
20 Minor Irrigation Schemes in Birbhum District, West Bengal 2000
21 Shallow Tube VVells in Undivided Cuttak and Undivided Puri 2000
Districts of Orissa
22 Minor Irrigation Schemes in Bikaner District of Rajasthan 2001
23 Water Conveyance System in Rewari and Mahendergarh Districts of 2001
Haryana , .
24 Water Management Scheme in Jaipur District of Rajasthan 2001
25 Drip Irrigation Programme in Chtradurga district of Karhataka 2002
26 Sprinkler Irrigation in Arecanut Garden in Kasargod District of 2002
Kerala
{106}
PLANTATION A N D HORTICULURE
1 Betelvine Gardens in Trivandrum district of Kerala State .1988
2 Betelvine Gardens in Midnapur District, West Bengal 1989
3 Betelvine Gardens in Puri District of Orissa 1989
4 Development of Grape Gardens in Bangalore And Kolar Districts - 1989
Karnataka
5 Development of Grape Gardens in Ranga Reddy District, 1989
Andhra Pradesh
6 Development of Rubber Planatation in Kottayam District of Kerala 1990
7 Tea Gardens in Nilgiri District of Tamil Nadu 1990
8 Mango Orchards in Krishna and Khammam Districts, Andhra Pradesh 1991
9 Development of Coffee Gardens in Karnataka State 1992
10 Jasmine Investments in Salem and Madurai Districts of Tamil Nadu 1992
11 Grape Garden in Nasik District of Maharashtra 1993
12 Mushroom in Dehradun District of Uttar Pradesh 1997
13 Grape Gardens in Hissar District of Haryana 1998
14 • Grapes in Muzaffarnagar District of Uttar Pradesh 1998
15 Coconut Development in Coimbatore District of Tamil Nadu • 2002
16 Orange Cultivation Schemes in Jhalawar District of Rajasthan 2002
A N I M A L HUSBANDRY
(A) Dairy D e v e l o p m e n t
1 Dairy Development Schemes in Karnal and Rohtak Districts of Haryana 1987
2 . Dairy Development In Begusarai & Singhbhum Districts In Bihar 1989
3 Dairy Development Schemes in Mehsana District • 1989
4 Dairy Development in Cuttak and Ganjam District of Orissa 1992
5 Mini Dairy in Coimbatore and Periyar Districts of Tamil Nadu 1994
6 Dairy Development in Mandi District of Himachal Pradesh 1997
7 Sagham Mini Dairy Allahabad District, Andhra Pradesh 1997
8 Dairy Development in Krishna District, Andhra Pradesh 1999
9 Dairy Development Schemes in Bharatpur District of Rajasthan 1999
10 Dairy Development in Kollam District of Kerala 2002
11 Dairy Financing in Kurukshetra and Kaithal District of Haryana 2002
(107)
(B) Poultry Development
1 Poultry Farning in Punjab 1987
2 Poultry Development Schemes in Gujarat 1988
3 Poultry Development in Salem District of Tamil Nadu •1988
4 Broiler Poultry Development in Ernakulam District of Kerala . 1990
5 Poultry Development in Pune District of Maharashtra 1991
6 Commercial Layer Poultry Development in Indore District of 1992
Madhya Pradesh
7 Poultry Development in Ajmer District of Rajasthan 1995
8 Poultry Farming (Broiler in Midnapur District of West Bengal) 1999
9 Poultry Layer Investment in Andhra Pradesh 2000
10 Poultry (Broiler) Development In Bangalore (Rural) And Bangalore 2001
(Urban) Districts of Karnataka
(C) Fishery
1 Inland Fisheries Schemes in Nadia District of West Bengal 1987
2 Fisheries Development in Kollam District of Kerala State 1992
3 Inland Fishery In West Tripura District of Tripura 1992
4 Inland Fishery in Azamgarh and Deoria Districts of Uttar Pradesh 1994
5 Inland Fishery in West Godavari District of Andhra Pradesh 1996
6 Brackish Water'Prawn Culture in Puri District of Orissa 1997
7 Marine Fisheries in Tamil Nadu 1998
8 Inland Fisheries in Patiala and Bathinda Districtsof Punjab 2000
FARM MECHANISATION
1 Tractor Financing in Raisen and Vidisha District of Madhya Pradesh .1989
2 • Tractor in Sambalpur District of Orissa 1989
3 Tractors in Alwar District of Rajasthan 1991
4 Financing to Tractors in Mehsana and Rajkot Districts - Gujarat 1992
5 Tractors in Western Uttar Pradesh 1992
6 Tractors in Haryana 1994
7 Farm Mechanisation in Palghat and Ernakulam Districts of Kerala 1995
8 Tractors in Jammu District of J & K 1995
9 Farm Mechnisation in Ahmednagar District of Maharashtra 1999
10 Farm Mechanisation (Power Tiller) In Sibsagar District - Assam 2000
11 Viability of Tractors in Punjab 2001
{108}
LAND DEVELOPMENT
1 Land Development in Command Area of Kukkadi Project- Maharashtra 1995
2 On Farm Development in Khammam and Krishna Districts of 1995
Andhra Pradesh
INTEGRATED RURAL DEVELOPMENT PROGRAMME ( I R D P )

