Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units

Coir Udyami Yojana is a credit-linked subsidy programme for anyone who wants to build coir manufacturing capacity in India. The Coir Board implements it under the Ministry of Micro, Small and Medium Enterprises (MSME).

Rather than handing over a standalone grant, the programme pairs a government subsidy with a bank term loan. A promoter puts in a small share of the project cost, the Coir Board contributes a subsidy, and the bank funds the balance as credit. The money goes towards setting up units that produce coir fibre, coir yarn or coir products.

Because coir is a traditional rural industry, the programme is deliberately inclusive. It is designed to create jobs in rural pockets and gives extra attention to applicants from the SC/ST communities, women, youth and the North Eastern Region. There is no ceiling on how much an applicant earns, so income is not a barrier.

Applications run on a rolling basis, with no fixed closing date. All paperwork is routed through the Coir Board's Field Offices, and the scheme's operational guidelines spell out the form, the subsidy calculation and the steps that follow.

• Admissible project cost up to ₹10 lakh, plus one working capital cycle capped at 25% of project cost
• 40% Coir Board subsidy (up to ₹4 lakh) on eligible project cost
• 55% bank credit, up to ₹5.5 lakh, with a 5% beneficiary contribution
• Total funding can reach up to ₹9.5 lakh per project
• No income ceiling; applicants must be Indian citizens aged 18 or above
• Rolling applications through the nearest Coir Board Field Office

Who can apply

The scheme is open to Indian citizens who are at least 18 years old. There is no income ceiling, so applicants are not screened on earnings.

Entity types accepted

• Individuals
• Companies
• Self-Help Groups (SHGs)
• Non-Governmental Organizations (NGOs)
• Institutions registered under the Societies Registration Act
• Production Co-operative Societies
• Joint Liability Groups
• Charitable Trusts

Project condition

The proposal has to be for producing coir fibre, coir yarn or coir products.

Two important filters

• You must not have already received a subsidy from the Government of India or any State Government for the same purpose under another scheme.
• Only one member of a family may apply — either the applicant or the spouse, not both.

Priority groups

SC/ST applicants, women, youth and applicants from the North Eastern Region receive special focus under the scheme.

Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units is open to startups at any stage. It is open to startups registered anywhere in India.

Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

How the money is structured

The scheme works as a package, not a single payment.

• Admissible project cost: up to ₹10 lakh (₹10,00,000), plus one cycle of working capital that cannot exceed 25% of the project cost. Working capital is excluded when the subsidy is calculated.
• Coir Board subsidy: 40% of the eligible project cost, which works out to a maximum of ₹4 lakh at the ₹10 lakh ceiling.
• Bank term loan: 55% of the project cost, up to ₹5.5 lakh.
• Beneficiary contribution: 5% of the project cost.

Combined ceiling

Adding the subsidy and the bank credit together, total support can reach ₹9.5 lakh.

Beyond the cash

• A 5-day Entrepreneurship Development Programme (EDP) is part of the package and must be completed to move ahead.
• The Coir Board provides facilitation support to help applicants work through the application and bank linkage process.

No equity

Both components are non-dilutive — the Coir Board subsidy is a grant and the bank portion is a term loan that is repaid. No ownership stake in the venture is given up.

Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units is offered by Ministry of MSME, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Every proposal follows a defined route before money moves.

• Coir Board Field Office scrutiny: The application is examined first at the Field Office for completeness and eligibility.
• Regional Level Selection Committee: Eligible cases are forwarded to this committee, which evaluates the proposal and, if satisfied, approves it.
• Bank credit linkage: An approved application is then recommended to a financial institution for funding. Final selection and sanction rest with the bank and its own due diligence.
• Entrepreneurship Development Programme: The mandatory 5-day EDP is completed either before or after submission, but always before the bank recommendation stage.
• Beneficiary contribution: Once the bank approves, the applicant deposits the 5% contribution within 30 days.
• Subsidy deposit: The Coir Board then places the 40% subsidy with the bank.
• Loan disbursement: The bank releases the term loan within 30 days of receiving the subsidy.
• Project execution: The approved project has to be completed within 6 months.
• Verification: The Coir Board and the bank carry out a physical verification before the subsidy is finally adjusted.

Before you apply to Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units is best suited for startups in India seeking non-dilutive funding of ₹9.5L. If that describes your startup, review the eligibility criteria above before applying.