Coir Udyami Yojana

Description
Coir Udyami Yojana is a credit-linked subsidy scheme for setting up coir units with a project cost up to ₹10,00,000/- plus one cycle of working capital, which shall not exceed 25% of the project cost. Working capital will not be considered for subsidy. Coir Udyami Yojana is a Central Sector Scheme to be administered by the Ministry of Micro, Small and Medium Enterprises. The Scheme will be implemented by the Coir Board a statutory organization under the Ministry of MSME, as the Nodal Agency at the national level. Financial Institutions providing loan under CUY: - All the Scheduled Commercial Banks listed in the 2nd schedule of the RBI Act - All Regional Rural Banks - Co-operative Banks that are Member Lending Institutions MLIs of the Credit Guarantee Trust Fund for MSME, as well as through SC/ST/OBC Finance and Development Corporations.

Exclusions
• The units that have already availed Govt. subsidy under any other Scheme of the Govt. of India or the State Govt. for the same purpose are not eligible to claim a subsidy under the scheme.
• Working capital will not be considered for subsidy.
• Cases of inflated costing on machinery/building, and other elements of a project to avail a higher amount of subsidy will not be allowed, and such applications will be summarily rejected, or the committee will have the authority to consider such applications by reducing the cost of the project.

Benefits
• Beneficiary’s Contribution (of Project Cost): 5%
• Bank Credit: 55%
• Rate of Subsidy (of project cost): 40%

Eligibility Criteria
1. > **Eligibility conditions of the Beneficiaries:**
2. - The applicant must be an individual above 18 years of age with Indian Citizenship.
3. - The applicant will not be subject to any income ceiling for receiving assistance under the scheme.
4. - The applicant must set up a project related to the production of coir fibre, yarn, or products under the coir sector.
5. - 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.
6. - 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.
7. > **Other eligibility conditions:**
8. - The applicant belonging to special categories must produce a certified copy of the caste/community certificate issued by the competent authority.
9. - The applicant, if applying as an institution, must submit a certified copy of the bylaws wherever applicable.
10. - The applicant must ensure that the project cost includes capital expenditure such as building and machinery.
11. - 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.
12. - 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.
13. > **Note :**
14. - Special focus on SC/ST and beneficiaries from the North Eastern Region (NER).
15. - The scheme encourages women and youth participation in rural areas.
16. - Only one person from one family is eligible for obtaining financial assistance for setting up of projects under Coir Udyami Yojana. The ‘family’ includes self and spouse.
17. <br>

Required Documents
• Prescribed Application Form for Scheme assistance
• Copy of the Title Deed of the property on which the unit is proposed to be set up/already located
• Proof of Coir Industry experience
• Proof of training availed from the Coir Board
• Machinery is proposed to be purchased along with the Invoice
• Industrial Establishment Certificate issued by the District Industries Centre (DIC)
• Plan & Estimate for the construction of a workshed duly certified by a Chartered Engineer
• Project Profile of the proposed project
• In case of SC/ST, a copy of the Caste Certificate
• Any other supporting documents

Frequently Asked Questions
Q: Is there any age limit to apply under "Coir Udyami Yojana"?
A: The applicant must be at least 18 years of age to be eligible for the scheme.

Q: Who monitors the implementation of the scheme?
A: The Coir Board, its regional offices, and the concerned bank jointly monitor implementation and verify the physical setup of units.

Q: What are the financial benefits under this scheme?
A: - **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.

Q: What is the role of the Regional Level Selection Committee?
A: The committee evaluates applications and recommends eligible cases to banks for further processing.

Q: What documents are required for applying?
A: Documents include a project report, ID proof, title deed, machinery invoice, DIC certificate, and others as listed in the guidelines.

Q: Can I apply if I already received a subsidy from another government scheme?
A: No, beneficiaries who have availed similar subsidies under any Central or State Government schemes are not eligible.

Q: Can I sell or transfer the unit or machinery after receiving the subsidy?
A: No, machinery and assets created under the scheme cannot be sold or transferred without permission from the Coir Board.

Q: Are there any preferences for SC/ST or North East Region applicants?
A: Yes, the scheme encourages participation from SC/ST candidates and those from the North Eastern Region.

Q: What are Mode of Disbursement ?
A: - 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.

Q: Is the subsidy given before or after setting up the unit?
A: The subsidy is released after loan disbursement and is held as a Term Deposit Receipt for 2 years.