Coir Udyami Yojana

Coir Udyami Yojana (CUY) is a Central Sector Scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME) and implemented by the Coir Board. It is a credit-linked subsidy scheme for setting up coir units in the coir sector.

The scheme provides financial assistance through a combination of Government subsidy, bank credit and beneficiary contribution.

Key financial structure:

• Beneficiary contribution is 5% of the eligible project cost.
• Bank credit is 55% of the eligible project cost.
• Government subsidy is 40% of the eligible project cost.
• The maximum admissible project cost is ₹10 lakh.
• One cycle of working capital may be included in the project proposal, but it must not exceed 25% of the project cost.
• Working capital is not eligible for subsidy.

For an eligible project cost of ₹10 lakh, the maximum Government subsidy is ₹4 lakh. Working capital, where sanctioned, is financed separately and does not increase the subsidy amount.

The scheme supports projects related to coir fibre, coir yarn and other coir products.

Eligible applicants:

• An individual above 18 years of age with Indian citizenship.
• A Company.
• A Self Help Group (SHG).
• A Non-Governmental Organization (NGO).
• An institution registered under the Societies Registration Act, 1860.
• A Production Co-operative Society.
• A Joint Liability Group.
• A Charitable Trust.

There is no income ceiling for receiving assistance under CUY. The applicant must not have already received Government subsidy under another Central or State Government scheme for the same purpose.

Special focus is given to SC/ST beneficiaries and beneficiaries from the North Eastern Region. Women and youth participation in rural areas is also encouraged. Only one person from one family is eligible for financial assistance for setting up a project, where family includes self and spouse.

Important project conditions:

• The project should include eligible capital expenditure such as building and machinery.
• If the applicant already owns a work-shed, the cost of the required machinery may be considered as project cost.
• Inflated costing of machinery, building or other project components to obtain higher subsidy is not permitted and may result in rejection or reduction of the admissible project cost.
• Special-category applicants must submit the applicable caste/community certificate.
• Institutional applicants must submit applicable bye-laws.
• Working capital may be included in the proposal but is not eligible for subsidy.

Application process:

• Submit the prescribed application form with required supporting documents.
• Apply to the nearest Coir Board Field Office.
• Complete the mandatory 5-day Entrepreneurship Development Programme (EDP) before or after submission but before bank recommendation.
• The application is scrutinized and considered by the Regional Level Selection Committee.
• Approved cases are forwarded to the financing bank.
• After bank approval, the applicant deposits the 5% beneficiary contribution within 30 days.
• Coir Board deposits the 40% Government subsidy with the financing bank.
• The bank disburses the term loan within the prescribed 30-day period after subsidy deposit.
• The project must be completed within 6 months.
• Coir Board and the bank conduct physical verification before final subsidy adjustment.

Financing institutions:

• Scheduled Commercial Banks listed in the Second Schedule of the RBI Act.
• Regional Rural Banks.
• Eligible Co-operative Banks that are Member Lending Institutions of the Credit Guarantee Trust for MSME.
• Eligible SC/ST/OBC Finance and Development Corporations.

Documents required:

• Prescribed application form.
• Property title deed of the proposed or existing unit location.
• Proof of coir industry experience.
• Proof of training availed from the Coir Board.
• Machinery quotation/invoice.
• Industrial Establishment Certificate issued by the District Industries Centre.
• Workshed plan and estimate certified by a Chartered Engineer, where applicable.
• Project profile of the proposed project.
• Caste certificate, where applicable.
• Any other required supporting documents.

Applicants should verify the latest Coir Board instructions and applicable financing-bank requirements before submission.