The coir industry plays an important role in supporting rural employment and promoting eco-friendly products in India. It mainly involves the production of coir and coir-based goods derived from coconut husk, which are widely used in home décor, agriculture, and industrial applications.
To strengthen this sector and improve the livelihood of artisans and small producers, the Government of India introduced the Coir Vikas Yojana (CVY). The scheme aims to modernise the coir industry, improve productivity, support women entrepreneurs, and expand export opportunities for coir products.
What is Coir Vikas Yojana (CVY)?
Coir Vikas Yojana (CVY) is an umbrella scheme of the Government of India implemented by the Coir Board under the Ministry of Micro, Small and Medium Enterprises (MSME). Formerly known as the Coir Plan (General) Scheme, it aims to promote the sustainable development, modernisation and global competitiveness of India's coir industry.
The scheme provides financial assistance, skill development, technology support and marketing assistance to coir workers, artisans, entrepreneurs, self-help groups, and micro and small enterprises engaged in coir production and value addition. Through these initiatives, Coir Vikas Yojana seeks to improve productivity, generate employment, encourage entrepreneurship, and strengthen the domestic and international market for coir and coir-based products.
Key objectives of Coir Vikas Yojana
The objectives of Coir Vikas Yojana are aimed at strengthening the coir sector by promoting sustainable growth, improving productivity, enhancing the skills of coir workers, encouraging entrepreneurship, supporting technological upgradation, and expanding the domestic and international market for coir and coir-based products.
- To modernise traditional coir production techniques and improve efficiency
- To generate sustainable rural employment, especially in coconut-producing regions
- To support skill development and training of coir workers
- To promote women participation in coir-based industries
- To enhance quality and productivity of coir products
- To expand domestic and international markets for coir goods
- To encourage entrepreneurship in the coir sector
6 main components of Coir Vikas Yojana
The scheme is structured into multiple components that support different aspects of the coir industry:
- Skill development and training programmes for coir workers
- Infrastructure development for coir production units
- Financial assistance for coir-based enterprises
- Technology upgradation and mechanisation support
- Marketing and export promotion initiatives
- Support for research and development in coir products
These components work together to ensure holistic growth of the sector.
Mahila Coir Yojana (MCY)
The Mahila Coir Yojana is a key component of CVY focused on empowering women in rural areas:
- Provides training to women in spinning and coir yarn production
- Encourages self-employment opportunities for rural women
- Supplies motorised spinning equipment at subsidised rates
- Promotes financial independence among women artisans
- Supports women-led micro-enterprises in the coir industry
- Enhances skill development and livelihood opportunities
This component plays a major role in women empowerment in coastal and rural regions.
Export Market Promotion scheme (EMP)
The Export Market Promotion (EMP) scheme under CVY focuses on increasing global demand for coir products:
- Supports participation in international trade fairs and exhibitions
- Provides financial assistance for export promotion activities
- Helps coir exporters connect with global buyers
- Promotes branding and marketing of Indian coir products abroad
- Encourages product diversification for international markets
- Strengthens India’s position in the global coir industry
This scheme helps boost foreign exchange earnings through coir exports.
