Who is eligible to apply for the Coir Udyami Yojana?

Any Indian citizen aged 18 or above can apply, including individuals, NGOs, self-help groups, and registered organisations involved in coir manufacturing.

What costs are covered under the Coir Udyami Yojana?

The government scheme covers capital expenses like machinery and building construction but excludes subsidies for working capital.

How is the subsidy distributed under the scheme?

The subsidy is 40% of the project cost, with the beneficiary contributing 5% and bank credit covering the remaining 55%.

Can a unit receiving subsidies from other schemes apply for this scheme?

No, units that have already availed subsidies for similar projects under other government schemes are not eligible.

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Coir Udyami Yojana: Empowering Entrepreneurship In India's Coir Industry - Details, Eligibility & Online Application

Q: What is the Coir Udyami Yojana?

The Coir Udyami Yojana is a credit-linked subsidy scheme that supports setting up coir-based production units with a project cost of up to ₹10 lakhs.

Jaagruk Bharat

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Updated: 28-01-2025 at 7:18 AM

Coir Udyami Yojana: Empowering Entrepreneurship In India's Coir Industry - Details, Eligibility & Online Application

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The Coir Udyami Yojana is a government-backed initiative that looks to develop entrepreneurship in the Coir sector in India. The government program aims to empower individuals, primarily from rural areas, by offering them financial support to establish coir-based manufacturing units. It encourages the development of eco-friendly and environmentally conscious products while strengthening the rural economy because of job creation.

Section	Details
Objective	Promotion of entrepreneurship in the coir industry through financial support for setting up coir production and processing units.
Project Focus	Only coir-related projects such as the production of coir fiber, yarn, and other products are eligible
Project Costs	Include capital expenditures like machinery and building costs. Working capital can be included in the project but is not eligible for subsidy
Goal	This project aims to enhance employment opportunities in rural areas, opportunities for women, and social-economic development of coir-producing people along with workers

What Is The Coir Udyami Yojana Scheme?

The Coir Udyami Yojana is a credit-linked government subsidy scheme for the establishment of coir units with a project cost of up to Rs. 10 lakhs plus one cycle of working capital, which shall not exceed 25% of the project cost. Working capital shall not be considered for subsidy.

The Ministry of Micro, Small, and Medium Enterprises will implement the Coir Udyami Yojana, a central sector scheme. The Coir Board, a statutory organisation under the Ministry of MSME, will implement the government scheme as a nodal agency at the national level.

Coir Udyami Yojana Features

Modernisation of the coir industry is important to attain better efficiency, sustainability, and positive impact on rural livelihoods. Several efficient productivity and quality upgrades can be achieved by the industry if advanced technology adoption improves and existing processes are upgraded. Given below are the key steps and goals in this direction.

Adopting modern technology in producing and processing coir and coir products will modernise the coir industry.
Upgrading the production and processing technology to enhance productivity, quality, and product diversification.
The goal is to boost efficiency and productivity, which will boost earnings for workers in the sector.
The aim is to improve the use of coconut husks and boost the output of coir fibre and coir products.
The goal is to create jobs in the rural regions of the States and Union Territories that produce coconuts.
The aim is to increase the employment prospects for women in the rural sector to promote gender empowerment.
The goal is to improve the socio-economic circumstances of the industry's producers and workers.

Coir Udyami Yojana Objective

The aim is to boost the coir industry and rural entrepreneurship by offering simple financing to establish manufacturing facilities for coir production, which could create jobs through sustainable business methods.

Benefits

A sound financial framework was developed to ensure that the development of projects will achieve its main purpose. The structure ensures balancing beneficiary contributions, bank credit, and government subsidies in raising projects' financial feasibility and access. The core elements of the cost-sharing model are:

Beneficiary’s contribution (of project cost): 5%
Bank credit: 55%
The rate of subsidy is 40% of the project cost.

Note:

The maximum admissible cost of the project is Rs. 10 lakhs plus working capital. Working capital shall not exceed 25% of the project cost. The computation of the subsidy will not include the working capital component.
After adjusting the deposited 5% beneficiary contribution, the bank will sanction 95% of the project cost and distribute the entire project cost, including the beneficiary contribution, in instalments for project setup.

Coir Udyami Yojana Eligibility Criteria

Coir Udyami Yojana is an enterprise especially created to help all individuals and organisations involved in coir and coir products' manufacturing. The Sarkari scheme aims at facilitating the growth of the coir industry as a whole. It is open to a large number of applicants with clearly defined criteria for eligibility and project costs. Below are the key details and steps involved:

Any individual at least 18 years old and holding Indian citizenship is eligible.
There will be no income ceiling for assistance in setting up projects under the Coir Udyami Yojana.
The government scheme only assists with projects that are related to the production of coir fibre, yarn products, etc. within the coir sector.
Individuals, companies, self-help groups, non-governmental organisations, institutions registered under the Societies Registration Act (1860), production cooperative societies, joint liability groups, and charitable trusts will all be eligible for assistance under the scheme.
The project cost will include capital expenditure, i.e., building and machinery.
The applicants will have the option to include one cycle of working capital in their project proposal. However, the working capital will not be considered for subsidy. The bank can approve the project and provide a loan for the working capital, disregarding any grants. Only after the unit's establishment can the bank sanction and release the loan for working capital. In no case shall the working capital included in the project exceed more than 25% of its cost.
If the beneficiary already owns the workshed, the project cost will only include the required machinery, as per the Sarkari scheme.
The beneficiary seeking the grant under the scheme should make available to the committee all relevant records relating to the construction of the shed and the purchase of machinery to enable it to determine the quantum of grant admissible.

Exclusions

To ensure transparency and fairness in the distribution of subsidies under the Coir Udyami Yojana, certain conditions and restrictions apply. These rules are designed to prevent misuse of the government scheme and ensure that the funding is allocated to genuine and eligible projects. Below are the key guidelines for eligibility and project cost management:

Units that have already received government subsidy under any other scheme of the Government of India or state government for the same purpose are not eligible to claim subsidy under this scheme.
Working capital will not be considered for subsidy.
The committee will either summarily reject applications that inflate the cost of machinery, buildings, and other project elements to receive a higher subsidy, or it will have the authority to consider such applications by lowering the project's cost.

Coir Udyami Yojana Application Process

Registration under the Coir Udyami Yojana will be done through a simple and structured process. Steps for filing the application:

Step 1: Applicants have to visit the official portal.
Step 2: Click on "Apply Now."
Step 3: If already registered, log in with the username and password.
Step 4: If applicants did not register themselves, click on "New Login Registration.".
Step 5: After logging in with the required details.
Step 6: Provide the required documents.
Step 7: Submit.

Documents Required

To apply for the Coir Udyami Yojana, applicants need to follow a clear and simple registration and application process. The details outlined below will guide applicants through the procedure to ensure a smooth submission of their project proposal:

The prescribed application form for scheme assistance.
Please provide a copy of the title deed for the property where the proposed or existing unit is located.
Proof of Coir Industry experience.
The Coir Board provided proof of the training.
The invoice will accompany the proposed machinery purchase.
An Industrial Establishment Certificate is issued by the District Industries Centre (DIC).
The plan and estimate for the construction of the workshed have been duly certified by a Chartered Engineer.
Project profile of the proposed project.
In the case of SC/ST, a copy of the caste certificate is required.
Any other supporting documents.

Conclusion

The Coir Udyami Yojana is an empowering initiative for would-be entrepreneurs in the coir sector, especially in rural areas. It supports sustainable development, self-employment, and the growth of India's coir industry by offering financial assistance and promoting eco-friendly production.

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