Coir Vikas Yojana- Coir Industry Technology Upgradation Scheme

Coir Vikas Yojana - Coir Industry Technology Upgradation Scheme (CITUS) is a central scheme run by the Ministry of Micro, Small and Medium Enterprises through the Coir Board, Kochi. It gives money support to coir units for buying modern machinery, setting up new processing plants, or upgrading existing ones. The scheme offers a subsidy of 25% on the cost of eligible plant and machinery, up to a maximum of ₹2.50 crore per project, and the amount is paid directly to the beneficiary through DBT.

Coir Vikas Yojana is the umbrella scheme of the Coir Board, and Coir Industry Technology Upgradation Scheme is one of its main components. Registration and applications for this scheme are done online through the official Coir Board website, and the scheme continues to accept applications in the 2026-27 financial year.

Coir Vikas Yojana - Coir Industry Technology Upgradation Scheme

This scheme focuses on making the coir sector more modern and competitive. It helps entrepreneurs, cooperative societies, and industrial units adopt advanced machinery that improves productivity and keeps the industry environmentally friendly. The Coir Board works as the nodal agency, and technical guidance comes from the Central Coir Research Institute (CCRI), Kalavoor, and the Central Institute of Coir Technology (CICT), Bangalore.

The scheme works toward a set of clear goals:

• Improve the productivity and quality of coir products by supporting modern infrastructure.
• Help set up brand new, modern coir processing units across the country.
• Expand the coir industry into new regions to balance growth across states.
• Encourage better use of existing coir raw materials.
• Create new jobs, with a special focus on helping women in rural communities.
• Modernize existing coir units so they stay relevant in the market.
• Support the use of software and information technology like ERP in daily business.
• Promote eco-friendly and pollution-free manufacturing methods.

Key Information

Benefits

Eligible units such as SHGs, associations, and registered enterprises can get significant money support to build a new unit or upgrade an existing one for high-value coir goods. The assistance is paid as a reimbursement after the machinery is installed and production starts.

Machinery can be bought through bank loans, leasing companies, or own business capital. Individual enterprises cannot apply on their own; they must apply as part of a larger business entity. The unit must also stay within the investment limits set for medium-scale enterprises under the MSME Act.

Eligibility

To qualify, the coir unit must be officially registered. Eligible applicants include individuals, partnership firms, SHGs, and cooperatives in the private or public sector. Those starting a new coir processing venture or upgrading an existing unit for value-added products can apply.

• The coir production unit must be registered with the Coir Board under the Coir Industry (Registration) Rules, 2008, and hold a valid Udyog Aadhaar.
• For modernization, the coir unit must have been running successfully for at least 5 years.
• The applicant must not have claimed other Central Government subsidies such as PMEGP, CUY, or DPI for the same project or machinery.
• All installed equipment and machinery must meet the standards of the Bureau of Indian Standards (BIS).
• A five-member Technical Committee reviews and approves machinery pricing from time to time.
• A performance guarantee of at least two years is required from the machinery manufacturer.

For example, if Priya runs a small coir factory and wants to buy new automated spinning machines, she must make sure her factory has a Udyog Aadhaar and that she has not taken a subsidy for those machines earlier. Once she provides her invoices and proof of operational history, she becomes eligible for the subsidy.

Application Process

Applications are submitted online through the official Coir Board website. Keeping the documents accurate and ready helps avoid delays in processing.

STEP 1 - Prepare a detailed project report (DPR) and submit it online through the official Coir Board website.

STEP 2 - Wait for the Coir Board to give In-Principle Approval (IPA) for the project.

STEP 3 - Purchase and install the machinery as approved in the project report.

STEP 4 - Obtain the Udyog Aadhaar and make sure the unit is registered with the Coir Board.

STEP 5 - Once production begins, submit the subsidy application within one year of starting operations.

For a new login, visit the official website, sign up with Aadhaar, email, and mobile number, choose a secret question, and create a username. Confirm the details to receive credentials by email or SMS, then log in to the dashboard, update the password, and upload the DPR to get a unique registration number. Application progress can be tracked by logging into the official portal.

Documents

Keep the following documents ready while preparing the application:

1. Udyog Aadhaar number and proof of Coir Board registration.
2. PAN and Aadhaar number of the business owner or authorized signatory.
3. A detailed project report (DPR).
4. Legal entity proofs such as partnership deed, company registration certificate, or NGO/SHG registration certificate.
5. Attested copies of invoices, payment receipts, and machinery performance guarantees.
6. Bank account details along with sanction letters if a loan was taken.
7. A certificate of installation from a Chartered Accountant.
8. An undertaking that no other subsidy has been claimed for this machinery.

If the original title documents are held by a bank, submit copies attested by the bank manager.

References

• Official Website of Coir Board
• Coir Board Schemes Page

FAQ's

What is Coir Industry Technology Upgradation Scheme?

It is a component of Coir Vikas Yojana launched by the Ministry of MSME to help coir production units get modern technology for higher productivity and quality.

What is the objective of this scheme?

The goal is to modernize existing units, support new processing plants, promote eco-friendly production, and generate rural employment.

Which is the implementing agency?

The Coir Board in Kochi is the nodal agency for running this scheme.

Who is eligible for assistance?

Entrepreneurs, SHGs, and cooperatives involved in value-added coir production can apply if they are setting up a new unit or upgrading an existing one.

Is Coir Board registration mandatory?

Yes, all units must be registered with the Coir Board under the 2008 Rules and hold a valid Udyog Aadhaar.

What is the amount of financial assistance?

A subsidy of 25% on the cost of eligible plant and machinery is given, up to a maximum of ₹2.50 crore per project.

How is the subsidy paid?

The amount is paid directly to the beneficiary through the PFMS/DBT system as a reimbursement after the machinery is installed.

Are there any ineligible candidates?

Those who have already claimed other Central Government subsidies like PMEGP or TUF for the same machinery are not eligible.

How can I apply?

Prepare a project report and submit it through the official Coir Board website.