Coir Udyami Yojana (CUY) for Startups in Guwahati, Assam

Coir Industry & Startups in Guwahati, Assam 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 in Guwahati, Assam 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 to110 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 Vikaas Yojana in Guwahati, Assam?

Coir Vikaas Yojana(CVY) or most recently known as Coir Udyami Yojana (CUY) in Guwahati, Assam 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.

About Assam

Assam is a northeastern state of India situated in the south of the eastern Himalayas and the Barak and Brahmaputra Rivers. The state’s official language is Assamese and Bodo, and Assam is particularly famous for tea and Assam Silk. The state is the home to one-horned Indian Rhinoceros, Asian elephants, tigers, and various wildlife animals and Asiatic birds. The Kaziranga National Park and Manas National Park are also located in Assam, and both the national parks boost the state’s economy through wildlife tourism.
Capital- Dispur
Assam is the highest tea producer in India and produces more than half of the country’s tea. The state’s economy primarily depends on agriculture and oil. The Assam Arakshan Basin has a quarter of the country’s total oil reserves and produces 12% of the country’s petroleum. Besides all this, Assam is also rich in natural resources.
Despite its petroleum reserves, high tea supply, and rich natural resources, Assam’s growth rate cannot keep pace with the country’s growth rate. From 1981 to 2000, the growth rate of the Indian economy was 6% per annum, but the growth rate of Assam was noted to be 3.3%. Even during the sixth plan period Assam reported a negative growth of 3.78%. The economy of Assam is showing signs of improvement, especially in the manufacturing sector. Over the past five decades, the tertiary sector of Assam has constantly been improving and recorded the highest growth rates.
The employment rate of the Assam is relatively low, making unemployment a significant issue of concern for the Assam government. The reason associated with unemployment can be poor education system and overpopulation. Though the state has oil reserves and rich natural resources still, the unemployment rate of Assam is relatively high. Two factors are working behind that. First, the oil reserves hire highly qualified workers outside of Assam; besides this, the local people of Assam have employment threats from the illegal migrants of Bangladesh who compete with the local population by offering to work at lower wages.
Agriculture is the only sector that records growth and is the highest contributor to the economy of Assam. The state is famous around the globe for its tea. Though the state records growth in agriculture, the methods used for agriculture in Assam are primitive, and the modernization in Assam agriculture is yet to be realized. Floods are another major threat to Assam agriculture as the state is located in a flood-prone area. Every year the families of Assam farmers have to suffer due to the overflowing of rivers resulting in floods. Besides agriculture, hand-looming and handicraft of Assam are famous in the country.
Business ideas in Assam
The Government of Assam is taking initiatives and making schemes to encourage the people to startups. The state government is very determined to make the policies to develop a good startup ecosystem. Currently, doing business in Assam is relatively easy compared to other states in the country. Many sectors in Assam have shown signs of improvement; some of them are – petrochemicals, tea production, handloom industry, personal care products, food processing, and many more. Following are the best business ideas in Assam: –
Tea production
Tea is the beloved drink of India, and Assam being the highest tea producer, increases the chances of a successful tea business. The state already produces 51% of the total tea in the country, so setting up a tea plantation or selling packaged tea, flavored tea, etc., can be a good startup idea in Assam.
Handloom
It is the oldest industry in Assam, due to which the state has a rich art of handloom, and people around the country love the Assamese handlooms. Even the foreign nationals who visit India want to possess Assamese handloom. Hence, the demand for Assamese handloom is relatively high, which indicates that it will be a profit-yielding business in Assam.
Fish farming
The state government of Assam is trying to promote fish farming for economic purposes. For that, the state government has created a fisheries department to promote the idea of commercial fish production in almost all water bodies. The fish industry in the state is growing at a fast pace, which means that fish farming in Assam is undoubtedly a good idea for making profits.
Agarwood
Assam is naturally perfect for growing raw material required for agarbatti or joss stick. The agarwood made in Assam is demanded and supplied all around the globe, and one can open a store and sell agarwood products in Assam.
Tourism
Assam has nature’s beauty, and that’s why tourism is among the flourishing sectors in Assam. Undoubtedly there are many unexplored tourist spots in Assam which means that the tourism business is ever-expanding. Tourism-related businesses like transport services, tourist guide facilities, restaurants, hotels, etc., will surely be very profitable in the state.
Coaching institutes
The quality of education is very poor in Assam; that’s why the state’s unemployment rate is so high. Assamese want to develop their state by taking part in administration, but because of poor quality education, they didn’t get successful in it. So, setting up coaching institutes that provide good quality education for different competitive exams will be a great business idea.
Healthcare
Assam is close to nature and perfect for the startup of Ayurvedic healthcare products. Over the past few years, Assam has developed successful entrepreneurs like Dr. Rakesh Das and Ghanshyam Das Dhanuka in healthcare and pharmaceuticals. One can open the startup of ayurvedic and organic healthcare products in Assam. Though this is an unconventional business idea, it will make huge profits.
Startup Ecosystem in Assam
Though the startup ecosystem has not fully developed in Assam, the state government is working on building a prosperous startup ecosystem in Assam. In ”Startup India Awards 2020,” Assam has been recognized as an emerging startup ecosystem in the country. The Government is formulating different schemes and policies to build a supportive startup ecosystem in Assam and motivate youth to take up entrepreneurship as their career.

Objectives of the CVY Scheme in Guwahati, Assam

The key objectives behind the launch & implementation of the scheme in Guwahati, Assam 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 in Guwahati, Assam

The components present under the scheme in Guwahati, Assam are-

i. Skill Upgradation and MCY in Guwahati, Assam

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) in Guwahati, Assam

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) in Guwahati, Assam

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) in Guwahati, Assam

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 in Guwahati, Assam

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) in Guwahati, Assam

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 in Guwahati, Assam

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 in Guwahati, Assam

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 in Guwahati, Assam

i. Under Coir Vikaas Yojana in Guwahati, Assam

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.

ii. Financial Assistance for production Infrastructure Development under CVY Scheme in Guwahati, Assam

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.

iii. Skill Upgradation & Mahila Coir Yojana Under CVY Scheme in Guwahati, Assam

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 in Guwahati, Assam

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 in Guwahati, Assam

The process of application for availing CVY scheme in Guwahati, Assam 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 in Guwahati, Assam

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 in Guwahati, Assam

The CVY scheme in Guwahati, Assam 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 Vikaas 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.