A Complete Guide on Coir Udyami Yojana 2022

The Union Ministry of Micro, Small, and Medium Enterprises (MSME) approved the continuation of the Coir Udyami Yojana (CUY) – a credit-linked subsidy scheme to facilitate the sustainable development of the Coir Industry in the country.

Earlier, the Scheme was called Rejunevation, Modernization, and Technology Upgradation of the Coir Industry.

The Coir Udyami Yojana is a financial support initiative for micro and small-scale enterprises in the coir sector of India. The Scheme is expected to create more employment opportunities, especially for women and people in weaker sections of society in rural areas.

This article will cover all the details about the Scheme, like types of assistance, eligibility criteria, registration process, and scheme benefits and highlights.

Let’s start.

What is Coir Udyami Yojana?

As mentioned above, Coir Udyami Yojana is a credit-linked subsidy scheme launched to help entrepreneurs set up coir manufacturing units with a project cost of up to Rs. 10 lakhs and working capital of 25% (maximum limit) of the total project cost.

It is a Central Sector Scheme implemented by the Coir Board under the Ministry of Micro, Small, and Medium Enterprises (MSME) as the Nodal Agency at the all-India level. At the State level, the Scheme is implemented by the Board’s Regional and Sub-regional offices, Coir Project offices, banks, and other such offices.

Under the Scheme, financial assistance is provided to eligible enterprises for setting up new units or expanding existing units. The Scheme also provides for infrastructure development and capacity building of coir units. The credit subsidy will be disbursed to the eligible beneficiaries through banks.

The Coir Board of India and other implementing agencies will collaborate with NGOs, Local self-governments like panchayats, and other autonomous bodies to identify beneficiaries and areas of specific viable projects and provide skill development and entrepreneurial development training.

The objective of the Scheme:

The key objective of the Scheme is

1. To adopt modern techniques in producing and processing coir and coir-based products.
2. To upgrade the existing facility in terms of production and processing technology to improve productivity, product diversification, and quality.
3. To increase the efficiency of production to enhance the income earning capacity of the workers reneged in this sector.
4. To improve coconut husk usage to increase the production of coir fiber and coir products.
5. To generate more employment opportunities in the rural areas of the coconut production states and union territories.
6. Improving the employment scope for women in the rural sector will empower them.
7. To improve the socio-economic conditions of both workers and producers engaged in the coir industry.
8. For inclusive growth of people from vulnerable sections of the society belonging to scheduled castes and scheduled tribes and people from the Northeastern region (NER)
9. To provide sufficient training to the interested youths of the coconut-producing states with an eye on attracting them to the coir sector.
10. To provide forward and backward linkages to the coir industry owners under this Scheme.

Details about the Nature of Financial Assitance:

• Under this Scheme, financial assistance is given to eligible entrepreneurs with a total project cost of up to Rs.10 lakhs, along with one cycle of business working capital which doesn’t exceed the 25% of the project cost.

In this, the Working capital is NOT considered part of the subsidy provided under this Scheme. It means Working capital is exclusive of the proposed Rs. 10 lakh limit.

Here the credit-linked subsidy is split up:

• Entrepreneur/ Beneficiary’s Contribution — 5% of the Project Cost
• Bank Credit — 55%
• Percentage of Subsidy — 40% of the Project Cost

Eligibility Criteria for Coir Udyami Yojana:

To be eligible for the Coir Udyami Yojana, the following criteria must be met:

• The applicant must be a natural person of Indian nationality residing in India.
• The applicant must be at least 18 years of age.
• There is no income ceiling for financial assistance under this Scheme for setting up Coir Unit in India.
• This Scheme is only dedicated to projects working to produce Coir-based yarns, fibers, products, etc.
• Type of Beneficaires under this Scheme: Individual persons, Companies, NGOs, Self Help Groups (SHG), All institutions registered under Production Co-operative Societies, Societies Registration Act 1860, Joint Liability Groups, and Charitable Trust.

NOTE: 
The applicant of Coir Udyami Yojana must not have availed of any other financial assistance under any different scheme of the Government of India for the same purpose or setting up a coir unit.

Key Points to Note:

• The total project cost will include building and machinery as the total capital expenditure.
• The applicant of this Scheme can apply for a subsidy, including the working capital in the project proposal. The bank will disburse the approved loan for working capital only after setting up the unit. Under any circumstances, the working capital included in the proposed project shall not exceed the prescribed limit of more than 25% of the project cost.
• Only one family member can avail of the credit-linked subsidy under the Coir Udyami Yojana scheme. In this, the term family includes the applicant self and the spouse.

Financial Institutions For this Scheme:

• All Regional Rural Banks
• All scheduled banks are listed in the second schedule of the RBI Act.
• All Co-operatives under Member Lending Institutions (MLI) of Credit Guarantee Trust Fund of MSMEs and SC/ST, OBC Finance and Development cooperations.

Coir Udyami Yojana – Rate of Interest and Repayment Schedule 
Under this scheme, the bank will charge the interest rate at par with the current base rate. As any scheduled bank or financial institution prescribes, the loan repayment schedule should be at most seven years after the initial moratorium. It is planned to enable the benefiting entrepreneur to complete this project.

The Credit Guarantee Trust Fund Scheme of the Ministry of MSME would cover the loan approved by the bank under this scheme. The bank has to approve the loan without asking for collateral or any third-party guarantee. Under no circumstances should the bank from the Beneficiary insist upon such a guarantee.

