Coir Industry & Startups has been a major part of Indian cultural history and holds value in terms of economic significance, especially in the coconut producing states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Odisha, where coconut husk, the primary raw material for coir Industry & Startups is available in abundance and accounts for a major source of income to the people including employment opportunities to over seven lakhs workers in the major coconut producing states of the country that includes households, co-operatives, NGOs, manufactures and exporters.
Being an eco-friendly fiber that helps to maintain a sustainable environment while reinstating its importance as the fiber of the future, it has huge growth prospects for the economic development of the nation. However, the Indian Coir Industry & Startups has suffered a lot due to a whole host of problems such as decentralized operations and unorganized processes, lack of appropriate training and structured functioning, technological upgradations and innovations in the past that led to problems in achieving the expected level of quality of the ultimate products. Problems such as substandard quality of products and lack of skilled workers could be detrimental to the survival of the coir Industry & Startups in India
Coir Industry & Startups being a labour-intensive and export-oriented Industry & Startups could be a hugely profitable source of GDP if there are adequate skilled workers, training facilities, and necessary infrastructure available in the country. Training and upskilling become imperative for flourishing the coir Industry & Startups in the untested & non-traditional areas. Thus, the Ministry of MSME, Government of India has made massive efforts to revive the lost fame of the traditional Indian Industry & Startups by introducing various schemes and programs which offer financial assistance to set up and run coir units including a 3-tier training system to upskill training artisans and improvising quality of products through supervisory/managerial instructors/trainers and expert artisans with the right skills.
Accordingly, some of the notable programs to revive and restart the coir Industry & Startups in India include schemes like SFURTI (Scheme of Fund for Regeneration of Traditional Industries) and Coir Udyami Yojana (CUY). As a result of these efforts, the coir products are exported annually to 110 countries all over the world and garnered more than Rs.2192 Crores (till Jan 2019) of foreign exchange for the country during 2018-19.
What is Coir Vikas Yojana?
Coir Vikas Yojana(CVY) or most recently known as Coir Udyami Yojana (CUY) is a credit-linked subsidy scheme to facilitate sustainable development of the coir Industry & Startups through rejuvenation, Modernization, and Technology Upgradation of the Coir Industry & Startups in the country that will generate more employment opportunities, especially for women and the weaker sections of people in rural areas.
While the scheme is administered by the Ministry of Micro, Small, and Medium Enterprises (MSME), the responsibility to ensure the implementation of the scheme is on the Coir Board, which is a statutory agency created under the Ministry of MSME at the national level.
This credit-linked subsidy comes as a mixture of the business loan and the interest subsidies offered by the Central Government to support entrepreneurs in setting up coir units subject to a percentage of small upfront contribution by the owner of the coir unit.
The scheme offers financial aid for various purposes related to the establishment of a new coir unit or for the modernization of existing coir units up to the maximum value of Rs.10 lakhs plus one cycle of working capital, which shall not exceed 25% of the project cost. Though the loans so offered are composite, but neither the working capital should not be more than 25% of the loan amount offered and shall not be counted for the purposes of subsidy.
Objectives of the CVY Scheme
The key objectives behind the launch & implementation of the scheme are as follows-
i. Bringing modernization & technological up-gradation of the Coir Industry & Startups by the adoption of the latest technologies in the production and processing of coir & coir related products;
ii. Upgradation of the production and processing technologies with the aim to improve overall productivity, quality & diversification of products.
iii. Increasing productivity &efficiency of the workers to enhance their earnings.
iv. Increase utilization of coconut husk to increase the production of coir fiber
v. Generate rural employment opportunities in the coconut-producing States/Union Territories, especially for the women population for gender empowerment.
vi. Improve socio-economic conditions of the producers/workers engaged in the coir
vii. Industry & Startups by giving skill-training by attracting them to the fold of coir sector.
viii. Ensure contribution to the inclusive growth of vulnerable sections of beneficiaries especially those belonging to Scheduled Castes (SC), Scheduled Tribes (ST), and North Eastern Region (NER);
ix. Providing backward/forward linkages to the unitholders to whom assistance is given under the Scheme.
x. Providing financial assistance in setting-up up new innovative coir processing units and ensuring better utilization of the existing raw materials.
