Canara Bank signs MoU with Coir Board for implementing REMOT

Bangalore, Aug 4 (UNI) Canara Bank has signed a Memorandum of Understanding (MoU) with Coir Board for implementing Union government's Rejuvenation, Modernization and Technology Upgradation (RMOT) of Coir industry in the country.

The scheme envisages financial assistance to the tiny and household sectors in Coir industry to enable them to install upgraded technology machinery for increasing production and employment, besides better utilisation of raw material.

The MoU was signed here by Canara Bank General Manager K Venkataramaiah and Coir Board Secretary M Kumararaja, according to a release here today.

Under REMOT 4000 spinning units involving a project outlay of Rs 80 Crores having an employment potential of 32,000 and 3200 tiny and household units involving a project outlay of Rs 160 crore with employment potential of 28,800 are expected to be benefited.

The project cost of Rs two lakhs for each individual spinning units and project cost of Rs five lakhs for each tiny and household unit shall be funded by five per cent promoter's investment, 55 per cent Bank loan and 40 per cent grant by the Ministry through Coir Board, which is the Nodal Agency for the implementation of the Scheme.

The Bank would extend Composite Loan to tiny and household units engaged in processing and production of coir and coir related products.

The government of India has allotted, under Eleventh Plan, a total project outlay of Rs 243 crore for the scheme.

Coir Board has identified the coir clusters in the States of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal and North Eastern region to cover under the REMOT scheme.

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