Coir Industry Technology Upgradation Scheme 2026: Up to ₹2.50 Crore Subsidy, Eligibility & Online Application

At a glance

About the scheme

Administered by the Coir Board under the Ministry of Micro, Small and Medium Enterprises, the Coir Industry Technology Upgradation Scheme (CITUS) seeks to modernise India's coir sector through state-of-the-art infrastructure and advanced technology. The scheme encourages the manufacture of high-value, customer-oriented coir and coir-blended products where coir is the dominant fibre. It incentivises sustainable, eco-friendly, and pollution-free production techniques while expanding enterprise presence beyond traditional regions. Financial support is disbursed as a direct reimbursement on investments made in certified, BIS-compliant new machinery after operational commencement, thereby generating rural employment opportunities, especially for women.

Benefits

• Financial assistance of 25% of the purchase cost of admissible plant and machinery.
• Maximum subsidy ceiling of up to ₹2.50 crore per coir unit or project.
• Financial assistance is paid through Direct Benefit Transfer (DBT) and the Public Finance Management System (PFMS) as a reimbursement.
• Freedom to procure machinery using personal capital or loans from banks, financial institutions, or leasing companies.
• Provision to import advanced machinery for setting up high-tech coir processing units subject to justified requirements.

Who can apply (eligibility)

• Newly established coir production or processing units set up by individuals, partnership firms, SHGs, associations, or enterprises in the small, medium, co-operative, private, or public sectors.
• Existing units modernising or adding capacity that have completed at least 5 years of successful operational history.
• Units manufacturing value-added coir or coir-blended items where coir is the dominant fibre.
• Units registered with the Coir Board under the Coir Industry (Registration) Rules, 2008, holding a valid Udyog Aadhaar.
• Project costs and investments must remain within the limits defined for small and medium enterprises under the MSME Act.
• Procured machinery and equipment must conform to Bureau of Indian Standards (BIS) or Coir Board specifications.

Who cannot apply

• Units exceeding the investment thresholds prescribed for medium-scale enterprises under the MSME Act.
• Single units or individual enterprises not meeting scheme category specifications.
• Entrepreneurs who have already availed of Central Government subsidies for the same purpose under schemes such as PMEGP, CUY, DPI, or TUF.
• Machinery or motors that do not satisfy BIS or Coir Board benchmark standards.
• Investments in used, second-hand, or refurbished machinery.

Documents required

• Udyog Aadhaar registration number
• Registration details under Coir Industry (Registration) Rules, 2008
• Aadhaar card and PAN card of the applicant
• Detailed Project Report (DPR)
• Notarised partnership deed (for partnership firms)
• Certificate of Incorporation, Memorandum of Association (MoA), and Articles of Association (AoA) (for corporate entities)
• Registration certificate from the Registrar of Co-operative Societies (for co-operative societies)
• Registration certificate from the competent authority (for SHGs or NGOs)
• Attested bills, payment receipts, performance guarantee (minimum 2 years) from machinery manufacturers, and electricity board connection records
• Validation certificate issued by a Chartered Accountant
• In-Principle Approval (IPA) letter issued by the Coir Board
• Proof and details of commencement of commercial production
• Bank account details and bank sanction letter along with techno-financial appraisal report
• Undertaking confirming non-receipt of central subsidy for the same purpose under PMEGP, CUY, DPI, or TUF
• Customs/DGFT/bank-certified invoices, shipping bills, and supplier performance certificates (in case of imported machinery)

How to apply

1. 1Visit the official Coir Board services portal (coirservices.gov.in) and register for a new login by providing your name, Aadhaar, PAN, email address, and mobile number.
2. 2Log in with the credentials received via SMS/email, reset your password, and navigate to the CITUS scheme tab on your user dashboard.
3. 3Fill in the Detailed Project Report (DPR) online in the prescribed layout and submit it to the relevant Regional or Sub-Regional Office of the Coir Board.
4. 4Await evaluation and obtain the formal In-Principle Approval (IPA) from the Coir Board.
5. 5Procure and install the approved BIS-standard plant and machinery using bank credit or self-financing.
6. 6Ensure your Udyog Aadhaar and Coir Board registration under the 2008 rules are active, and commence commercial production.
7. 7Submit the final online subsidy claim with all supporting invoices, Chartered Accountant certificates, and performance guarantee documents within one year of commencing production.

Frequently asked questions