Bhubaneswar, April 28: The government today announced to provide financial incentive of Rs 205 crore to set up cold storages across the state to help overcome potato scarcity that often hits Odisha.

A target has been set to build 112 cold storages with 5,000 metric tonne capacity in the next three years.

Capital investment subsidy will be given to entrepreneurs who want to set up cold storages. The provision was made under the State Potato Mission, a scheme that is to be implemented from the current year for a period of eight years till 2023-24. The State Potato Mission was launched in December to meet the growing tuber requirements of the state.

The state cabinet also decided to amend the State Agriculture Policy 2013 to give incentives for setting up cold storages under the National Horticulture Mission.

Besides, funds will be provided in the state budget for nine years up to 2023-24 for giving electricity consumption relief to cold storages. The cold storages will be given 50 per cent relief for the first two years, 30 per cent each for the next two years and 20 per cent for the last two years. The existing cold storages and those set up by March 2018 will be entitled to get the excise relief.

"The incentives to the entrepreneurs will indirectly help the potato cultivators to store their produce in the cold storages for the lean period, which will ultimately prevent distress sale and give them remunerative price," said an official.

The state produces around 2 lakh metric tonnes of potatoes against the demand of nearly 11 lakh metric tonnes. This makes the state dependent on other states including neighbouring Bengal.