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Coir Udyami Yojana Scheme

The Coir Udyami Yojana, previously known as the Rejuvenation, Modernization, and Technology Upgradation of the Coir Industry, is a credit-linked subsidy scheme approved by the Government of India. This scheme aims to foster sustainable development within the Coir Industry, ultimately creating more employment opportunities for women and weaker sections in rural areas. Administered by the Ministry of Micro, Small and Medium Enterprises (MSME), the scheme is executed by the Coir Board, a statutory organisation under the Ministry of MSME. This article explores the objectives, implementation, and benefits of the Coir Udyami Yojana.

Implementing Agencies of Coir Udyami Yojana

The Coir Udyami Yojana is a Central Sector Scheme, with the Ministry of MSME overseeing its administration. The scheme’s implementation is carried out by the Coir Board, a statutory organisation under the Ministry of MSME, serving as the national-level nodal agency. At the state level, various offices and agencies collaborate to execute the scheme effectively, including Regional Offices, Sub Regional Offices, Coir Mark Scheme Offices, Showrooms, and Sales Depots.

Objectives of the Coir Udyami Yojana Scheme

The primary objectives of the Coir Udyami Yojana are as follows:

  • Modernisation of the Coir Industry: The scheme seeks to modernise the Coir Industry by integrating contemporary technology into the production and processing of coir and coir products.
  • Upgradation of Technology: It aims to upgrade production and processing technology to enhance productivity, quality, and product diversity.
  • Worker Welfare: To increase the efficiency and productivity of workers in the sector, ultimately improving their earnings.
  • Resource Utilisation: The scheme intends to maximise the utilisation of coconut husks and increase the production of coir fibre and coir products.
  • Rural Employment: Generate employment opportunities in rural areas, especially in regions known for coconut production.
  • Gender Empowerment: Promote women’s employment in rural areas, contributing to gender empowerment.
  • Socio-economic Development: Enhance the socio-economic conditions of producers and workers engaged in the coir industry.
  • Inclusive Growth: Contribute to inclusive growth, with a focus on vulnerable sections such as Scheduled Castes (SC), Scheduled Tribes (ST), and the North Eastern Region (NER).
  • Youth Engagement: Provide training to rural youth in coconut-producing states to encourage their involvement in the coir sector.
  • Backward/Forward Linkages: Establish backward and forward linkages to support unit holders who receive assistance under the scheme.

Financial Assistance Under the Scheme

The Coir Udyami Yojana offers financial assistance to beneficiaries in the form of a subsidy, bank credit, and beneficiary contributions. Here’s a breakdown of the financial assistance levels:

  • Beneficiary’s Contribution (of Project Cost): 5%
  • Bank Credit: 55%
  • Rate of Subsidy (of Project Cost): 40%

The maximum project cost eligible for assistance is Rs.10 lakhs, plus working capital, not exceeding 25% of the project cost. Banks may consider a composite loan, inclusive of working capital, while excluding the working capital component when calculating the subsidy.

Eligibility to Apply for Coir Udyami Yojana

  • Individuals above 18 years of age
  • Indian citizens
  • No income ceiling for project assistance
  • The scheme focuses exclusively on projects related to coir production and coir products within the coir sector.
  • Eligible entities include individuals, companies, Self-Help Groups, NGOs, Institutions registered under the Societies Registration Act 1860, Production Co-operative Societies, Joint Liability Groups, and Charitable Trusts.

Rate of Interest and Repayment Schedule

The interest rate for loans under the Coir Udyami Yojana scheme is at par with the base rate. The repayment schedule should not exceed 7 years, following an initial moratorium period as prescribed by the concerned Bank/financial institution.

The loan is covered under the Credit Guarantee Trust Fund Scheme of the Office of the Development Commissioner, Ministry of MSME, with the guarantee fee borne by the beneficiary or the bank. Notably, the term loan is provided without collateral or third-party guarantees.

Required Documents

To apply for assistance under the Coir Udyami Yojana, applicants must submit a set of essential documents as below –

  • Application Form
  • Copy of the Title Deed of the property on which the unit is proposed to be set up or already located
  • Proof of Coir Industry experience
  • Proof of training availed from Coir Board
  • Invoices for machinery proposed to be purchased
  • Industrial Establishment Certificate issued by the District Industries Centre (DIC)
  • Plan and Estimate for construction of workshed certified by a Chartered Engineer
  • Project Profile of the proposed project
  • Caste Certificate (if applicable for SC/ST applicants)
  • Any other relevant supporting documents

FAQs on Coir Udyami Yojana

How to apply for the Coir Udyami scheme?

Eligible applicants can apply directly on the Coirservices.gov website. Offline applications can be collected from Coir Board Offices, District Industries Centres, Coir Project Offices, Panchayati Raj Institutions and the Nodal Agencies approved by the Board for this purpose and have to be submitted directly to the Coir Board Field Offices or through the DICs.

Can units that have already received government subsidies for a similar purpose avail of the Coir Udyami Yojana scheme?

No, units that have already availed government subsidies under any other scheme of the Government of India or State Government for the same purpose are not eligible to claim subsidies under this scheme.

How is the rate of interest determined for loans under the Coir Udyami Yojana?

The interest rate chargeable for loans is at par with the base rate. Banks or financial institutions may prescribe an initial moratorium period for repayment.

Is collateral or third-party guarantee required for the term loans provided under this scheme?

No, the term loans provided under the Coir Udyami Yojana are without collateral or third-party guarantee. Banks should not insist on such documents.

Are there any income criteria or restrictions for individuals or entities to apply for assistance under the Coir Udyami Yojana?

No, there are no income ceilings or restrictions for individuals or entities applying for assistance under the Coir Udyami Yojana. The scheme is open to a wide range of beneficiaries, including individuals, companies, self-help groups, non-governmental organizations, registered institutions, co-operative societies, joint liability groups, and charitable trusts.

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