Coir Vikas Yojana- Coir Industry Technology Upgradation Scheme
Technology upgrade support · coir SHGs, associations, enterprises · India
Coir processing units across India can receive a 25% capital subsidy on new plant and machinery for setting up new coir units or upgrading existing ones, up to a maximum of ₹2.5 crore per unit. The grant is paid as a reimbursement after production starts. Apply online via the Coir Board portal at coirservices.gov.in.
About This Scheme
Coir processing units across India can receive a 25% capital subsidy on new plant and machinery for setting up new coir units or upgrading existing ones, up to a maximum of ₹2.5 crore per unit. The grant is paid as a reimbursement after production starts. Apply online via the Coir Board portal at coirservices.gov.in.
Full official description
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 & 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 'State-of-the-Art' 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
- 25% capital subsidy on the cost of eligible new plant and machinery
- Maximum subsidy: ₹2.5 crore per coir unit/project
- Released as reimbursement (via Direct Benefit Transfer) after the unit installs machinery and commences production
💡 Why Startups Should Care
For entrepreneurs in the coir value chain — mats, ropes, geotextiles — this scheme funds technology upgrades that improve productivity and product quality, helping you compete with synthetic alternatives on both cost and sustainability.
Who Can Apply (Eligibility)
- Must be a new coir production/processing unit (individuals, partnerships, SHGs, co-operatives, or small/medium enterprises) interested in value-added coir products where coir is the dominant fiber
- OR an existing unit registered with the Coir Board and holding Udyam Aadhaar, seeking modernization — must have at least 5 years of successful operation before applying for modernization
- Must NOT have availed any Central Government subsidy under PMEGP, CUY, DPI, or TUF for the same purpose
- Investment must stay within MSME Act limits for small and medium enterprises
How to Apply
- Prepare a Detailed Project Report (DPR) in the prescribed format.
- Submit the DPR to the nearest Regional/Sub-Regional Office of the Coir Board.
- Include Udyog Aadhaar, PAN, Aadhaar, and Coir Board registration details.
- The Board reviews and sanctions the project.
- Assistance is disbursed as the unit is set up or capacity is added.
Frequently Asked Questions
What is CITUS Scheme?
The scheme "Coir Industry Technology Upgradation Scheme (CITUS)" is a component of the "Coir Vikas Yojana". The scheme was launched by the Ministry of Micro, Small & Medium Enterprises, Government of India for providing modern infrastructure facilities to the production units resulting in improvement of productivity and quality.
What is the objective of this scheme?
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 'State-of-the-Art' 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.
Which is the implementing agency of this scheme?
Coir Board, Kochi
Who are eligible for the assistance under the scheme CITUS?
Assistance will be available to entrepreneurs in the categories of individuals/partnership firms, SHGs, Associations, enterprises from small scale / medium / co-operative/ private sector / public sector, interested for 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.
Is it necessary for Coir Unit to register with the Coir Board?
Yes, all coir production/processing units registered with the Coir Board under Coir Industry (Registration) Rules, 2008, and having Udyog Aadhaar are eligible to apply for financial assistance for modernization under this scheme.
What is the nature of assistance which is provided under scheme?
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.
What is the purpose of providing financial assistance?
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.
How the financial assistance will be paid under the scheme?
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.
Which types of entrepreneurs are not eligible for assistance?
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.
How to apply for the scheme?
Submit a Detailed project report (DPR) in the prescribed format to the nearest ROs/SROs of the Board through online.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Udyog Aadhaar number
- Details of registration under Coir Board Registration Rules 2008
- PAN and Aadhaar number of the applicant
- Detailed Project Report
- Partnership registration (if applicable)