Coir Udyami Yojana

Introduction:

• Coir Udyami Yojana – Credit linked subsidy scheme for coir units

Ministry/Agency:

• Administered by the Ministry of Micro, Small and Medium Enterprises
• Implemented by the Coir Board

Benefits:

• Beneficiary’s contribution – 5%
• Bank credit – 55%
• Rate of subsidy – 40%
• Maximum project cost – Rs.10 lakhs + working capital (not exceeding 25% of project cost)

Eligibility:

• Indian citizens above 18 years old
• No income ceiling
• Projects for production of coir fibre/yarn/products
• Available to individuals, companies, self-help groups, NGOs, and more
• Project cost includes building and machinery
• Option to include one cycle of working capital

Implementation Strategy:

• Financial institutions providing loans under CUY
• Bond with Coir Board for proper maintenance and use of machinery
• Recovery of grant for fraudulent misrepresentation or unit going out of production within 5 years
• Exclusion for units that have already received Govt. subsidy for the same purpose
• Working capital not considered for subsidy
• Inflated costing applications will be rejected or considered with reduced project cost.