Funds released for coir modernisation scheme

New Delhi, Apr 29 (UNI) A sum of Rs 9 crore has been released by the Government to the Coir Board in Kerala, Tamil Nadu and Karnataka aimed at bringing about modernisation of the coir industry and benefitting 350 spinning units.

In the case of Kerala, the Centre has released Rs 4.72 crore to the state government, which has a total of 190 spinning units, 160 of them falling in the tiny/household units.

Tamil Nadu and Karnataka have received Rs 3.72 crore and Rs 36 lakh respectively, expected to benefit 140 spinning units, with a predominantly 130 of them falling in the tiny/household category in Tamil Nadu. Karnataka has 20 spinning units of which half are tiny/household units.

The Rs 243-crore centrally-sponsored scheme for the rejuvenation, modernisation and technology up-gradation of the coir industry, was launched in March 2008 for implementation during the Eleventh Plan period. Of this, the government grant component is Rs 99 crore, beneficiary contribution of Rs 12 crore and a term loan of Rs 132 crore from banks.

Financial assistance provided under the scheme is at the rate of 40 per cent of the project cost of up to Rs 80,000 for a spinning unit and Rs two lakh for a tiny/household unit.

The funds were released by the Government to the Coir Board, a statutory body under the Ministry of Micro Small and Medium Enterprises for implementation of the scheme during 2007-08 (3rd week of March, 2008), an official release here said.

UNI SD RL RK1910