1 IRDP in Baramulla District of J & K 1,992
2 Investments financed under IRDP in Valsad District - Gujarat 1,994
3 IRDP in Sagar District - Madhya Pradesh 1,994
4 IRDP in Alwar District of Rajasthan 1,995
5 IRDP in Ranchi District in Bihar 1,997
6 IRDP in Yavatmal District - Maharashtra 1,998
7 Integrated Rural Development Programme Nagaon District of Assam 2,000
8 IRDP in Tirunelveli District of Tamil Nadu 2,000
NON-FARN SECTOR
1 NFS in Moradabad District of Uttar Pradesh . 1,994
2 Rural Non-Farm Sector in Mallappuram and Kozhikode Districts of 1,998
Kerala
3 Rural Non Farm Sector in Ludhiana and Sangrur Districts of Punjab 2,001
4 District Rural Industries Project (DRIP) and Primary Lending Institutes 2,002
(PLI) Training Programme in Und-ivided Ganjam District of Orissa
OTHER INVESTMENTS
1 Bullock and Bullock Carts in Malda District, West Bengal 1,991
2 Market Yard in Kekri - Ajmer District of Rajasthan • 1,991
3 Sericulture Development in Karnataka 1,993
4 Sericulture in Tamil Nadu 1,999
5 Cold Storage in Jalandhar, Ludhiana and Patiala Districts of Punjab 2,001
6 Food (Mango) Processing in Visakhapatnam & Chittoor District of 2,001
Andhra Pradesh
7 Modern Rice Mills in Tamil Nadu 2,001
8 Post Harvest Centres (Pre-cooling etc.) for Export of Grapes in 2,001
Maharashtra
{109.}
\
Exhibit No. 4
Exiiibit No. 5
Exhibit No. 7
Exhibit No. 8
^
Exhibit No. 10
Exhibit No. 11

0109173321es 15 PDF

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

0109173321es 15 PDF

Încărcat de

Drepturi de autor:

Formate disponibile

EX-POST EVALUATION

Perishibility is the characteristic of agriculture and horticulture products.

National Bank for Agriculture and

Regional Office, PATNA

^''TTcr ^ c ^ T T ^ 3fR ^3^T^lWTT3{t, " ^ ^ ^^cTT t l W^^ c f ^ ^^jfr^ ^ ^^R

^jWmrTTatf ^ ^ M N ^ cR^atf ^ 3Tm^ c^ 'W^ 3 T f ^ ^f^T^TcT ^ g ^ f ^ ^ ^ t cTSTlf^,

3fl7 ^ P ^ ^ vic^^KH ^ ^ ^ ^ ^ ^-STFT t I WfcT 3 T f ^ v3c<^KH c^ mc![^ ZfT^

^ ^^ ^ f ^ f ^ t , f^RT^ TTfcT ^ ^ ^3"^ ^Ro^^ ^ i [ w ^ , - ^ ^ sjii^Rjchdiatr sfR

^, 1998 ^ c^ H ^ j d i j ^RT ^ r f ^ ^3^^ i-^^^ i-\\A\^. ^RT ^9TT Sl^^lRnd ^ f ^ e ^

%?PTr.^ 3T%eT ^ K ' d l i j ^FrR t R W^ 400 3Tf^f^c|TT c f T t e ^ ^ ^ ^ 1 ^ ^ ^ ? ^ T ^ ^ PIHI^I

f^^^ ^ ^ R ^ f ^ R T ^ ^T^J^RT $RcTT 20 efRI {^^dp ^^ f I

t I ^raf^, ^TRf^ c f ) ^ M£T ^JR^HT ^ I ^ R W cf^ 3H|c|^i|cbdl W\ ^[HH^rl f ^ f%?R ^

^ ^[^m^ ^ H^rfsrf, sIMNJ^ V3C<^KT ^ ^u^KU| ^ feTT^ ^fTTe^ ^ T ^ t ^ cf^ ^ ^ # T

^fR^ ^ ^I^TRT f^^^ ^ 7 ^ t I ^TSrfcr, M ^ ^I^f^ ^ ^3M<4Vl ^ f ^ c i d ^ N ^f^tc^

^ ^ € r ^ ^ 3TT£J,Plct51ct)^u| Y T ^ ^ Tj3fr f ^ f ^ i-\[k]^ #3PfT F T ^ t , ^ ^ ^ ^ ^ n^TFI ^ 3T^

^•^l^ cfTF iêîcb^ c F ^ , ^ 2 T f r f%FR ^ RixiMlRid ^cbjîil' cf?r airfsfcf? ^^^q ^ ^ I T ^

