Coir Udyami Yojana

Coir Udyami Yojana is a credit-linked subsidy scheme run by the Coir Board under the Ministry of MSME, Government of India. Under this scheme, people can set up their own coir units and get a 40% subsidy on the project cost. The scheme is still running in 2026 and fresh applications are being accepted.

The total project cost can go up to ₹10 lakh, plus one cycle of working capital. Working capital cannot cross 25% of the project cost and it is not counted while calculating the subsidy. Banks like scheduled commercial banks, regional rural banks and cooperative banks that are members of the Credit Guarantee Trust Fund for MSME take part in this scheme.

Coir Udyami Yojana - Introduction

Coir Udyami Yojana was launched to modernize the coir industry and create long-term income opportunities in rural areas. It gives easy to access credit-linked financial support to set up a coir unit. This is a central sector scheme run by the Coir Board, which works under the Ministry of Micro, Small and Medium Enterprises. Similar help for the coir sector is also covered under the related Development of Coir Industries scheme on this website.

Before applying, every selected applicant has to complete the 5-day Entrepreneurship Development Programme (EDP) arranged by the Coir Board. After that, the Regional Level Selection Committee checks the proposal and sends the eligible projects to the bank for the loan process.

Key Information

Benefits

This scheme gives a strong financial base for a new coir business. The project cost is shared in the following way:

The bank will approve 95% of the total project cost and pay the funds in installments. Working capital can be added in the proposal, but it is not counted while calculating the subsidy.

Eligibility

Anyone who meets the conditions given below can apply under Coir Udyami Yojana:

• Must be an Indian citizen and at least 18 years old.
• There is no income ceiling, so people from many backgrounds can apply.
• The project must focus on making coir fibre, yarn or related products.
• Can apply as an individual, a company, a self-help group, an NGO, a registered society or a charitable trust.
• Should not have received a government subsidy for the same project earlier.

For example, if a young person wants to start a coir unit, the project costs must be clearly documented and they must not have taken any prior government grant for the same work.

Exclusions

Subsidy cannot be claimed if the applicant already got one from any other Central or State Government scheme for the same purpose. Working capital is not part of the subsidy calculation. If project costs are inflated for machinery or building construction, the committee will reject the application.

Application Process

Follow these steps to apply under the scheme:

STEP 1 - Visit the official Coir Board website or the nearest Coir Board Field Office to get the application form.

STEP 2 - Fill the prescribed application form and attach all supporting documents.

STEP 3 - Submit the form to the nearest Coir Board Field Office or through the District Industries Centre (DIC).

STEP 4 - Complete the required 5-day Entrepreneurship Development Programme (EDP). Training support for the coir sector is also available under the Training in Coir Component of the Development of Coir Scheme.

STEP 5 - Wait for the Regional Level Selection Committee to check and approve the proposal.

STEP 6 - After committee approval, the bank will do its own check.

STEP 7 - Deposit the 5% beneficiary contribution within 30 days of bank approval.

STEP 8 - The Coir Board then deposits the 40% subsidy and the bank releases the term loan for project completion.

Documents

Keep these documents ready before applying:

• Prescribed application form for scheme support.
• Copy of the title deed for the proposed or existing unit property.
• Proof of experience in the coir industry.
• Certificate showing completion of training from the Coir Board.
• Invoices for the machinery to be purchased.
• Industrial Establishment Certificate from the local District Industries Centre (DIC).
• Detailed plan and estimate for the workshed, certified by a Chartered Engineer.
• Detailed project profile.
• Caste certificate for SC/ST applicants.

References

Official scheme details on the MSME website

Official Operational Guidelines

Coir Board official website

FAQ's

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

Yes, applicants must be at least 18 years old to apply.

Who monitors the rollout of the scheme?

The Coir Board, along with its regional offices and the lending bank, keeps track of the rollout and checks the standard of the unit set up.

What financial support is given under this scheme?

Applicants get a 40% subsidy on the project cost, excluding working capital. Their own share is 5% and bank credit covers 55% of the project.

What is the role of the Regional Level Selection Committee?

This committee checks each application and recommends eligible projects to the bank for the next stage.

What documents are required to apply?

Required documents include the project report, identity proof, title deed, machinery invoices and the DIC certificate.

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

No. If a similar subsidy was already received from a Central or State scheme, the applicant is not eligible under this scheme.

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

No. Assets created under the scheme cannot be sold or transferred without prior written permission from the Coir Board.

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

Yes, the scheme gives special focus to helping SC/ST applicants and people from the North Eastern Region.

How is the subsidy paid?

The bank releases the term loan once the Coir Board deposits the subsidy. The subsidy is kept as a Term Deposit Receipt (TDR) for 2 years before it is credited to the loan account.

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

The subsidy is paid after the loan is given and is held as a TDR for the first 2 years.