Components of the Coir Vikas Yojana
The components present under the scheme are-
i. Skill Upgradation and MCY
The CVY skill up-gradation & Mahila Coir Yojana (MCY) are the components of the CVY scheme which emphasized women’s empowerment by providing opportunities to develop their skills and earn income for their financial independence. Similarly, the skill up-gradation program focuses on skill development related to the processing of coir & related products through training & workshops.
ii. Export Market Promotion Scheme (EMP)
This scheme adapts product-specific and market-specific programs to increase the market value of coir products to the workers/artisans by way of training, workshops, international seminars, and conferences helping coir units to increase publicity of the coir units globally. Similarly, another key portion of the scheme is External Market Development Assistance (EMDA).
iii. Development of Production Infrastructure (DP)
The Development of Production Infrastructure (DP) has the primary objective to improvise the infrastructure of the coir units by offering assistance in the procurement of new and advanced technologies. It also encourages the practice of modern machines and equipment while adapting to modern techniques.
iv. Domestic Market Promotion Scheme (DMP)
This scheme intends to assist coir units in relation to-
- Market development assistance
- Guide in the utilization of financial aids
- Participate in fair and trade markets
v. Trade-Related Functional Support Services
The principal components of this scheme are offering services such as knowledge management, information management, infrastructure creation, human resources, etc.
vi. Welfare Measure (Group Personal Accident Insurance Scheme)
The Welfare Measure (Group Personal Accident Insurance Scheme) is a scheme that offers financial assistance to the deceased/disabled/ coir worker or his nominee. The sum of the insurance premium is paid by the Coir Board to the insurance company selected through quotations.
Eligibility under the CVY Scheme
i. Any new or existing coir unit processing or producing units will be eligible for financial assistance under the scheme.
ii. The beneficiary must be an individual above 18 years of age and a citizen of India.
iii. Individuals, Companies, Self Help Groups, Non- Governmental Organizations(NGOs), a society registered under Societies Registration Act 1860, Production Co-operative Societies, Joint Liability Groups, and Charitable trusts are eligible to avail of CVY schemes.
iv. Any financial support under the CVY scheme shall only be eligible for projects related to the production or processing of coir fiber/yarn/products etc. under the coir Industry & Startups.
v. However the units that have already availed Govt. subsidy under any other Scheme of Govt. of India or State Govt. for a similar purpose shall be disqualified to avail of the scheme.
vi. There will be no income ceiling for assistance for setting up coir units under the CVY scheme.
vii. All the Scheduled Commercial Banks, Regional Rural Banks (RRBs), and Co-operative Banks who are Member Lending Institutions (MLIs) of the Credit Guarantee Trust Fund for MSME as well as through SC/ST/OBC Finance and Development Corporations will be eligible lenders for availing CVY facility.
Pre-Requisites for Availing CVY Scheme
i. Coir producing or processing units registered with a Coir Board must have a valid Udyog Aadhaar registration to be eligible to avail financial assistance for modernization of existing coir units.
ii. Certified copy of the caste/community certificate issued by the competent authority in the case of other special categories (SC/ST).
iii. Certified copy of the bye-laws of the institution (or articles of association in case of a company)
iv. The applicants will have the choice of whether to or not include one cycle of working capital in the proposal for financial assistance.
v. The banks may consider approval of the project and a loan shall be given to the working capital also without considering any grant for the same.
vi. The loan for working capital shall only be approved after setting up of the coir unit and in no event, shall it be more than 25% of the project cost.
vii. If the beneficiary already possesses a workshed for coir processing purposes, then the cost of the project shall only include the cost of required machinery or infrastructure under the scheme
viii. Only one person from each family shall be eligible to avail of the CVY scheme for financial assistance for setting up of projects under Coir Udyami Yojana, where ‘family’ includes self and spouse.
Quantum and Nature of Financial Assistance
i. Under Coir Vikas Yojana
Under this scheme, the lender bank/financial institutions will issue composite loans comprising term loans as well as working capital loans up to the maximum value of Rs.10 lakhs plus working capital, which shall not exceed 25% of the project cost. However, the subsidy offered under the scheme will be calculated exclusive of the component of working capital component.
| The proportion of Funding under Coir Udyami Yojana | ||
| Contribution of Beneficiary Coir Unit (cost of the Project)
|
Bank credit percentage for the cost of the project | Rate of Subsidy (on the cost of the project)
|
| 5% | 55% | 40% |
ii. Financial Assistance for production Infrastructure Development under CVY Scheme
The CVY scheme for Development of Production Infrastructure offers financial assistance to coir units to help them set their business units or for modernization of existing units.
| Type of Coir Unit | Subsidies Given For | Maximum Limit |
| For New Units | Cost of equipment and other infrastructural facilities for setting up of the defibering unit | 25% of the total cost of infrastructure and equipment subject to a limit of Rs. 6 Lakhs. |
| For New Units | For Automatic Spinning Unit | 25% of the total cost of infrastructure and equipment subject to a limit of.4 Lakh. |
| For New Units | For other purposes | 25% of the total cost of infrastructure and equipment is subject to a limit of Rs.5 Lakh. |
| For New Units or Existing Units | For a composite or a multiple units | Rs. 9 lakh |
| For Existing Units | For Modernisation of an existing coir unit. | 25% of the cost of modernization equipment and infrastructural facilities is subject to a maximum of Rs.2 lakh. |
iii. Skill Upgradation & Mahila Coir Yojana Under CVY Scheme
The Skill Upgradation & Mahila Coir Yojana was launched with the objective to encourage entrepreneurship and attract more entrepreneurs to start coir processing units and to effectuate up-gradation of skills of workers/artisans through training workshops and various programs like Entrepreneurship Development Programme, Awareness Programme, Workshop, Seminar, Exposure Tour, etc. Additionally, the coir board also offers a given a monthly stipend amounting to Rs.1000/- per month to create skilled manpower required for the coir Industry & Startups.
