Coir Udyami Yojana – Benefits, Eligibility & Application

February 15, 2025

11 min read

About Coir Udyami Yojana (CUY)

The Coir Udyami Yojana provides welfare activities towards raw-material utilization, trade-related services, training and development of skill, creates entrepreneurship and employment opportunities and development, upbringing, and growth of domestic and export markets and much more. The Components under this scheme are:

DPI – Development of Production Infrastructure
Welfare Measure under the Group Personal Accident Insurance Scheme
EMP – Export Market Promotion
TIRFS – Trade and Industry Related Functional Support
Skill Upgradation and MCY – Mahila Coir Yojana
DMP – Domestic Market Promotion

Schemes under Coir Vikas Yojana (CUY)

Let us understand these schemes in detail:

Name of the Scheme	Description	Nature of Assistance	Who can Apply	How to Apply
CITUS – Coir Industry Technology Upgradation Scheme	Assistance to entrepreneurs for procuring upgraded plant and machinery and modern equipment to go for a larger investment in their respective firms. The maximum allowance gives are Rs 2.5 crores per coir project.	25% of the cost of Plant and Machinery for modernisation, establishing a new unit or upgradation	Coir productions, manufacturing units, newly established firms registered under the Coir Industry (Registration) Rules, 2008 ad who possess a Udyog Aadhar	Online applications
S&T – Science and Technology for Coir	Extensions of service and testing services. R and D done through twin departments – Central Institute of Coir Technology in Bangalore and Central Coir Research Institute, Kalavoor	Technology transfer, testing and service and incubation services	Coir workers, entrepreneurs and manufacturers	They need to contact the research centre for all services.
Skill Upgradation and MCY – Mahila Coir Yojana	Training and value addition to potential workers, coir artisans and entrepreneurs through DC and NCT.	Stipend amount per trainee is Rs. 3000. The trainer’s honorarium is fixed to Rs. 15000.Rs. 40 per head per month is paid out to the agency for meeting overhead costs of services.	Maximum project cost of Rs. 25 lakhs for coir artisans, under PMEGP scheme for setting up new units.	officer-in-charge of the Regional Extension Centre will select trainees which will be sponsored and recommended by NGOs, Cooperatives, trade associations, unit owners and industries departments.
EMP – Export Market Promotion	This is formulated to improve the export quality, performance and market. Includes sponsorship, promotional, seminars, conferences, Research and development	Publicity, participation in fairs and exhibitions, delegation, consultation, coir industry awards and recognition, external market development, and information sourcing	Manufacturers, entrepreneurs and the exporters of Coir	Application form can be downloaded from the official website or he head office of the Coir Board.
DMP – Domestic Market Promotion	Under Section 10(1) of Coir Industry Act 1953, it is for expanding the products and the domestic market. The activities comprise publicity, marketing, advertising, participation exhibitions and fairs, construction, decoration and renovation of the market.	Provides financial assistance, which is given at 10% of their annual sales turnover. Coir products includes (for the preceding 3 years) – Coir fibre,block, organic manure, mats, yarn, matting, bags, umbrella, ornaments, handicrafts pith, and other innovative products. Assistance to be shared on 1:1 with central or state governments.	Central, Primary and Apex Co-operative Societies, Public Sector Enterprises, franchisees by Coir Board and Showroom Depots	MDA application from needs to be filled which can be retrieved from the official website or the head office.
TIRFS – Trade and Industry Related Functional Support	For this highly competitive sector, this scheme introduces an upgraded and expert IT related management information system	Comprises accessible export data, quantum of export to each country and name of importing countries. This is to gauge better technological and modern knowledge and expertise.	Stakeholders, Board members, coir workers, manufacturers or employees	To participate in the HRD programs initiated, the people can contact the Head Office and Regional Offices of the board.
PMSBY – Pradhan Mantri Suraksha Bima Yojana	Implements Coir Workers Insurance scheme under Group Personal Accident covering against accidental death, permanent total disability and permanent partial disability	For one year and renewable. Accidental coverage for death and disability provided	Coir workers who are self-employed or employed under SFURTI coir clusters, federations, Corporations, co-operative societies, PSUs, Welfare Fund Boards.	Anyone between 18-70 years of age can apply. He must have Aadhar linked Savings account.

