Scheme of Grant-in-Aid to Voluntary Organisations Working for the Welfare of Scheduled Tribes 2026

The Coir Udyami Yojana from the Coir Board, Ministry of MSME, helps rural entrepreneurs set up coir Read More... businesses with financial aid and a subsidy. Read less

Details

Are you looking to start a coir business or expand an existing one? The Coir Udyami Yojana (CUY) is a scheme by the Government of India that can help you achieve this. It aims to boost the coir industry and create job opportunities, especially in rural areas.

What Is This Scheme?

The Coir Udyami Yojana is a Central Sector Scheme designed to provide financial assistance for setting up coir units. It's a credit-linked subsidy scheme, meaning you get a subsidy after securing a bank loan for your project. The Ministry of Micro, Small and Medium Enterprises (MSME) oversees this scheme, with the Coir Board acting as the nodal agency for its implementation.

Who Can Benefit From This Scheme?

This scheme is open to individuals who are Indian citizens and are 18 years or older. There's no income limit to apply. You can apply as an individual, a company, a self-help group (SHG), an NGO, a cooperative society, or other registered organizations. The scheme specifically encourages participation from SC/ST communities, women, and youth from rural areas, and also gives special focus to applicants from the North Eastern Region (NER).

Why This Scheme Is Important

The CUY plays a crucial role in modernizing the traditional coir industry. By providing financial support, it helps entrepreneurs set up units for coir fibre, yarn, or product manufacturing. This not only helps in creating modern coir enterprises but also generates employment and income opportunities in rural India, thereby contributing to economic development.

Objective

The Coir Udyami Yojana from the Coir Board, Ministry of MSME, helps rural entrepreneurs set up coir businesses with financial aid and a subsidy.

Benefits

1. Broad Sector-wise indicative categories of projects for which grant-in-aid will be considered are as follows:

SectorsCategory of ProjectsEducation1. Running and maintenance of Non-Residential Schools/ Residential Schools /Hostels.Education2. Sponsoring tribal girls from the North Eastern States viz. Assam, Meghalaya, Mizoram, Manipur, Nagaland, Tripura, Arunachal Pradesh, Sikkim, and from Andaman & Nicobar Islands and Lakshadweep for study in reputed educational institutions.Health3. Running/maintenance of hospitals/dispensaries with 10 or more beds.Health4. Mobile DispensaryLivelihood5. Enhancement of livelihood and income generation opportunities through infrastructure support and capacity building in sectors like agriculture, fishery, dairy and animal husbandry, water conservation, and organic/natural farming.

2. In addition to the above, during natural calamities, disasters, or pandemic, the Ministry of Tribal Affairs may provide emergency health services including the provision of food and water through NGOs in the affected area for which norms may be decided in consultation with IFD with approval of Minister, Ministry Tribal Affairs.

3. Priority will be given to programmes/projects that benefit Particularly Vulnerable Tribal Groups (PVTGs), LWE-affected districts, and tribal populations in remote or difficult areas.

4. Under the scheme, grants are given to Organizations as per norms fixed for different projects given inAnnexure-1, subject to the ceilings for recurring and non-recurring grants.

Sources and references

Official Website

Eligibility Criteria

To apply for the Coir Udyami Yojana, here are the key conditions:

You must be an individual who is an Indian citizen and at least 18 years old.
There is no income ceiling to apply for this scheme.
Your project should be related to producing coir fibre, yarn, or coir products.
You can apply as an individual, company, self-help group (SHG), Non-Governmental Organization (NGO), production cooperative society, joint liability group, or a registered institution/trust.
You should not have previously received a government subsidy for the same purpose under any other Central or State Government scheme.
If you are applying as an institution, you need to submit a certified copy of your bylaws.
If you already own a workshed, only the cost of the machinery will be considered as the project cost.
The project cost must include capital expenses like buildings and machinery.
Only one member from a family (including self and spouse) is eligible for financial assistance under this scheme.
Special focus is given to SC/ST candidates and those from the North Eastern Region (NER).
The scheme aims to encourage women and youth participation.

How To Apply

The Coir Udyami Yojana is implemented through eligible financial institutions. Here’s a general idea of the process:

Prepare a detailed project report for your proposed coir unit.
Submit your application along with all required documents to a participating financial institution. These institutions include Scheduled Commercial Banks, Regional Rural Banks, and Co-operative Banks that are members of the Credit Guarantee Trust Fund for MSME.
The financial institution will review your application and project report.
If approved, the bank will sanction the loan and disburse the funds for setting up your project.
The subsidy will be processed by the Coir Board and managed by the bank.

For specific application forms and detailed guidelines, you can visit the official Coir Board website or contact their regional offices.

Documents Required

When applying for the Coir Udyami Yojana, you'll generally need the following documents:

Completed application form for the scheme.
A copy of the title deed for the property where the unit will be set up or is located.
Proof of your experience in the coir industry.
Proof of any relevant training received from the Coir Board.
Invoice and details of the machinery you plan to purchase.
Industrial Establishment Certificate from the District Industries Centre (DIC).
A plan and estimate for constructing a workshed, certified by a Chartered Engineer.
A detailed project profile of your proposed venture.
If you belong to SC/ST categories, a copy of your Caste Certificate.
Any other supporting documents as requested by the implementing agency or bank.

FAQ’s

What is the maximum project cost allowed under the Coir Udyami Yojana?

The maximum project cost that can be considered for the scheme is ₹10,00,000/-. Working capital can be part of the project but will not be eligible for subsidy and should not exceed 25% of the total project cost.

Can I get the subsidy amount directly before starting the unit?

No, the subsidy amount is kept as a Term Deposit Receipt (TDR) by the bank for 2 years after the loan is disbursed and the unit is set up. After these 2 years, the subsidy amount is credited to your loan account.

If I've already received a subsidy for a similar project from another government scheme, can I still apply?

Unfortunately, no. If you have already received financial assistance or subsidy under any other scheme of the Central Government or State Government for the same purpose, you are not eligible for this scheme.

What is the minimum age requirement to apply for this Yojana?

You need to be at least 18 years old to be eligible to apply for the Coir Udyami Yojana.

What are the financial contributions required from me and the bank?

Under the scheme, you, as the beneficiary, need to contribute 5% of the project cost. The remaining 55% of the project cost will be provided by the bank as a loan. The government provides a 40% subsidy on the eligible project cost.

Does the scheme have any special provisions for certain groups?

Yes, the scheme gives special focus and encouragement to candidates from Scheduled Castes (SC) and Scheduled Tribes (ST) communities, as well as applicants from the North Eastern Region (NER). It also promotes participation by women and youth.

Can I sell the machinery or the coir unit after receiving the subsidy?

No, the machinery and assets created using the subsidy under this scheme cannot be sold or transferred without getting prior permission from the Coir Board.

How is the implementation of the scheme monitored?

The implementation and the physical setup of the coir units are jointly monitored by the Coir Board through its regional offices and the concerned bank that has provided the loan.

What specific documents are needed to apply?

You'll generally need to submit the application form, title deed of the property, proof of coir industry experience, training proof (if any from Coir Board), machinery invoice, DIC certificate, workshed plan/estimate (if applicable), project profile, and caste certificate (for SC/ST). Other supporting documents might also be required.

Who is responsible for evaluating and recommending applications?

The Regional Level Selection Committee is responsible for evaluating the applications received and recommending eligible cases to the banks for further processing and sanctioning of loans.