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Business & Entrepreneurship

Coir Udyami Yojana

The scheme "Coir Udyami Yojana" by the Coir Board, Ministry of MSME, Government of India, aims to modernize the coir industry and generate rural employment. It offers credit-linked financial assistance to establish coir units by eligible applicants.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- Beneficiary’s contribution (of Project Cost): 5%- Bank credit: 55%- Rate of Subsidy (of project cost): 40% | Note: | - The maximum admissible cost of the project is ₹10,00,000/- plus working capital. Working capital shall not exceed 25% of the project cost. Subsidy will be computed excluding the working capital component. | - The Bank will sanction 95% of the project cost after adjusting 5% beneficiary contribution deposited and disburse the full amount of the project cost, including the beneficiary contribution, in installments for setting up the project.

Who can apply

The applicant must be an individual above 18 years of age with Indian Citizenship.; The applicant will not be subject to any income ceiling for receiving assistance under the scheme.; The applicant must set up a project related to the production of coir fibre, yarn, or products under the coir sector.; The applicant may be an individual, a Company, Self self-help group (SHG), a Non-Governmental Organization (NGO), Institution registered under the Societies Registration Act, 1860, a Production Co-operative Society, a Joint Liability Group, or a Charitable Trust.; The applicant must not have already availed a government subsidy under any other scheme of the Government of India or the State Government for the same purpose.; The applicant belonging to special categories must produce a certified copy of the caste/community certificate issued by the competent authority.; The applicant, if applying as an institution, must submit a certified copy of the bylaws wherever applicable.; The applicant must ensure that the project cost includes capital expenditure such as building and machinery.; The applicant may include one cycle of working capital in the project proposal, but it will not be considered for subsidy. The loan for working capital will only be sanctioned and released after the unit is set up, and the working capital must not exceed 25% of the total project cost.; The applicant, if already owning a work shed, will have the cost of only the required machinery considered as the project cost under the scheme.; Special focus on SC/ST and beneficiaries from the North Eastern Region (NER).; The scheme encourages women and youth participation in rural areas.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Is there any age limit to apply under Coir Udyami Yojana?

The applicant must be at least 18 years of age to be eligible for the scheme.

Who monitors the implementation of the scheme?

The Coir Board, its regional offices, and the concerned bank jointly monitor implementation and verify the physical setup of units.

What are the financial benefits under this scheme?

- Beneficiary contribution: 5% of the project cost- Bank credit: 55%- Subsidy: 40% (on project cost excluding working capital)- Working capital: Not eligible for subsidy and must not exceed 25% of the project cost.

What is the role of the Regional Level Selection Committee?

The committee evaluates applications and recommends eligible cases to banks for further processing.

What documents are required for applying?

Documents include a project report, ID proof, title deed, machinery invoice, DIC certificate, and others as listed in the guidelines.

Can I apply if I already received a subsidy from another government scheme?

No, beneficiaries who have availed similar subsidies under any Central or State Government schemes are not eligible.

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

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

Are there any preferences for SC/ST or North East Region applicants?

Yes, the scheme encourages participation from SC/ST candidates and those from the North Eastern Region.

What are Mode of Disbursement ?

- The bank releases the term loan after receiving the Margin Money (subsidy) from the Coir Board. | - Subsidy kept as Term Deposit Receipt (TDR) for 2 years. | - After 2 years, the subsidy is credited to the beneficiary’s loan account.

Is the subsidy given before or after setting up the unit?

The subsidy is released after loan disbursement and is held as a Term Deposit Receipt for 2 years.