It is assumed that there will be 4 operating cycles
in a year.
The financial analysis has been shown in Annexure
III. Results of the analysis are as under:-
NPW at 15% DE - Rs.1770
BCR at 15% DF -
(iii) IRR is
more than 50%
At present the Indian exports in IQF products
comprising mainly shrimps are exported to EEC, USA etc.
With proper product diversification it would be possible
to explore other world markets.
Interest rate for ultimate
Banks are free to decide the rate of interest within
the overall RBI guidelines. However, for working out the
financial viability and bankability of the model project
we have assumed the rate of interest as 12% per
Interest rate for refinance from
As per the policy circulars of NABARD issued from
time to time.
As can be seen from Annexure IV the borrower will be
able to repay the bank loan in 6 years with a moratorium
of one year on principal, interest on the loan will be
collected from first year itself.
Banks sanctioning term loan for setting up the unit
should also make arrangements for availability of
working capital loan to enable the borrower to run the
Banks may take a decision as per RBI guidelines.
Technical suggestions for establishment and
operation of an IQF unit
Principal of IQF production and types of
Individual quick freezing generally takes place in
two stages. In the first stage the product is
partly frozen to a pre-determined point and fluidized to
the semi-weightless stage of the product by partially
suspending it in the air in the second stage. In
the process the velocity and pressure of air is adjusted
to ensure ultra rapid freezing in IQF form. Based
on the mechanical structures used for the conveyance of
the raw materials, IQF machinery can be of two
i) Conveyor type where the air flow is from top to
bottom or vice versa
ii) Spiral type
The refrigerant used can be Ammonia, Liquid Nitrogen,
Freon (Refrigerant-22) or brine based on which
modification would be made in the machinery.
Criteria for selection of plant
1. Nearness to landing centre/shrimp farm is of
paramount importance for getting fresh raw materials in
2. Uninterrupted power
3. Easy accessibility for free flow of raw
material and finished product.
4. Adequate supply of
5. Availability of skilled and unskilled
Stage - 1 Receipt of Raw
The raw materials are subjected to preliminary
inspection then iced and stored till processing.
Stage - 2 Cleaning finished
The raw materails are de-iced, cleaned and made in
the form in which the ultimate product ought to be e.g.
fillets, headon,headless etc., washed and weighted.
Stage - 3 Processing
The raw material is loaded on to the conveyor and the
process is continued till the core temperature is below
- 180C. The product is glazed and packed in vaccum
Stage - 4 Storing
The product is stored at -200C till shipment.
Note : Weight loss during thawing
should be adequately compensated by adding additional
weight at the time of freezing. The quantum of
drip loss is a factor of size and variety of the raw
materials to be processed.
Some conditions for ensuring better quality
1. The temperature inside the freezing tunnel should
be maintained constantly below - 400C. The refrigeration
machinery should be capable of maintaining the air
temperature below - 400C even when the raw material is
2. Defrosting should be done preferably after 5-6
hours of continuous operation of the plant. After
defrosting the raw material should be fed only when the
air temperature is below - 400C to ensure a core
temperature below - 200C.
3. All parts coming in contact with the product
should be corrosion-resistant preferably of stainless
4. The freezing time depends on the thickness of the
raw material. The thicker the product, longer will
be the freezing time. In order to freeze various
types of products the freezer should be equipped with a
variable conveyer speed control ranging from 5-50
5. The IQF unit is to be installed in an air
conditioned room so that the temperature of the product
fed to the conveyor will not rise.
6. The IQF outlet should be preferably in the
anteroom of the cold storage, so that grading and
packing can be done in the anteroom and the product can
be transferred to cold storage without much delay.
Estimated physical and financial outlay
involved for setting up of an
IQF unit of 2500 MT capacity ( Illustrative
A. Capital cost