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

The Coir Udyami Yojana is a government initiative to boost the coir industry and create jobs in Read More... rural India by providing financial aid for setting up coir-related businesses. Read less

Details

Looking to start your own coir business or expand an existing one? The Coir Udyami Yojana (CUY) might be just what you need. This scheme, run by the Coir Board under the Ministry of MSME, aims to give a modern touch to the traditional coir industry and generate employment opportunities, especially in rural areas.

What Is This Scheme?

The Coir Udyami Yojana is a credit-linked subsidy scheme designed to help individuals and groups set up coir units. It provides financial assistance for projects focused on producing coir fibre, yarn, or other coir products. The goal is to modernize the coir sector and make it more competitive.

Who Can Benefit From This Scheme?

This scheme is open to a wide range of applicants, including individuals, companies, self-help groups (SHGs), NGOs, cooperative societies, and trusts. The primary requirement is that you must be an Indian citizen, 18 years or older, and intend to set up a project in the coir sector. Special focus is given to individuals from Scheduled Castes (SC), Scheduled Tribes (ST), and those living in the North Eastern Region (NER), as well as encouraging women and youth participation.

Why This Scheme Is Important

The CUY plays a crucial role in empowering rural entrepreneurs by providing them with the financial means to establish sustainable businesses. It not only helps in economic development by creating self-employment but also contributes to the growth and modernization of India's coir industry, which is a significant source of livelihood for many.

Objective

The Coir Udyami Yojana is a government initiative to boost the coir industry and create jobs in rural India by providing financial aid for setting up coir-related businesses.

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

You must be an Indian citizen and at least 18 years old.
There is no income limit to apply for this scheme.
Your project must be related to the production of coir fibre, yarn, or coir products.
You can apply as an individual, company, self-help group (SHG), Non-Governmental Organization (NGO), registered society, production cooperative society, joint liability group, or charitable trust.
You should not have received a government subsidy for the same purpose from any other Central or State Government scheme.
If you are setting up a project in your existing workspace, the project cost will only include the machinery expenses.
If you belong to SC/ST categories, you need to provide a valid caste certificate.
Institutions applying must submit a certified copy of their bylaws.
Your project cost must cover capital expenses like buildings and machinery.
While working capital can be part of the project, it will not receive any subsidy and should not exceed 25% of the total project cost.
Only one member from a family (including self and spouse) can avail financial assistance under this scheme.
Special preference is given to SC/ST applicants and those from the North Eastern Region (NER).
The scheme actively encourages participation from women and youth in rural areas.

How To Apply

Download the prescribed Application Form for scheme assistance.
Complete the application form accurately and gather all necessary documents.
Submit your application to the designated financial institutions, which include Scheduled Commercial Banks, Regional Rural Banks, and Co-operative Banks. You can also approach SC/ST/OBC Finance and Development Corporations.
Your application will be evaluated by the Regional Level Selection Committee, which will recommend eligible cases to the banks.
The bank will process your loan application and disburse the funds upon approval.
The Coir Board, in coordination with the bank, monitors the implementation and verification of your unit.
The subsidy will be disbursed by the Coir Board to the bank and held as a Term Deposit Receipt (TDR) for 2 years before being credited to your loan account.

For more details or to find the application form, you can visit the official website of the Coir Board or contact your nearest Coir Board regional office.

Documents Required

The application form, duly filled.
Proof of ownership for the land or property where the unit will be set up (Title Deed copy).
Evidence of your experience in the coir industry.
Proof of any 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 the workshed, certified by a Chartered Engineer.
A detailed Project Profile of your proposed coir unit.
If you belong to the SC/ST category, a copy of your Caste Certificate.
Any other supporting documents as may be required.

FAQ’s

What is the maximum financial limit for a project under the Coir Udyami Yojana?

The maximum admissible project cost is ₹10,00,000, excluding working capital. Working capital, if included, should not exceed 25% of the project cost and is not eligible for subsidy.

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

No, the machinery and assets created with the help of this scheme cannot be sold or transferred without getting permission from the Coir Board first.

How is the subsidy released under the scheme?

The subsidy amount is held by the bank as a Term Deposit Receipt (TDR) for 2 years after the loan is disbursed. After this period, it is then credited to your loan account.

Are there any specific provisions for individuals from the North Eastern Region?

Yes, the scheme places special focus on beneficiaries from the North Eastern Region (NER) and encourages their participation.

What kind of institutions are eligible to apply for this scheme?

The scheme is open to individuals, companies, self-help groups (SHGs), Non-Governmental Organizations (NGOs), registered societies, production cooperative societies, joint liability groups, and charitable trusts.

Is there a minimum age requirement to apply?

Yes, you must be at least 18 years old to be eligible to apply for the Coir Udyami Yojana.

What is the role of the bank in this scheme?

Banks are responsible for processing loan applications, disbursing the full project cost, and holding the subsidy as a Term Deposit Receipt for 2 years before crediting it to the beneficiary's account.

Can I get financial help if I have already received subsidy for a similar business?

No, if you have already received financial assistance or subsidy under any other scheme from the Central or State Government for the same purpose, you are not eligible for this scheme.

What is the total financial support structure under the Coir Udyami Yojana?

The financial structure involves 5% beneficiary contribution, 55% bank credit (loan), and a 40% government subsidy on the eligible project cost.

Which types of banks can offer loans under this scheme?

Loans can be provided by all Scheduled Commercial Banks listed in the RBI Act, all Regional Rural Banks, and Co-operative Banks that are Member Lending Institutions (MLIs) of the Credit Guarantee Trust Fund for MSME.