Coir Udyami Yojana 2026 – 40% Subsidy for Coir Units
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Quick answer
Coir Udyami Yojana is a central sector credit-linked subsidy scheme by the Ministry of MSME to support setting up of coir units. Eligible applicants receive a 40% subsidy on project cost (excluding working capital) while contributing 5% and availing 55% bank credit. Applications are submitted offline to the Coir Board Field Office after completing a 5-day Entrepreneurship Development Programme.
At a glance
| Main benefit | Key Financial Benefits |
| Ministry / department | Ministry Of Micro, Small and Medium Enterprises |
| Level | Central Government |
| Age | 18 years and above |
| Application mode | Offline |
About the scheme
Coir Udyami Yojana is a Central Sector Scheme administered by the Ministry of Micro, Small and Medium Enterprises and implemented by the Coir Board. It provides financial assistance for establishing coir fibre, yarn or product units with a maximum project cost of ₹10,00,000 plus working capital not exceeding 25% of the project cost. The scheme offers a beneficiary contribution of 5%, bank credit of 55% and a subsidy of 40% on the project cost (excluding working capital). Special focus is given to SC/ST beneficiaries and those from the North Eastern Region, while encouraging women and youth participation in rural areas.
Benefits
- Beneficiary’s contribution: 5% of project cost
- Bank credit: 55% of project cost
- Rate of subsidy: 40% of project cost (excluding working capital)
- Maximum admissible project cost: ₹10,00,000 plus working capital (working capital ≤ 25% of project cost)
- Working capital not considered for subsidy
- Subsidy released as Term Deposit Receipt (TDR) for 2 years, then credited to the beneficiary’s loan account
Who can apply (eligibility)
- Applicant must be an individual above 18 years of age with Indian Citizenship
- No income ceiling for receiving assistance under the scheme
- Must set up a project related to production of coir fibre, yarn, or products under the coir sector
- Applicant may be an individual, company, self-help group (SHG), NGO, institution registered under Societies Registration Act, 1860, production co-operative society, joint liability group, or charitable trust
- Applicant must not have already availed a government subsidy under any other Central or State Government scheme for the same purpose
- Applicant belonging to special categories (SC/ST) must produce a certified copy of caste/community certificate
- If applying as an institution, must submit a certified copy of the bylaws wherever applicable
- Project cost must include capital expenditure such as building and machinery
- May include one cycle of working capital in the project proposal, but it will not be considered for subsidy; loan for working capital sanctioned after unit is set up; working capital must not exceed 25% of total project cost
- If already owning a work shed, only the cost of required machinery is considered as the project cost
- Special focus on SC/ST and beneficiaries from the North Eastern Region (NER)
- Scheme encourages women and youth participation in rural areas
Who cannot apply
- Units that have already availed government subsidy under any other scheme for the same purpose are not eligible
- Working capital will not be considered for subsidy
- Applications with inflated costing on machinery/building to avail higher subsidy will be rejected or cost reduced
Documents required
- Prescribed Application Form for Scheme assistance
- Copy of 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 proposed to be purchased along with the Invoice
- Industrial Establishment Certificate issued by the District Industries Centre (DIC)
- Plan & Estimate for construction of a workshed duly certified by a Chartered Engineer
- Project Profile of the proposed project
- In case of SC/ST, copy of Caste Certificate
- Any other supporting documents
How to apply
- 1Fill the prescribed application form and attach all required documents
- 2Submit the application to the nearest Field Office of the Coir Board
- 3Undertake the mandatory 5-day Entrepreneurship Development Programme (EDP) before or after submission, but before bank recommendation
- 4Application is scrutinized and forwarded to the Regional Level Selection Committee
- 5Committee evaluates and forwards approved cases to the bank
- 6On bank approval, deposit the 5% beneficiary contribution within 30 days
- 7Coir Board deposits the subsidy (40%) with the bank
- 8Bank disburses the term loan within 30 days of subsidy deposit
- 9Complete the project within 6 months
- 10Coir Board and the bank conduct physical verification before final subsidy adjustment
Frequently asked questions
Who is eligible for Coir Udyami Yojana?+
Individuals above 18 years of age with Indian citizenship, no income ceiling, intending to set up a coir fibre, yarn or product unit, and not having availed a similar government subsidy before. Applicants may be individuals, companies, SHGs, NGOs, institutions, production co-operative societies, joint liability groups or charitable trusts.
What is the subsidy amount under Coir Udyami Yojana?+
The scheme provides a 40% subsidy on the project cost, excluding the working capital component.
How to apply for Coir Udyami Yojana?+
Apply offline by filling the prescribed application form, attaching required documents, submitting to the nearest Coir Board Field Office, completing the mandatory 5-day EDP, and following the subsequent steps of scrutiny, committee recommendation, beneficiary contribution deposit, subsidy deposit by Coir Board, loan disbursement by the bank, project completion within 6 months and physical verification.
What is the maximum project cost under Coir Udyami Yojana?+
The maximum admissible project cost is ₹10,00,000 plus working capital, where working capital shall not exceed 25% of the project cost.
Is there an age limit to apply for Coir Udyami Yojana?+
The applicant must be at least 18 years of age. No upper age limit is specified in the scheme.
Can I apply if I already received a subsidy from another government scheme?+
No. Beneficiaries who have availed a similar subsidy under any Central or State Government scheme are not eligible.
What documents are required for applying to Coir Udyami Yojana?+
Documents include the prescribed application form, title deed copy, proof of coir industry experience, proof of training from Coir Board, machinery invoice, DIC certificate, workshed plan & estimate certified by a Chartered Engineer, project profile, and caste certificate for SC/ST applicants, plus any other supporting documents.
Is working capital eligible for subsidy under Coir Udyami Yojana?+
No. Working capital is not considered for subsidy and must not exceed 25% of the project cost.
Are there preferences for SC/ST or North Eastern Region applicants?+
Yes. The scheme gives special focus to SC/ST beneficiaries and those from the North Eastern Region (NER).
What is the beneficiary’s contribution under Coir Udyami Yojana?+
The beneficiary must contribute 5% of the project cost.
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