§1What this business is
A reefer vehicle has an insulated body and, in the refrigerated type, a cooling unit that holds the load at a set temperature. The owner carries produce for farmers, traders, cold stores and processors and charges per trip or per kilometre. Three official cost norms exist: PMMSY lists refrigerated vehicles at ₹25 lakh and insulated vehicles at ₹20 lakh for fish; MIDH allows ₹30 lakh for a 15 MT refrigerated transport vehicle for horticulture, pro rata for 9 to 15 MT; and the 2010 DEDS norm for dairy product transport and cold chain was ₹24 lakh.
Capacity: MIDH norm: 15 MT, with 9–15 MT allowed pro rata; 3 cubic metres of chamber volume is counted as 1 MT.
§2Is it right for you?
Who it is for
A transporter or produce trader who already has regular loads of perishables.
Who it is not for
A first-time owner with no tie-up for loads in both directions.
Advantages
- Cold-chain transport is short in most districts
- Serves several trades — fish, fruit, dairy, pharma
- Subsidy of 35–60% is listed under the schemes
Drawbacks
- A ₹20–30 lakh asset that loses value every year
- Empty return trips eat the margin
- Cooling-unit breakdown can ruin a full load
Skills you need
- Fleet and route planning
- Temperature control for different produce
- Dealing with traders and cold stores
Why difficulty 3/5: High-value vehicle; profit depends on steady two-way loads.
§3Market
Who buys
- Fish traders and exporters
- Fruit and vegetable aggregators, pack houses and cold stores
- Dairies and ice-cream makers
How it sells
- Trip contracts with traders and processors
- Transport brokers and freight apps
Good to know
- The norms print only vehicle costs; no freight rates are given.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Insulated vehicle (fish) | 1 | ₹20,00,000 |
| Refrigerated vehicle (fish) | 1 | ₹25,00,000 |
| Refrigerated transport vehicle, 15 MT (horticulture) | 1 | ₹30,00,000 |
| Dairy product transportation facilities and cold chain (2010 norm) | — | ₹24,00,000 |
| 10-ton insulated truck for fish and shrimp transport (Andhra Pradesh, 2025-26) | 1 | ₹21,44,000 |
From: Department of Fisheries, Government of West Bengal — PMMSY list of beneficiary-oriented schemes (unit costs) · National Horticulture Board — MIDH cost norms and pattern of assistance · NABARD circular 186/TSD-03/2010 — Dairy Entrepreneurship Development Scheme (DEDS) guidelines (2010) · NABARD Andhra Pradesh Regional Office — A Comprehensive Guide of Unit Costs on Investment in Agriculture and Allied Sectors 2025-26 (2025)
§5Licences & registration
- Commercial vehicle registration and goods carriage permit
- Insurance, fitness and pollution certificates
- FSSAI registration or licence as a food transporter
- GST registration
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
- NHBCentralActive35% back-ended subsidy
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMMSY lists 40% assistance (60% for SC/ST/women) on fish transport vehicles; MIDH gives a credit-linked back-ended subsidy of 35% (50% in hilly and scheduled areas) on refrigerated transport for horticulture. CGTMSE can cover the bank loan. Check with the fisheries or horticulture office which window is open.
§7Money
How the investment is worked out: Min = PMMSY unit cost of an insulated vehicle, ₹20 lakh (item 5.4). Max = MIDH cost norm for a refrigerated transport vehicle, ₹30 lakh for 15 MT. PMMSY refrigerated vehicle: ₹25 lakh (item 5.3). Running costs and working capital are not included.
None of the three norms prints a current year (the DEDS circular is from 2010) — take a fresh quotation for the chassis, body and cooling unit.
§8Export potential
A local service; there is no goods export in this business.
§9Risks — where people fail
- Claims for spoiled cargo
- Diesel price rise
- Seasonal gaps in loads
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working refrigerated and insulated transport vehicle (reefer van) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Commercial vehicle registration and goods carriage permit, Insurance, fitness and pollution certificates), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Refrigerated and Insulated Transport Vehicle (Reefer Van)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- Department of Fisheries, Government of West Bengal — PMMSY list of beneficiary-oriented schemes (unit costs)
- National Horticulture Board — MIDH cost norms and pattern of assistance
- NABARD circular 186/TSD-03/2010 — Dairy Entrepreneurship Development Scheme (DEDS) guidelines (2010)
- NABARD Andhra Pradesh Regional Office — A Comprehensive Guide of Unit Costs on Investment in Agriculture and Allied Sectors 2025-26 (2025)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.