Similarly, various training workshops and training programs are conducted under the Mahila Coir Yojana” scheme exclusively for local women artisans regarding spinning of coir yarn/ various coir processing activities in regions producing coir fiber in the country
The scheme envisions distribution of coir producing & processing equipment such as motorized rats/motorized traditional rats and other equipment which can be operated by women at 75% subsidy after completion of the 2 months training program subject to a maximum ceiling of Rs. 7500/-. Also, the women undergoing training are given a stipend amounting to Rs.1000 per month.
Duration of Repayment of Loan
The total duration of the loan shall not be more than seven years after an initial moratorium as specified by the respective bank/financial institution to enable the beneficiaries to complete this project. The loans so availed shall not need any collateral or third-party guarantee as they will be covered under the Credit Guarantee Trust Fund Scheme (CGTMSE.)However, the beneficiary will be required to pay the guarantee fee for such guarantee cover.
Process of Application for availing CVY Scheme Online
The process of application for availing CVY scheme involves the following steps as provided below-
Step I- New Login Registration
The applicant beneficiary needs to log on to the Coir Board, under the Ministry of MSME. While existing users could log indirectly through their login id and password and for new registration, click ‘New Login Registration’ after providing necessary details such as the Name of the entity and contact details.
Step II – CUY New Registration
After registration, the applicant will receive a username and password will be intimated by SMS after which the applicant can start filling out his application form.
Step III- Coir Application Form Login
Login for filling out the application form on the My coir portal.
Step IV- – Beneficiary registration
Common details of the beneficiary should be filled in here.
Steps V- Selection of the CVY and Submit the Application
Select the required CVY scheme and upload the required scanned documents as provided below for approval-
- Photograph in JPEG format.
- Copy of PAN Card
- MSME Registration Certificate
- Community Certificate (In case of SC/ST)
- Company Registration Certificate (If not individual)
- Training certificate
- Project Report
- Title deed
- Plan & Estimate
- Machinery Invoice
On receipt of the application form, the coir board will check the documents and intimate the bank who will then intimate the beneficiary about the sanction within sixty days.
The bank will sanctions 95% of the cost of the project after the beneficiary will deposit the remaining 5% contribution of his contribution, which must be made within thirty days of receiving the sanction letter from the bank.
List of documents to be submitted by the Applicant
i. Prescribed Application Form for Scheme assistance;
ii. Copy of Title Deed of the property on which the unit is proposed to be Set-up/already located.
iii. Proof of previous Coir Industry & Startups experience
iv. Proof of training availed from Coir Board
v. Machineries proposed to be purchased along with Invoice
vi. Industrial Establishment Certificate issued by DIC
vii. Plan & Estimate for construction of workshed duly certified by Chartered Engineer
viii. Project Reports of the proposed project
ix. Any other supporting documents
Benefits of the CVY Scheme
The CVY scheme offers a lot of benefits for the beneficiaries such as-
i. Provision of Processing Equipment at Subsidized Rates-The CVY scheme allows for the subsidized procurement of equipment for coir spinning, coir-spinning ratts, machinery, materials, and other necessities with a 75% subsidy under the scheme of Mahila Coir Yojana.
ii. Skill Upgradation through Training workshops-The CVY scheme helps the coir units/workers/artisans in the development and up-gradation of the coir production & processing through training workshops, seminars, and learning programs.
iii. Encouraging Entrepreneurship-Another benefit of the CVY scheme is to create awareness among entrepreneurs, coconut growers, and other stakeholders for setting up coir-based production units and modernizing existing coir units for better productivity and income. Not only this, various training programs are held to provide guidance related to market promotion, export promotion, and market development of the products.
iv. Creating Awareness & quality consciousness-By imparting quality consciousness at grass root level among the workers and educating them about the standard methods and quality of yarn, fiber, and other products will develop the spirit of entrepreneurship in their minds.
v. Helpingin Gender Empowerment –The Coir Vikas Yojana scheme includes two distinct components, namely, Mahila Coir Yojana and Skill Upgradation with an objective to create gender empowerment for the socially backward making them financially independent. The Mahila Vikas Yojana helps women coir workers to obtain necessary skills and equipment at subsidized rates for better output after the completion of training. The scheme also offers payment of a monthly stipend to take care of their well-being during the period.
vi. Insurance & welfare scheme for workers- In the CVY scheme, the coir workers are afforded protection against any unfortunate event like death or disability through group personal insurances for which the premium is paid by the Coir Board created under the scheme which secures the future of the workers as well as their families.