^ q r , g^JFTCfR^^, ^FFRcfr^, t^TTcfr, ^FTR^ 3 f k ^^1^1! ^ STtzpRT % q T ^RTT sff^ ^ R ^

f ^ A ^TM^ ^ 5^f^ illulH! ^ SPxFtcT f ^ ^ftf^ i ^ # e ^ ^ f ^ t ^ ^ ^ ^ ^ ^

^ l i f ^ d f^^^ ^fRTT I ^ ^'S^^^ ^ ^ ^icbl^icHct) fcT^t^cTT ^FTFT^ 3?!^ ^ - f%FR ^

^eiJIcbH ^!p^Fn % I ^F^t^^ ^ - ^ 1 ^ ^ i-\i^^\ ^ 3]-H]c\ ^ S H c ^ ^ ^ M I R ZZT^T ^ o 1 ^ ^ 7 ^

3 ^ vdeMKcb f^p^^ ^ ^rft^T^FKR 3TT^ ^ o 1.17 ^ I ^JRf% ^ f f e i-<i\\^ ^ 60

yRl^ld ^=^R) ^ ^ ^ 3 ^ cf^ ^Icfr ^ ^ o 1.00 ^ c 2 ^ c^ ^57^^ 3TPT sT? ^f^ ^ o 1.

82 FT ^ I ^^r^ ^ ^ ^ T-STTCPTT ^^ 3 t e T ^ o 145.60 e H ^ ^ e^^TcT . ^ (4100

f ^ ^ t ^ ^ ^ 31Tc^ ^ sfmcT ^ u ^ K U | a^TTcTT ^ f^i^) nfef ^ W^ ^ ^ f M 3^? ^ R

3^^T^ ^ 6|T^ 3fRTcT "^J^ 3TFT ^ o 6.89 e ^ ^ ? ^ 11 ^ ^R^, ^f^te^ ^ ! ^ f ^ ^

^ R^cJKH t f ^ 3T?:^RT^ ^ f ^ r a ^ ^ f^r^N T [ ^ ^ ^F^tc^ ^ J ^ T ^ 4\^-\\ ^

rîiîî^H ^ 3 f k 3 T I ^ ^^117 eTT^ ^ ^H^Ndl lA^^W I ^ ^ 3^fclR<td ^f^T#^^RT^

^ f 7 ^ - q i ^ ?T2^ ^ ^ vjIMchl^ f ^ ^fT^ I

Foreword (iii - ix)

Credit List (xi)

^ ^ ^?rcT ^ ^ Ri^ltidii^' 3fk ^m-m^ '9-I8

The assistance and cooperation received in the conduct of the Evaluation

^ e i l l c h H 3TSCRPT ^ ^ ^ ^ ^ ^ ^Pr^^ ^til^vjl, g i J R ^ T R ^ , ' ^ ^ t?TTeft "^ftrT

HK^^HI cffte^ ^ - ^ W , ^HH^^^^ 3tk ^ ^ ^ ^f^^ cfflc^ ^ ^ ^ ^ , 'gf^t^, ^l^c^i)

T^^ f ^ , aHt^ cbiiild-M, -g^^^TRj^ T^ gf^kr ^ c r f ^ arf^RfTr^t^m, .i^ ^ ^

y ^ ^ ^FRclT t I ^ ^ 3^frlRcW ^ c n e ^ MK<bd, 3T€Z[aT, T T C T F ^ ^ " ^ f r ^ ^ITFfr^ f ^ •^

^ 3TTHR n ^ ? ^ ^fRcTT t f^FFi^ a ^ f ^ 8 ^ ^ ^ t ^ R aTstrjTjf ^ T ^ T J ^ f ^ 3N^

^T^Tj f^TTTI c^^Sr^ 3PT^ ^ B F c f ^ f W c^ yfcT ^ STPTP? cZf^fxT cfr^m t f^T^^

^ • ^ ^ ^ c F f F M t ^Jfr^ ^ WFT^ t MR^IUIHI ^ ms^lf^ (cbmTed^) 3 T t ^ ^

Specific Guidance and Review

General Guidance and Supervision

Field Visit, Tabulation, Analysis of Data; Drafting, Composition

Note: a) Name of places used in the report is identical to those used by

1 Sample of the Study Name of the Cold Name of the

Vaishali C/S Vaishali

Massina C/S Samastipur

Pransukha C/S Purnea

3 Implementing Banks Five branches of'the State Bank of India

4 Period of Implementation 1998 to 1999

5 Reference Year Calendar Year 2001

6 Average capacity 4870 MT

7 Average investment cost: Rs.145.60 Lakh (for capacity ranging

9 Average rent per quintal

b) Others Rs." 125

10 Economics of average sample a. Average Annual Rs. 46.70 Lakh

b. Average Annual Rs. 16.10 Lakh

c. Average Net Rs. 34.41 Lakh

11 Average Net Profit after Rs. 6.89 Lakh ( r a n g i n g f r o m

12 Financial Rate of 21.82 % (Ranging f r o m

13 Break Even V o l u m e of sales Ranged f r o m 39 % t o 65 % .

Out of 38 districts, 26 districts were having 204 registered cold storages

In Bihar, storage of potato is synonymous with cold storage. The total

11 In sensitivity analysis, it was discovered that the sample cold storages