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The Warehouse Subsidy Scheme – How Much Subsidy Can You Get?

By December 23, 2025
It’s not enough to have storage space in a warehouse. Warehouses require significant investments in infrastructure, technology, and compliance to meet the growing demand of agriculture, logistics, manufacturing, and e-commerce sectors. The government provides support for the development of supply chains and organized storage through the warehouse subsidy scheme. Investors and business owners often ask about the maximum amount of subsidy that they can get under this programme. This blog provides a practical and simple explanation of the factors that determine the answer.

What is the Warehouse Subsidy Scheme (WSS)?

The Subsidy for Warehouses program is a government-backed incentive designed to promote the development of scientific infrastructure. It is designed to support the construction, expansion, and modernization of warehouses, including agricultural warehouses and cold storage facilities. The Warehouse Subsidy Program is designed to:
  • Reduce post-harvest losses
  • Supply chain efficiency can be improved
  • Encourage private investment in storage infrastructure
  • Support for farmers, traders and logistics businesses
The program is implemented by various state and central government policies that are often tied to agricultural and industrial development programs.

Who can apply for the Warehouse Subsidy Scheme?

The following are generally eligible for the Warehouse Subsidy scheme:
  • Individuals and entrepreneurs
  • MSMEs and private businesses
  • Farmer-Producer Organisations
  • Cooperatives, partnerships and corporations
  • Developers of logistics and infrastructure for agriculture
New warehouse projects as well as expansions of existing facilities that meet the guidelines may be eligible.

Factors that Decide the Maximum Subsidy

The Warehouse Subsidy Scheme does not have a fixed amount of subsidy. The maximum amount of subsidy that you can receive depends on a number of factors.

1. Types of warehouse

Different subsidy limits may apply to general warehouses and agricultural warehouses. Due to their higher costs, cold storage projects are usually eligible for higher subsidy limits.

2. The Project Location

Warehouses located in rural areas, districts that are backward or prioritised, and those with a high level of poverty receive higher subsidies than urban areas.

3. Project Cost

Subsidy amounts are calculated by a percentage of eligible project costs. Subsidies can be increased by increasing investment, but only to a certain limit.

4. Categorization of Beneficiaries

Under the Warehouse Subsidy Scheme, small farmers, FPOs, and MSMEs may be eligible for higher subsidies than large private companies.

Maximum Subsidy Under the Warehouse Subsidy Scheme

The Warehouse Subsidy scheme offers:
  • Subsidy ranges from 25 to 35%
  • Increased subsidy limits on cold storage and agri-warehousing projects
  • Maximum subventions are defined per project and not per applicant
Subsidies are often released only after the project is completed and verified. The promoter will have to arrange the funds initially through bank financing or their own capital.

How Subsidy is Disbursed

In general, the Warehouse Subsidy Scheme does not provide a subsidy up front. The process usually involves:
  • Approval and sanction of projects
  • Construction and installation completed
  • Inspections by the authorities
  • Submitting certificates of usage
  • Release of subsidy to a loan or a bank account
The subsidy will only be used to support genuine infrastructure development.

Understanding the maximum subsidy is important

The maximum amount of subsidy available under the Warehouse Subsidy Scheme can be used to:
  • Cost planning for projects: a guide to accurate project costs
  • Banks can better structure loans
  • Cash flow management: Improved.
  • Avoiding unrealistic expectations
Warehouse projects are often delayed or financially stressed because the expectations of subsidy were not in line with actual policy limitations.

Summary

The Subsidy Scheme provides a significant financial benefit, but its actual value depends on the project, location and compliance with guidelines. Understanding how much you can receive in subsidies will help reduce confusion and increase project feasibility. Subsidy Mantra is a simplified scheme that simplifies complex schemes, provides clear guidance and eligibility checks and gives you a complete picture of the incentives and subsidies for warehouses and other infrastructure.

FAQs – Frequently Asked Questions

Q1. The subsidy is not the same for every type of warehouse.  Subsidies vary depending on the type of warehouse. Whether it is a general, cold, or agricultural storage.

Q2. Can I apply for a subsidy for an existing warehouse?

Yes, expansion or modernization projects may be eligible under the Warehouse Subsidy Scheme.

Q3. Does the subsidy start before construction?

Subsidies are usually released only after the project is completed and verified.

Q4. Is the Land cost generally excluded from subsidy calculations? 

Subsidies are calculated on eligible infrastructure and construction costs.

Q5. Can multiple subsidies be availed for one warehouse project? 

This depends on policy guidelines. Some schemes allow convergence, while others do not. Follow us on Instagram for quick updates and insights, and subscribe to our YouTube channel for easy-to-understand guides on government schemes and business subsidies.
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