Scheme for Extension of Financial Assistance for Generator Set / Diesel Engine
This scheme is administered by the Coir Board under the administrative control of the Ministry of Micro, Small & Medium Enterprises . The scheme is intended to provide one-time financial assistance to coir processing units in the brown-fibre sector for installation of generator sets/diesel engines to enable production during power cuts or low-voltage situations. This helps your unit maintain continuity of production, especially in rural power supply contexts.
Key Features
- One-time subsidy assistance for generator set / diesel engine installation: The scheme supports units by reimbursing part of the cost of generator or diesel engine that is required for power backup in coir units. Example: A coir fibre extraction unit facing frequent power cuts may install a generator set and claim subsidy.
- Subsidy rate: 25% of cost subject to a maximum ceiling: The subsidy is provided at the rate of 25 % of the cost of the generator/diesel engine, but only up to a specified maximum (e.g., up to ₹ 50,000) for one unit.
- Eligible for brown-fibre coir units registered with Coir Board: The beneficiary unit must be in the brown-fibre segment of the coir industry, registered under the Coir Industry Rules with Coir Board, and have proper SSI registration.
- Condition: Valid registration, valid power supply, and capacity of generator set as per unit requirement: The unit must have a valid registration, must show power connection and the generator set capacity must align with unit’s requirement.
- Assistance released after installation and production commencement: The subsidy is released only after the unit installs the generator/diesel engine, starts production and submits required proofs.
Financial Assistance
Eligibility Criteria
Who can apply:
- Units registered with the Coir Board under the Coir Industry Rules 1958 in the brown fibre sector.
- Units that also hold valid SSI/Small scale registration from the State Industries Department.
- Units must obtain a No Objection Certificate from the State Electricity Board for installing the generator set/diesel engine, and three-phase power supply should already be available at the unit site.
Who cannot apply:
- Units under the cooperative fold are not eligible.
- Units that procure or install the generator/diesel engine before obtaining sanction under the scheme may be ineligible for assistance.
- Units not registered with the Coir Board or failing to meet raw-material/fibre availability criteria may be disqualified.
Documents Required
- Coir Board registration certificate.
- SSI/State Industries registration certificate.
- Application form .
- NOC from State Electricity Board for installation of generator/diesel engine.
- Cost estimate/invoice for generator set/diesel engine.
- Proof of three-phase power supply to the unit .
- Bank account details for subsidy disbursement.
- Undertaking that unit belongs to brown fibre sector and meets eligibility criteria.
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: Coir-units in brown fibre sector seeking power infrastructure subsidy.
Option 2: Government Process via Coir Board
- Confirm your unit is registered with the Coir Board and has SSI/State industries registration.
- Prepare details: capacity of generator set/diesel engine required, power supply status, NOC from electricity board, cost estimate/invoice.
- Submit application in the prescribed format to the Regional/Sub-Regional Officer of the Coir Board via the DIC recommendation
- After approval, install the generator/diesel engine as per norms. Claim reimbursement of the subsidy once expenditure is incurred and verified.
- Compliance: Maintain asset usage for the stipulated period; unit will be subject to monitoring by Coir Board.
Option 3: Via Bank/Financing Institution
If you are financing the generator/diesel engine through a bank loan, you may coordinate with the lender to ensure the subsidy claim aligns with your loan disbursement/asset installation schedule.