Eligibility criteria for Coir Vikas Yojana
To avail benefits under Coir Vikas Yojana (CVY), applicants must satisfy the following eligibility conditions:
| Eligibility criterion | Requirement |
|---|---|
| Eligible applicants | New and existing coir units, including individuals, partnership firms, self-help groups (SHGs), co-operative societies, and private and public sector enterprises engaged in coir-related activities |
| Registration | The coir unit must be registered under the Coir Industry (Registration) Rules, 2008 |
| Udyog Aadhaar | The applicant must possess a valid Udyog Aadhaar registration (or its applicable successor registration, where required under prevailing regulations) |
| Eligibility for modernisation assistance | Existing coir units applying for modernisation assistance must have completed at least five years of successful operation |
| Previous subsidy | The applicant must not have availed financial assistance or subsidy under the Prime Minister's Employment Generation Programme (PMEGP), Coir Udyami Yojana (CUY), Technology Upgradation Fund (TUF), or Development of Production Infrastructure (DPI) Scheme for the same purpose |
| Machinery standards | The machinery proposed to be purchased must conform to the standards prescribed by the Bureau of Indian Standards (BIS) or the Coir Board, as applicable |
| MSME investment limits | The investment in the enterprise must fall within the limits prescribed for Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, as amended from time to time |
Coir Vikas Yojana subsidy
The Coir Vikas Yojana subsidy provides financial assistance to eligible coir units, workers and entrepreneurs to support the establishment, expansion and modernisation of coir-related activities. The subsidy is intended to encourage the adoption of improved technology, enhance productivity, generate employment and promote value addition across the coir sector.
The amount and nature of assistance available under Coir Vikas Yojana vary depending on the component of the scheme, the type of beneficiary and the purpose for which assistance is sought. Applicants must satisfy the prescribed eligibility conditions and comply with the guidelines issued by the Coir Board and the Ministry of Micro, Small and Medium Enterprises (MSME) to avail the subsidy.
States covered under the Coir Vikas Yojana
The Coir Vikas Yojana is implemented across India through the Coir Board and is available in states and Union Territories where eligible coir-related activities are undertaken. While the scheme primarily benefits traditional coir-producing regions, eligible beneficiaries from other parts of the country may also apply, subject to the applicable guidelines and eligibility criteria.
The scheme has a significant presence in major coir-producing states such as Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Odisha, Maharashtra, Goa and West Bengal, where coconut cultivation and coir-based industries are well established. Through financial assistance, skill development and technology support, the scheme aims to strengthen the coir sector and generate employment across these regions.
How to apply for Coir Vikas Yojana
The application process for Coir Vikas Yojana generally involves the following steps:
- Obtain the prescribed application form from the nearest Regional Office or Sub-Regional Office of the Coir Board, as the application process is generally carried out offline.
- Complete the application form and select the relevant component of the scheme for which assistance is sought.
- Attach the required documents, including:
- Proof of identity and address
- Registration certificate under the Coir Industry (Registration) Rules, 2008
- Valid Udyog Aadhaar (or its applicable successor registration)
- Project report, where applicable
- Machinery quotations or invoices, if applying for machinery assistance
- Bank account details
- Passport-sized photographs
- Any other documents specified by the Coir Board
- Submit the completed application and supporting documents to the concerned Regional Office or Sub-Regional Office of the Coir Board.
- The Regional or Sub-Regional Officer verifies the application and forwards eligible proposals, along with recommendations, to the Steering Committee for approval.
- Upon approval by the competent authority, the eligible subsidy or financial assistance is sanctioned.
- The approved financial assistance is credited directly to the beneficiary's bank account through the Direct Benefit Transfer (DBT) mechanism using the Public Financial Management System (PFMS).
Documents required for CVY application
Applicants typically need the following documents:
- Identity proof such as Aadhaar card or PAN card
- Address proof
- Coir industry registration certificate (if applicable)
- Bank account details
- Passport-sized photographs
- Project report or business details (if required)
- Training or experience certificates (if applicable)
- Any additional documents specified by the Coir Board
Conclusion
The Coir Vikas Yojana plays a vital role in strengthening India’s traditional coir industry by supporting artisans, promoting women entrepreneurship, and expanding market opportunities. By combining skill development with financial and marketing assistance, the scheme ensures sustainable growth of the sector.
Along with such government support, entrepreneurs may also require additional funding for expansion and operations. In such cases, exploring options like business loans can be useful. It is important to review the business loan interest rate before borrowing. Additionally, using a business loan EMI calculator can help in planning repayments effectively.
By combining sector-specific schemes like CVY with proper financial planning, businesses can achieve long-term stability and growth.
