The Coir Udyami Yojana ( CUY) is an implementation by the Coir Board and aims at setting up coir units with a project cost up to Rs. 10 Lakh plus one cycle for working capital which shall not exceed 25% of the project cost. Coir is essentially a fiber from the outer husk of the coconut which is used in the manufacture of ropes, matting, and potting compost. It is a stringy material found between the hard, inner shell and the external layer of the coconut. It is actually a credit-linked subsidy scheme for setting up coir units. Working capital is not considered here for subsidy.
Some objectives of the Scheme
- To provide backward/ forward linkages who have been given assistance in form of unitholders under the Scheme.
- To modernize and help in the technological advancement of the Coir Industry by the adoption of modern technology in production, refining, and processing of coir as a raw material and coir products.
- To provide enough training to the youth of rural areas of the states that produce coconut with a focus on motivating them to the coir sector.
- To provide updates to the production and processing technology for the improvement of quality, productivity, and diversification of the product.
- To improve the socio-economic conditions of the workers/ producers engaged in the coir industry.
- Employment in rural areas will be aimed to increase in the states that focus on coconut production.
- Contribute to the inclusive growth of vulnerable sections of beneficiaries, especially those that belong to Scheduled Caste (SC), Scheduled Tribes (ST), North Eastern Region ( NER).
Funding and financial assistance
Under the Coir Udyami Yojana Scheme, all-inclusive marketing Support Assistance will be provided to the beneficiaries for the following interventions. The list of such instances are listed below
- For the hiring of display and showroom spaces
- For the reimbursement of the expenditure that has been incurred for the participation in fairs that are organized or exhibitions.
- To reimburse the salary of personnel employed in the Consortium
- To provide financial support and assistance for the establishment of the Marketing Consortium Of CUY beneficiaries.
40% of the project cost under this scheme will be provided as a pattern of assistance by the Government of India subsidy, 55% of it is a loan from the bank and 5% is a beneficiary contribution. It is to be noted that the subsidy will be computed excluding the working capital component.
The assistance under the Scheme is available for projects for coir fiber production, yarn only. All beneficiaries must be Indian citizens above the age of 18 and there shall be no income ceiling for the assistance for setting up the project under Coir Udyami Yojana.
The application procedure under this scheme includes the copy of Title Deep that will provide set up space, coir industry proof, list of proposed types of machinery to be installed, training proof from Coir Board, the project profile, and the Industrial Establishment Certificate issued by the DIC. The application form needs to be filled out and submitted directly to the Coir Board Field Offices or through the DICs.