Coir Udyami Yojana is a credit linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises to promote the coir industry. The scheme helps individuals and enterprises set up coir units by providing financial assistance for capital investment and machinery. It covers project costs up to ₹10 lakhs, with working capital up to 25% of the project cost.
The scheme is implemented by Coir Board, a statutory body under the Ministry of MSME, at the national level.
Scheme Key Highlights (Short Summary)
• Launched by: Ministry of MSME
• Project Cost: Up to ₹10 lakhs, with working capital of 25% of the project cost
• Subsidy for Machinery: 40% of project cost
• Target Group: Individuals, Self-Help Groups, NGOs, Co-operatives, and others in the coir sector
• Eligibility: Open to new and existing enterprises in the coir production sector
Benefits
• Financial Support:
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40% subsidy on project cost for setting up coir units, with a cap of ₹4 lakhs
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Subsidy calculation excludes working capital
• Project Cost: Maximum project cost of ₹10 lakhs
• Working Capital: Can be included but will not be considered for subsidy
• Interest-Free Loan: Available for the purchase of coir machinery
Eligibility
• Individual applicants must be above 18 years of age with Indian Citizenship
• Eligible entities include individuals, Self Help Groups, NGOs, Cooperative Societies, and institutions
• The project must be focused on coir fibre, yarn, or product production
• The scheme applies to new and existing units engaged in coir manufacturing
• The project cost can include building and machinery
• Working capital is allowed, but it will not be subsidized under the scheme
• Applicants must agree to maintain machinery, ensure production, and allow inspections by Coir Board officers
Exclusions
• Units already availing government subsidies under any other schemes for the same purpose are ineligible
• Working capital will not be considered for subsidy under this scheme
• Inflated costing for machinery or project expenses to claim a higher subsidy will lead to rejection of the application
Application Process
Online
• Step 1: Visit the official Coir Udyami Yojana portal and click on “Apply Now”
• Step 2: Log in with your user name and password if already registered; if not, click on “New Login Registration”
• Step 3: Fill in the required application details and upload all necessary documents
• Step 4: Submit your application for review
Documents Required
• Prescribed Application Form
• Title Deed of property where the unit will be set up
• Proof of Coir Industry Experience
• Proof of Training availed from Coir Board
• Machinery Purchase Invoice
• Industrial Establishment Certificate issued by District Industries Centre (DIC)
• Plan & Estimate for construction of the workshed, certified by a Chartered Engineer
• Project Profile of the proposed unit
• Caste Certificate (for SC/ST applicants)
• Any other relevant documents
Frequently Asked Questions (FAQs)
Q: What is Coir Udyami Yojana?
A: It is a credit linked subsidy scheme designed to support individuals and organizations in setting up coir production units by providing financial assistance for capital investment.
Q: Who is eligible to apply for the scheme?
A: Individuals and entities engaged in coir production, including Self Help Groups, Cooperatives, and NGOs.
Q: What is the maximum subsidy available?
A: The maximum subsidy is 40% of the project cost, with a ceiling of ₹4 lakhs.
Q: What types of projects are eligible under the scheme?
A: The scheme is applicable to coir production units, including machinery for fibre/yarn production and other coir-related products.
Q: Can I include working capital in the project cost?
A: Yes, working capital can be included, but it will not be subsidized under the scheme.
Q: How is the subsidy amount disbursed?
A: The subsidy is provided after the project setup and is based on the machinery cost as per the approved project profile.
Q: What happens if I fail to maintain the machinery?
A: If the machinery is not maintained or used properly, the Coir Board may revoke the subsidy and ask for repayment.
Q: Are there any additional conditions for the subsidy?
A: Yes, the applicant must ensure the unit operates for at least 5 years and follow all guidelines related to the maintenance and operation of the machinery.