Integrated Scheme on Agriculture Cooperation 2026
The Coir Industry Technology Upgradation Scheme (CITUS), part of the Coir Vikas Yojana, supports the modernization and Read More... expansion of coir production units across India. Read less
Details
Looking to upgrade your coir business or start a new one? The Ministry of Micro, Small & Medium Enterprises, Government of India, has a scheme that can help you harness modern technology and boost your production. It’s called the Coir Industry Technology Upgradation Scheme (CITUS), a key part of the larger Coir Vikas Yojana.
What Is This Scheme?
The CITUS scheme is designed to bring the coir industry into the 21st century. It aims to equip coir production units with advanced technology and infrastructure. This leads to better quality products, increased productivity, and more efficient use of raw materials. The goal is to make Indian coir products more competitive both domestically and internationally.
Who Can Benefit From This Scheme?
This scheme is for entrepreneurs and businesses involved in coir production and processing. This includes individuals, partnership firms, Self-Help Groups (SHGs), associations, and enterprises from the small, medium, cooperative, private, or public sectors. Whether you want to set up a brand-new unit or upgrade your existing facilities to produce value-added coir or coir-blended items, you might be eligible.
Why This Scheme Is Important
India has a rich tradition of coir craft. This scheme aims to preserve that heritage while embracing modern advancements. By supporting technological upgrades, the CITUS scheme helps create more jobs, especially for women in rural areas. It also encourages young entrepreneurs to enter the industry and promotes the use of eco-friendly production methods, contributing to a cleaner, more sustainable coir sector.
Objective
Benefits
Sources and references
Eligibility Criteria
- All newly established coir production/processing units, including individuals, partnership firms, SHGs, Associations, and enterprises (small scale, medium, co-operative, private, or public sector), looking to produce value-added coir/coir blended items where coir is the dominant fiber, are eligible to apply. This is for setting up new units or upgrading existing ones.
- Coir production/processing units registered with the Coir Board under the Coir Industry (Registration) Rules, 2008, and holding a Udyog Aadhaar are eligible to apply for modernization assistance.
- For projects focused on modernization, units must have completed 5 years of successful operation before applying for assistance under this component.
- Entrepreneurs who have already received central government subsidy under schemes like PMEGP, CUY, DPI, TUF, etc., for the same purpose are not eligible for assistance under CITUS.
Note 01: This scheme is open to the entire coir sector across the country. The project cost for units applying for financial assistance must fall within the investment limits defined for Small and Medium Enterprises under the MSME Act.
Note 02: All equipment and machinery eligible for assistance must meet the standards set by the Bureau of Indian Standards (BIS) from time to time.
Note 03: A five-member Technical Committee (TC) will periodically fix and review the ceiling prices for various machinery items.
Note 04: Machinery/equipment should comply with BIS standards. You can purchase them from the open market with valid GST-invoiced receipts. Imported machinery is also an option for setting up high-tech units, provided the beneficiary can justify the need for importing.
Note 05: Machinery suppliers must provide a performance guarantee for at least two years to the beneficiaries. A copy of this guarantee should be submitted when availing the scheme's incentive. For imported machinery, certified copies of invoices, shipping bills, etc., along with a performance certificate from the supplier, are required.
Note 06: For modernization projects, only the cost of new machinery, equipment, power generators, material handling equipment, conveyors, etc., that are installed or procured will be considered for calculating the project cost and the amount of financial assistance.
How To Apply
- Prepare a Detailed Project Report (DPR) for your proposed coir unit or modernization plan.
- Submit the DPR along with all necessary documents to the nearest Regional Office (RO) or Sub-Regional Office (SRO) of the Coir Board. Applications are typically submitted online.
For more details on the application process and to find the nearest office, please refer to the official website of the Coir Board.
Documents Required
- Udyog Aadhaar Number
- Details of Registration under Coir Board Registration Rules 2008
- PAN & Aadhaar Card of the Applicant
- Detailed Project Report (DPR)
- If a Partnership Firm: Registered Partnership Deed (attested by a notary)
- If a Company: Registration Certificate from Registrar of Companies, Memorandum of Association & Articles of Association
- If a Co-operative Society: Registration Certificate from the competent authority/Registrar of Co-operative Societies
- If an NGO/ SHG: Registration Certificate from the competent authority
- For Machinery Procurement: Attested copies of bills, payment receipts, performance guarantee from the machinery manufacturer, documents from the electricity authority, and a validation certificate from a Chartered Accountant.
- Details of any previous assistance received from Coir Board (IPA)
- Details of commencement of production
- Bank account details
- Copy of the sanction letter and techno-financial appraisal from the bank/financial institution (if applicable)
- Certificate to be issued by a Chartered Accountant
- An undertaking confirming that you have not applied for or availed assistance under similar government programs for the same purpose.
- If original documents are submitted as collateral with banks: Copies of these documents, duly attested by the Bank Manager, must be submitted.
- Any other document as may be required by the implementing agency.
Note: All machinery/equipment must conform to BIS/Coir Board Standards.
FAQ’s
What exactly is the Coir Industry Technology Upgradation Scheme (CITUS)?
The CITUS scheme is a special component under the broader Coir Vikas Yojana, initiated by the Ministry of Micro, Small & Medium Enterprises, Government of India. Its main goal is to equip coir production units with modern technology and infrastructure, thereby improving product quality and output.
Who is responsible for implementing this scheme?
The Coir Board, located in Kochi, acts as the Nodal Agency for carrying out the CITUS scheme. The Coir Board's regional and sub-regional offices manage the implementation process.
Can I apply if I've already received government subsidies for my coir business?
Generally, no. Entrepreneurs who have already received central government subsidies under schemes like PMEGP, CUY, DPI, or TUF for the same purpose are not eligible for financial assistance under the CITUS scheme.
What financial help does the scheme offer?
The scheme provides financial assistance amounting to 25% of the cost of eligible Plant and Machinery that coir units purchase. The maximum assistance a single coir unit or project can receive is ₹2.50 crore.
What are the main goals of the CITUS scheme?
The scheme aims to improve productivity and quality by providing modern infrastructure, establish new state-of-the-art coir processing units, expand the industry into new areas, promote better raw material usage, create more jobs (especially for women in rural areas), attract new entrepreneurs, and make the coir industry more competitive and eco-friendly.
How will I receive the financial assistance?
The financial assistance is paid in Indian Rupees within India. It's disbursed directly to your bank account through the Direct Benefit Transfer (DBT) mode and managed via the Public Finance Management System (PFMS). This is done as a reimbursement after you have made the investment in plant and machinery.
Do I need to be registered with the Coir Board to apply?
Yes, it's necessary. All coir production or processing units applying for modernization assistance under this scheme must be registered with the Coir Board as per the Coir Industry (Registration) Rules, 2008, and also possess a Udyog Aadhaar.
What is the specific process for applying for the scheme?
To apply, you need to submit a Detailed Project Report (DPR) in the format specified by the scheme. This application should be sent to the nearest Regional Offices (ROs) or Sub-Regional Offices (SROs) of the Coir Board, typically through the online application portal.
Which types of coir units are eligible for this scheme?
Assistance is available for individuals, partnership firms, SHGs, associations, and enterprises (small, medium, cooperative, private, or public sector). You are eligible if you are looking to set up a new coir unit or upgrade an existing one for producing value-added coir or coir-blended items, where coir is the primary fiber.
When will the funds be released after I apply?
The financial aid is released only after your Coir Unit has successfully installed the appropriate and approved Plant and Machinery and has started its operations. So, ensure everything is set up and running before expecting the reimbursement.
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