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Coir Udyami Yojana


  • Coir Udyami Yojana – Credit linked subsidy scheme for coir units


  • Administered by the Ministry of Micro, Small and Medium Enterprises
  • Implemented by the Coir Board


  • Beneficiary’s contribution – 5%
  • Bank credit – 55%
  • Rate of subsidy – 40%
  • Maximum project cost – Rs.10 lakhs + working capital (not exceeding 25% of project cost)


  • Indian citizens above 18 years old
  • No income ceiling
  • Projects for production of coir fibre/yarn/products
  • Available to individuals, companies, self-help groups, NGOs, and more
  • Project cost includes building and machinery
  • Option to include one cycle of working capital

Implementation Strategy:

  • Financial institutions providing loans under CUY
  • Bond with Coir Board for proper maintenance and use of machinery
  • Recovery of grant for fraudulent misrepresentation or unit going out of production within 5 years
  • Exclusion for units that have already received Govt. subsidy for the same purpose
  • Working capital not considered for subsidy
  • Inflated costing applications will be rejected or considered with reduced project cost.

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