The Coir Board

This is a subsidy scheme that is credit-linked and sets up coir units with an anticipated cost of Rs, 10 lakhs + another cycle of working capital that does not exceed 25% of the project’s cost. Subsidy is not granted on working capital. Under the ambit of the Ministry of MSME, the main aim of Coir Udyami Yojana is to maintain sustainable development of the Coir Industry in India.

Eligibility Criteria for Coir Udyami Yojana (CUY)

Age Criteria	Indian Citizen above 18 years of age
Income Ceiling	No specific income ceiling capped
Scope of Eligible Project	Production of coir yarn, fiber, and finished products
Eligible Applicants	• Individual (Only one person per family) • NGO (Non-Government Organization) • Self Help Group • Registered Society under Societies Registration Act 1860 • Charitable Trust • Joint Liability Group
Project Profile	If the project is already under the subsidy of any other scheme launched by the central or state government, then the project will not be eligible for CUY
Nature of the Scheme	• Maximum cost – 10 lakhs + working capital, that should not exceed 25% of the cost of the project. • Beneficiary’s contribution 5% of the project cost • Bank credit 55%. • Rate of Subsidy 40% of the project
How to Apply	The applicant can apply online or the applicants can be filled at the Panchayati Raj Institutions, Coir Board Offices, District Industries Centres, and the Nodal Agencies approved by the Board and have to be directly submitted to through the DICs or to the COIR Board Field offices.
Coverage of Loan	• Capital expenditure • Building • Machinery • Working capital not considered • If work shed is already available, then it is not considered for the loan
Maximum Repayment Period	Maximum up to 7 Years
Collateral/Security/Guarantor	Not Applicable
Credit Guarantee	Loan under Coir Udyami Yojana is covered through the CGTMSE Scheme under the Ministry of MSME

Documents Required for Coir Udyami Yojana (CUY)

KYC documents of individual applicant – ID and Address proof
Registration documents in case of non-individual applicants
The certified copy of the by-laws of the organization needs to be attached (not for individuals)
Cast certificate to avail benefits under special cast applicants
Detailed project cost, capital expenditure, machinery and building
Detailed working capital cycle and its requirement (if the applicant wants to apply for the working capital loan without subsidy)
Property documents – location for the coir manufacturing unit (proposed)
Certificate of Entrepreneurship Development Program training
Proof of coir industry experience
Plan and Estimate of civil construction work certified by the Charter Engineer
DOC issues Industrial establishment certificate

Benefits of Coir Udyami Yojana (CUY)

Maximum cost – Rs. 10 lakhs which includes working capital not exceeding 25% of the total cost of the project.
Beneficiary’s contribution 5% of the project cost
Bank credit 55%.
Rate of Subsidy 40% of the project
The project cost covers every kind of capital purchase except for the working capital.
Individuals, Companies, Registered Societies, NGOs and other Self-Help Group, Production Co-Operative Societies, and other Charitable Trusts can apply for this scheme
Skill Upgradation
Maintaining the applications list
Evaluation and monitoring
Development of production infrastructure scheme
Establishes new state-of-the-art Coir Processing Units.
Helps in better usage of existing raw materials.
Helps women get better employment opportunities especially in rural areas
Updates existing coir units.
Helps in the production of high-value products
Helps in the adoption of eco-friendly techniques
Improves quality and productivity
Modernizing the infrastructure facilities of the production units.
Developing the industry which has potential.
Introduces new generation entrepreneurs into the industry.
Promotes information technology in the industry.
Makes Coir Industry more competitive
Keeps Coir Industry pollution-free.