List of Documents To Submit By The Applicant:

1. Submit the prescribed application form for Scheme assistance.
2. A copy of title deed on which the unit is to be set up or already located.
3. Proof of Experience in the Coir Industry
4. Proof of training session availed from the Coir Board.
5. Details of the coir machinery proposed to be purchased along with the Invoice.
6. Certificate of Industry Establishment given by the DIC.
7. Detailed plan and estimate for the construction of workshed duly attested by the Chartered Engineer.
8. Complete detail of the proposed project.
9. Submit the SC/ST caste certificate if the applicant is in the vulnerable section.
10. Other supporting documents.

Criteria For Selection of Beneficiary:

1. Beneficiaries of the scheme will be selected based on a “first-come-first-served” basis.
2. To be eligible for this scheme, all applicants must undergo Entrepreneurship Development Programme (EDP) mandatorily. The applicant must have undergone EDP training before applying for Coir Udyami Yojana or after submitting the application to the Regional Level Selection Committee but before the committee recommending the applicant before the Regional Level Selection Committee.
3. The bank will scrutinize and decide based on the project’s availability. The banks should refrain from submitting the collateral or third-party guarantee as the project is covered under Credit Guarantee Trust Fund (CGTF) Scheme.
4. If the bank rejects the applicant, the reason for rejection has to be furnished by the bank to the concerned applicant and the Coir Board field office.

Requirement For the Machinery Purchased Under this Scheme:

The Coir machinery and accessories purchased by the Beneficiary from the manufacturer must comply with all the standards set up by the Cori Board from time to time. 
As many coir-based businesses are MSMEs, the frequent power shortage will disable the entrepreneur from utilizing the purchased machinery fully. So, they can buy a power generator with reasonable capacity.

How to Apply for the Scheme?

STAGE 1:
Start with New Login Registration:

1. Click on the link “New Login Registration” in the Login.
2. Enter your Name, PAN Number, e-mail-id, and Mobile Phone Number as per the format given on the screen.
3. Once entered, the PAN number, email-id, and Mobile Phone Number cannot be changed later in the application form.
4. Now you should select a secret question from the Drop Down menu and type the answer in the next Column. Note down the secret question and the answer for future reference. They are used to retrieve passwords in case the password is forgotten.
5. You should now choose your User Name (Please refer to the User Name Policy provided).
6. Enter the Given Security PIN displayed on the screen.
7. You can now finalize the above details by clicking the CONFIRM Button. Please note that the email-id and the Mobile Number provided should be your own, as all correspondences in the future will be through email and SMS.
8. You will receive your username and password by email and SMS.

STAGE 2:
Submit Beneficiary Registration ( Part-A) 
In the login section of the login page, type your user name and password received through email/SMS and click “Sign In.”
Immediately you will be asked to change your password. Here you should set a new password per the site’s password policy and confirm. You will be automatically requested to re-login with new credentials.
After successful Login, You will be redirected to your Home Page.
An Application for Coir Sector Beneficiary Scheme contains two Parts. Part -A consists of common details related to the Beneficiary and is called the Beneficiary Registration form. PART-A is common to all Coir Beneficiary schemes.
Each Beneficiary must complete the Beneficiary Registration by selecting the Menu Item Beneficiary Registration /Registration Part-A( Give the Consortium registration details in Part-A).
After completing Beneficiary registration ( Part-A), the Beneficiary will get a beneficiary registration Number.

Stage-3:
Select the application from the consortium menu item and submit the application

1. Select the menu item consortium from the left side menu and select the appropriate application and submit.
2. For example, if you want to apply for Assistance in establishing a marketing consortium, do the following steps:
3. Log in to the system with your Username and Password.
4. On Successful Login, You will get the Home Page of Airservices.
5. Select Registration Part-A by expanding the Beneficiary Registration Link from the Left side Menu.
6. Enter consortium name & address details carefully and Submit the Form
7. You will get a beneficiary registration Number.
8. Select the item establishing the marketing consortium by expanding the Link Consortium. Give details and submit the form.

You will receive the application registration Number.

3. As part of submitting the Online application, You need to scan and upload the following documents and the application at the appropriate places as indicated.

Beneficiary Registration ( Part-A) 

• Photograph – The photograph should be 3.5 cm width x 4.5 cm height or 132-pixel width X 170-pixel height with a file size between 4 KB and 100 KB. JPG formats only will be accepted.
• PAN Card Copy
• MSME Registration Certificate.
• Consortium Registration Certificate

Consortium ( Part-B) 
Scan and upload all relevant documents and bills as prescribed.
Note: Except for Photograph, all the documents should be scanned in pdf format, and the size should be between 10KB and 300 KB. 
To upload a file, first, click on the browse button and select the file. Then click on the Upload document button.

Stage – 4: Application Status
You can check and verify the status of the application on the website by Login to your Home Page with your username and password.

Beneficiary / Applicant should visit respective home pages of www.coirservices.gov.in for the latest developments against your application.

Benefits of the Coir Udyami Yojana Scheme

The scheme was launched to promote the coir industry and provide employment to people in rural areas. Under the Coir Udyami Yojana scheme, financial assistance is provided to the registered units for purchasing machinery, equipment, etc.

The benefits of the scheme are:

1. It helps promote the coir industry and employs people in rural areas.

2. It provides financial assistance to the registered units to purchase machinery, equipment, etc.

3. It helps improve the quality of coir products and makes them competitive in the international market.

4. It assists in capacity building of the coir industry and helps in technology upgradation.