Extension of Financial Assistance to Coir units in the Brown Fibre sector

This scheme is administered by the Coir Board . The scheme provides financial assistance to coir-processing units operating in the “brown fibre” segment for setting up new units or upgrading existing units with machinery, infrastructure etc. The purpose is to strengthen the coir industry by enhancing productivity, modernising infrastructure, supporting units outside the cooperative fold, and thereby benefiting entrepreneurs in the coir sector.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Eligible units: coir units registered under Coir Industry Rules: To avail the benefit you must be registered with the Coir Board under the Coir Industry Rules and also registered with the State’s industries department.
Assistance at rate of 25% of cost of equipment/infrastructure subject to ceilings: The scheme typically offers assistance up to 25 % of the cost of equipment and infrastructure facilities for eligible units under brown-fibre sector.
Applies to new units or units outside the cooperative fold in brown-fibre sector: The scheme emphasises units in the “brown fibre” segment and assistance is extended only to non-cooperative units in this particular extension of assistance to brown fibre sector.
Specific ceilings for different types of units: There are ceilings in terms of maximum subsidy amount depending on unit type: e.g., for a coir fibre extraction unit the maximum assistance might be Rs. 6 lakh for new units; for automatic spinning units Rs. 4 lakh etc.
Project cost excludes land cost; installation must commence production to claim assistance: The scheme excludes land cost from project cost when computing subsidy; assistance is released after the unit commences production and only for new plant/machinery/equipment/infrastructure as per specification.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Subsidy/Grant for eligible equipment & infrastructure	25% of total cost of equipment or infrastructure facilities	Example: If your brown-fibre unit invests ₹ 20 lakh in eligible new machinery/infrastructure, you may get assistance of 25% of 20 lakh = ₹ 5 lakh, subject to the ceiling for your unit type.
Maximum ceiling varied by unit type	For example, New fibre extraction unit: up to Rs 6 lakh; automatic spinning: up to Rs 4 lakh; composite/multiple unit: up to Rs 9 lakh.	Example: If you set up a composite unit producing multiple items, your maximum assistance could be capped at ₹ 9 lakh even if 25% yields higher.
Reimbursement mode after installation	Assistance released only after the unit installs the eligible plant & machinery and commences production.	Example: You install the machinery, start production, submit proof – only then you will receive the grant.

Eligibility Criteria

Who can apply:

Coir industry units involved in the brown fibre sector: e.g., extraction of coir fibre, spinning of coir yarn, manufacturing units using brown fibre as feedstock.
Units must be registered with the Coir Board under the Coir Industry Rules.
Units should be registered with the State Industries Department in which the unit is located.
Project must be located in an area with adequate availability of coconut husk / coir raw material for extraction/spinning.

Who cannot apply:

Units under the cooperative fold are not eligible for assistance under this specific stream.
Units that do not belong to the brown fibre segment may not be eligible.
Projects that start before obtaining the sanction may risk loss of subsidy/assistance .
Non‐registration or invalid registration with Coir Board or State authorities may disqualify the unit.

Documents Required

Copy of Coir Board Registration certificate & State Industry Department registration.
Application form .
Project cost estimate with breakup: workshed/soaking tank/drying yard/machinery etc.
List of machinery to be procured and infrastructure works.
Proof of raw material availability or access.
Bank account details for subsidy disbursement.
Undertaking of the unit that it has not availed other subsidies for same machinery and will maintain assets for stipulated period.
For modernisation : past production/financials of unit may be required.

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Brown fibre coir units seeking subsidy for equipment/infrastructure upgrade.

Option 2: Government Process via Coir Board

Ensure your coir unit is registered under the Coir Industry Rules with the Coir Board and with the State’s Industry Department.
Prepare project details: equipment/machinery list, infrastructure works, cost estimates, raw material availability, etc.
Submit the application in prescribed format along with required documents to the Regional/Sub-Regional Office of the Coir Board.
On verification and sanction, the subsidy/incentive is released as per guidelines to the unit after undertaking the project.
The unit must adhere to conditions such as non‐mortgaging of assisted assets, minimum operation period, etc.

Option 3: Via Bank/Financing Institution Support
Although the scheme is a subsidy scheme, some units may coordinate with their term loan or finance provider to align with the assistance and ensure project financing meets scheme norms.