Coir Udyami Yojana

The Coir Udyami Yojana is a credit-linked subsidy scheme from the Ministry of Micro, Small and Medium Enterprises (MSME), implemented by the Coir Board. It supports the creation of new coir manufacturing units by offering financial assistance tied to bank credit, with a focus on rural employment and entrepreneurship.

The scheme covers capital needs for ventures in coir fibre, yarn, and product manufacturing. It prioritises support for SC/ST applicants, women, and youth, and aims to modernise production and improve market competitiveness for artisans and entrepreneurs in the coir sector.

- **Step 1: Application Submission**: Complete the prescribed application form (refer to Part-B of the guidelines document) and enclose all necessary documents. - **Step 2: Submit to Coir Board**: Send the application to the nearest Field Office of the Coir Board. - **Step 3: Entrepreneurship Development Programme (EDP)**: Attend a compulsory 5-day Entrepreneurship Development Programme (EDP) either before or after submission, but before the bank recommendation stage. - **Step 4: Scrutiny and Committee Review**: The application undergoes scrutiny and is then referred to the Regional Level Selection Committee for assessment. - **Step 5: Bank Forwarding**: Once the committee approves, the application is passed on to the bank. - **Step 6: Beneficiary Contribution**: If the bank gives its approval, the applicant must pay their 5% beneficiary contribution within 30 days. - **Step 7: Subsidy Deposit**: Following this, the Coir Board deposits the 40% subsidy component with the bank. - **Step 8: Loan Disbursement**: The bank releases the term loan within 30 days of receiving the subsidy. - **Step 9: Project Implementation**: The approved project must be finished within 6 months. - **Step 10: Verification and Adjustment**: A physical verification is carried out by the Coir Board and the bank prior to the final subsidy adjustment.

Applications are initially reviewed by the Coir Board's Field Office. Those that meet the eligibility criteria are subsequently referred to a Regional Level Selection Committee, which assesses the proposals and, once approved, forwards its recommendations to financial institutions for credit linkage. The final selection and sanctioning of credit depend on the bank's approval and its own due diligence process.