Coir Vikas Yojana- Coir Industry Technology Upgradation Scheme
Category: Business & Entrepreneurship, Skills & Employment
Level: Central | State: All
Ministry: Ministry Of Micro, Small and Medium Enterprises

Details:
The scheme “Coir Industry Technology Upgradation Scheme (CITUS)” is a component of the “Coir Vikas Yojana” and the scheme was launched by the Ministry of Micro, Small &amp; Medium Enterprises, Government of India. The objectives of this component are:

  - To provide modern infrastructure facilities to the production units resulting in improvement of productivity and quality.
  - To support the establishment of new &#39;State-of-the-Art&#39; Coir Processing Units.
  - To spread the industry to potential areas.
  - To promote enhanced utilization of available raw materials.
  - To create more employment opportunities, especially for women in rural areas.
  - To attract new generation entrepreneurs to the industry.
  - To modernize the existing coir units.
  - To promote the development and installation of information technology including Enterprise Resource Planning (ERP).
  - To support the production of high-value customer-oriented products.
  - To make the Coir Industry integrated and competitive with modern technologies.
  - To facilitate the adoption of eco-friendly production techniques.
  - To achieve the target of a pollution-free coir industry with technological advancements.  

> **Nodal Agency:**

Coir Board, Kochi, will be the Nodal Agency for the implementation of CITUS. The component will be implemented through the Regional/Sub-regional offices of the Coir Board. Technical interventions, wherever necessary, will be provided by Central Coir Research Institute (CCRI), Kalavoor, and Central Institute of Coir Technology (CICT), Bangalore, and other institutes engaged in the development and promotion of the coir industry.

Benefits:
Assistance under the component will be available to entrepreneurs in the categories of SHGs, Associations, and Enterprises from small/medium/co-operative/public sector, interested in the production of value-added coir/coir blended items, where coir is the dominant fiber, by setting up a new unit or adding to the existing capacity, subject to investment only in new Plant and Machinery.
All eligible Coir units under the component will be entitled to get financial assistance for the procurement of eligible Plants and Machinery for modernization, upgradation, and/or establishing a new unit on making an application in the prescribed format for the purpose.
The financial assistance shall be 25% of the cost of admissible items of Plant and Machinery procured by the Coir units.
The upper ceiling of the financial assistance will be ₹2.50 crore per coir unit/project.
The financial assistance will be payable only in Indian Rupees in India through Direct Benefit Transfer (DBT) mode and Public Finance Management System (PFMS) as reimbursement of the amount invested.
Note 01:
 Single unit/enterprise will not be allowed for grant of assistance under this Scheme.
Note 02: 
No applications from those units exceeding the investment limits prescribed for medium-scale enterprises in the MSME Act, from time to time, shall be considered for grant of assistance under this component.
Note 03: 
The amount will be released after the Coir Unit installs the appropriate/approved Plant and Machinery and commences its operation.
Note 04:
 The applicant unit will be at liberty to procure the Plant and Machinery out of the loan amount from any financial institution/bank/leasing company or from its own resources

Eligibility Criteria:
1. All newly established coir production/processing units in the categories of individuals/partnership firms, SHGs, Associations, and enterprises from small scale/medium / co-operative/ private sector / public sector, interested in the production of value-added coir /coir blended items, where coir is the dominant fiber by setting up new coir unit or upgrading the existing unit will be eligible to apply for financial assistance.
   1. All coir production/processing units registered with the Coir Board under Coir Industry (Registration) Rules, 2008, and having Udyog Aadhar are eligible to apply for financial assistance for modernization under this scheme.
   1. The units which have applied for assistance under this component will have to complete 5 years of successful operation before applying for assistance under modernization.
   1. The financial assistance under this component will be available to entrepreneurs who have not availed of any Central Government subsidy under PMEGP, CUY, DPI, TUF, etc. for the same purpose.

**Note 01:** Financial assistance under this component will be extended to the entire coir sector of the country. The project cost of the units applying for financial assistance shall be within the investment limits prescribed for Small and Medium Enterprises under the MSME Act from time to time.
**Note 02:** The equipment and machinery/motors eligible for assistance under the scheme shall not be below the standards prescribed from time to time by BIS.
**Note 03:** The ceiling of prices of different items of machinery will be fixed and reviewed periodically by a five-member Technical Committee (TC).
**Note 04:** The machinery/equipment procured should be as per the standards prescribed by the BIS, and can be sourced from the open market at the option/choice of entrepreneurs with valid receipts/invoices with GST number. Machinery can also be imported for setting up high-tech coir processing units for which the beneficiary unit shall substantiate the reason for the import of machinery.
**Note 05:** The machinery suppliers will have to give a &#39;performance guarantee&#39; for a period of at least two years to the beneficiaries and a copy to be provided while availing the incentive under the scheme. In the case of imported machinery, the units shall produce the invoice, shipping bill, etc. certified by Customs Authorities/DGFT/Banks with a performance certificate from the supplier.
**Note 06:** With respect to projects for modernization, the cost of new machinery/equipment/power generators/material handling equipment/conveyors, etc. installed/procured will only be taken for arriving at the project cost for calculation of the amount of financial assistance.