How to Apply for the Coir Udyami Yojana (CUY)

The Coir Udyami Yojana application form can be availed from any of the below mentioned offices:

Coir Board Offices
Coir Project Offices
Nodal offices approved by the coir board
District Industrial Center
Panchayati Raj Institutions
Coir Board Website (Direct Download)

The application form along with appropriate documents should be submitted to the Coir Board field offices or DICs – District Industrial Centres

Steps to apply for CUY scheme online

Visit the official website http://coirservices.gov.in/ or https://www.startupindia.gov.in/content/sih/en/government-schemes/coir_udyami_yojana.html.
Choose the scheme and click on ‘Apply Online’
The applicant needs to sign in using his login details if he is a registered user. If he is not a registered user then he needs to click on ‘New Login Registration’
He needs to register by entering his basic details like full name, mobile number, email ID, Aadhar number, and security question and username as per preference
Click on ‘Confirm’ to complete the registration process.

Coir Udyami Yojana (CUY) FAQs:

1. What is the Rate of Interest and Repayment Schedule under CUY Scheme?

Conditions are: • The Rate of interest chargeable is equal to the base rate. • Schedule for Repayment must not be more than 7 years after the basic (first) moratorium • The loan would be covered under Credit Guarantee Trust Fund Scheme • The guarantee fee for the coverage will be borne by the beneficiary or the Bank. • The term loan would be without collateral

2. Which are the Financial Institutions which are entitled to provide CUY Scheme Assistance?

They are: • All Commercial Banks (scheduled) which are listed in the second schedule of the RBI Act • All Regional Rural Banks • Co-operative Banks who are Member Lending Institutions (MLIs) of the Credit Guarantee Trust Fund for MSME • SC/ST/OBC Finance and Development Corporations.

3. How is the marketing of coir products done which are produced under Coir Udyami Yojana?

The government has an allocated budget for the widespread awareness of coir products. The budget includes exhibitions to market the coir products and the board supports the applicant to market the products at reasonable rates.

4. What is the importance of the Entrepreneurship Development Certificate?

It is imperative for each applicant to undergo an EDP – Entrepreneurship Development Program for eligibility under Coir Udyami Yojana. The applicant must show the certificate to the authority before coir board recommends the loan to the bank.

5. How does the Sanction of Applications take place?

After receiving the applications by the Regional Level Selection Committee, the Financing Branch will take the decision for sanctioning the project under CUY Scheme. Once sanctioning order will be issued to the beneficiary, it will be intimated to Filed Offices of the Board from whom the Government subsidy will be availed and to the Coir Board.

6. What are the two schemes that come under development of Khadi, Village and Coir Industries?

The two schemes are: • MPDS – Market Promotion & Development Scheme • SFURTI – Revamped Scheme of Fund for Regeneration of Traditional Industries.

7. What are the objectives of Coir Udyami Yojana?

The objectives are: • Adopting modern technology to modernise the Coir Industry • Upgrading production and processing technology. • Increasing the efficiency and productivity of the workforce. • Growing the generation of coir fibre and goods. • Creating work opportunities in rural areas of the coconut-producing places. • Generating more work opportunities for women. • Developing the socio-economic conditions of workers and producers • Developing vulnerable sections of categories like SCs, STs and NERs. • Training he rural youth of the coconut producing places. • Providing linkages to unitholders under the Coir Udyami Yojana scheme.

8. What is the financial assistance provided under Coir Udyami Yojana?

Financial assistance comprises: • 40% as Government of India subsidy, 55% as loan from Bank and 5% as contribution towards the beneficiary. • Marketing Support Assistance shall be considered. • Establishing Marketing Consortium of CUY beneficiaries. • Conducting fairs or exhibitions. • For paying for showroom spaces. • For disbursement of salary to staff in the Consortium.

9. What are awareness camps that are organised by the Coir Board?

Awareness camps are organised by the Coir Board in the coconut producing states to educate beneficiaries and to expand the Scheme. The awareness camps include men and women, from the coir sector, with focus on OBCs, STs, SCs, other Minorities, Women etc. From the awareness camp the beneficiaries will be short listed by the Coir Board from DICs and State Level organizations and sent for training.

10. How does the physical evidence for Coir UdyamiUnits work?

100% physical verification, in accordance with the prescribed procedures of the General Financial Rules. This will be conducted by the Coir Board through the agencies of professional institutes or State Government. Banks will help the Coir Board to make sure 100% physical verification is done. A suitable proforma is also prepared. Prescribed Quarterly reports will be submitted by Coir Board to the Ministry of MSME.