Coir Udyami Yojana
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Quick Answer
A credit-linked subsidy scheme by Coir Board and Ministry of MSME for setting up coir production units, offering up to ₹10 lakh project cost plus working capital, with a 40% subsidy.
- Funding amount
- Up to ₹9.5L
- Funding type
- Subsidy
- Provider
- Ministry of MSME
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
The Coir Udyami Yojana is a flagship credit-linked subsidy scheme launched by the Ministry of Micro, Small and Medium Enterprises (MSME) and implemented by the Coir Board. Its primary objective is to foster entrepreneurship and create employment opportunities within the coir sector, particularly in rural areas. The scheme aims to facilitate the establishment of new coir manufacturing units by providing crucial financial assistance in the form of substantial subsidies linked to bank credit. This initiative addresses the capital requirements of individuals and various entities looking to venture into coir fibre, yarn, and product manufacturing, thereby promoting the sustainable growth of the coir industry. By offering financial incentives and support, the Coir Udyami Yojana plays a vital role in modernizing coir production, enhancing its market competitiveness, and improving the livelihoods of artisans and entrepreneurs engaged in this traditional sector. It particularly focuses on empowering special categories like SC/ST, women, and youth.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) is the Government of India ministry for the MSME sector. It does not run one programme. It runs a set of central schemes, each with its own portal and its own route in: a credit-linked subsidy for new…
Learn moreBenefits & Funding
- Amount
- Up to ₹9.5L
What You Get
The Coir Udyami Yojana offers substantial financial support for establishing coir units. Beneficiaries receive a 40% subsidy on eligible project costs up to ₹10 lakh (i.e., up to ₹4 lakh). Additionally, banks provide 55% of the project cost as a credit-linked loan (up to ₹5.5 lakh), after accounting for the beneficiary's 5% contribution. The maximum combined funding (subsidy + loan) can therefore reach up to ₹9.5 lakh. The scheme also includes mandatory participation in a 5-day Entrepreneurship Development Programme (EDP) to equip applicants with necessary skills, alongside facilitation support from the Coir Board to navigate the application and bank linkage process.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are first scrutinized by the Coir Board's Field Office. Eligible cases are then forwarded to a Regional Level Selection Committee. This committee evaluates the proposals and, upon approval, recommends them to financial institutions for credit linkage. Final selection and sanction are subject to the bank's approval and due diligence.
Application Process
- 1
Fill & Apply
Fill the prescribed application form with all required documents and submit it to the nearest Coir Board Field Office.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the maximum project cost covered under Coir Udyami Yojana?
The maximum admissible project cost is ₹10,00,000/-, along with one cycle of working capital not exceeding 25% of the project cost. However, working capital is not considered for subsidy calculation.
What is the beneficiary's contribution required?
The beneficiary is required to contribute 5% of the total project cost.
What percentage of subsidy is offered under this scheme?
A subsidy of 40% of the eligible project cost (excluding working capital) is provided by the Coir Board.
Which entities are eligible to apply for this scheme?
Eligible applicants include individuals above 18 years of age with Indian Citizenship, Companies, Self-Help Groups (SHGs), Non-Governmental Organizations (NGOs), Institutions registered under the Societies Registration Act, Production Co-operative Societies, Joint Liability Groups, and Charitable Trusts.
Is there any training provided under this scheme?
Yes, applicants must undergo a mandatory 5-day Entrepreneurship Development Programme (EDP) either before or after application submission, but before bank recommendation.
Can I apply if I have already received another government subsidy?
No, applicants must not have already availed a government subsidy under any other scheme of the Government of India or the State Government for the same purpose.
Sources
Data on this page is compiled from official program and provider references.
