Coir Udyami Yojana

The Coir Udyami Yojana is a credit-linked subsidy programme run by the Coir Board under the Ministry of Micro, Small and Medium Enterprises (MSME). It exists to build entrepreneurship and generate employment in the coir sector, with a focus on rural areas.

Under the scheme, new coir manufacturing units can be set up with financial assistance given as subsidies tied to bank credit. This tackles the capital needs of individuals and other entities that want to enter coir fibre, yarn and product manufacturing, and it supports the sustainable growth of the coir industry.

Through these financial incentives, the scheme helps modernise coir production, improve its competitiveness in the market, and raise the livelihoods of artisans and entrepreneurs working in this traditional sector. Special categories — SC/ST, women and youth — are a particular focus.

- **Step 1: Submission of application**: Complete the prescribed application form (see Part-B of the guidelines document) and attach every document that is required. - **Step 2: Filing with the Coir Board**: Submit the application at the nearest Field Office of the Coir Board. - **Step 3: Entrepreneurship Development Programme (EDP)**: A 5-day Entrepreneurship Development Programme (EDP) is compulsory and must be undertaken either before or after submission, though in all cases ahead of the bank recommendation. - **Step 4: Scrutiny and committee review**: The application undergoes scrutiny and is thereafter placed before the Regional Level Selection Committee for evaluation. - **Step 5: Forwarding to the bank**: Once the committee grants approval, the application is forwarded to the bank. - **Step 6: Beneficiary contribution**: Where the bank approves the application, the applicant is required to deposit the 5% beneficiary contribution within 30 days. - **Step 7: Deposit of subsidy**: The Coir Board thereafter deposits the 40% subsidy component with the bank. - **Step 8: Disbursement of loan**: The bank disburses the term loan within 30 days of receiving the subsidy. - **Step 9: Implementation of the project**: The approved project has to be completed within 6 months. - **Step 10: Verification and adjustment**: Before the final subsidy adjustment, a physical verification is carried out by the Coir Board and the bank.

The Coir Board's Field Office carries out the initial scrutiny of applications. Cases found eligible are passed on to a Regional Level Selection Committee, which assesses the proposals and, if satisfied, recommends them to financial institutions for credit linkage. The bank's own approval and due diligence remain the deciding factors for final selection and sanction.