MSME- II- Semester

Policies, Subsidies and Schemes in

MSME
-Sumera Naaz
July 2016

Assistant Professor
Sree Chaitanya PG college
Department of Business
Management
Karimnagar

Subsidy Schemes
To promote the development of the industrial sector, especially MSME sector, the government has introduced various schemes that
provide financial subsidy to the eligible enterprises. Some of these subsidy schemes are specifically for certain industrial sectors, while
some of them like CLCSS are available for a wide range of industries.
Some of the major subsidy schemes of the government and public institutions are provided below. These can be categorized as follows:

Subsidy Schemes for Specific Industries

Textile Industry Technology Upgradation Fund Scheme (TUFS)
Ministry of Textiles introduced the TUFS for textiles and jute industry in April 1999 to facilitate induction of state of the art technology
by the textile units.
The benefits under the scheme include:
1. 5% interest reimbursement of the normal interest charged by the lending agency on RTL, or
2. 5% exchange fluctuation (interest & repayment) from the base rate on FCL, or
3. 15% credit linked capital subsidy for SSI sector, or
4. 20% credit linked capital subsidy for powerloom sector (An option for front ended subsidy provided w.e.f. 1st October, 2005), or
5. 5% interest reimbursement plus 10% capital subsidy for specified processing machinery.
6. IDBI, SIDBI and IFCI were the nodal agencies for NonSSI textile sector, SSI textile sector and Jute sector respectively. However, w.e.f.
1st October, 2005, 13 additional nodal banks have been appointed under TUFS for determining eligibility & releasing the subsidy for
the cases financed by them.

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Subsidy Schemes
Food Processing Industry Scheme
For Technology Upgradation/ Establishment/ Modernization for Food Processing Industries
This Scheme covers the following activities:
1. Setting up/expansion/modernization of food processing industries covering all segments viz fruits & vegetable, milk product, meat,
poultry, fishery, oil seeds and such other agri- horticultural sectors leading to value addition and shelf life enhancement including
food flavours and colours, oleoresins, spices, coconut, mushroom, hops.
2. The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil work subject to a maximum of Rs.
50 lakh in General Areas and 33.33% upto Rs. 75 lakh in Difficult Areas.
Leather Industry Integrated Development of Leather Sector (IDLS)

The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather products units to upgrade leading to
productivity gains, rightsizing of capacity, cost cutting, design and development simultaneously encouraging entrepreneurs to diversify
and set up new units The financial assistance under the Scheme will be investment grant to the extent of 30% of cost of plant and
machinery for SSI and 20% of cost of plant and machinery for other units (i.e. non small scale units) subject to ceiling of Rs.50 lakh for
technology up gradation /modernization and/or expansion and setting up a new unit.
The rate of assistance would be @ 20% for all units (both SSI and NonSSI) above Rs.50 lakhs subject to ceiling of Rs.2 crore.
The nodal agency for release of assistance, monitoring and interface and coordination with FIs, Banks and the Government is SIDBI.

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Subsidy Schemes
Coir industry
Rejuvenation, Modernization and Technology Upgradation of the Coir Industry (REMOT)
A Central Sector Scheme on REMOT of the Coir Industry was launched during 2007- 08, on a pilot basis, to facilitate the sustainable
development of the Spinning and Tiny/Household Weaving Units of the coir industry by providing proper work sheds and enabling
replacement of traditional age old ratts with motorized ratts in the Spinning sector and replacement of traditional looms with the
mechanized looms in the Tiny/Household sector in the first phase, during XI Plan.
The main objectives of the scheme include modernization of Coir industry by adoption of modern technology in production and
processing of Coir in the spinning and weaving sectors Upgradation of the production and processing technology for improving the
productivity and quality and increasing the efficiency and productivity for enhancing the earnings of the workers and income of
spinners/ tiny household sectors, among others.
The norms of assistance are as below: Spinning unit: The financial assistance or government grant/subsidy would be 40% of the project
cost subject to a maximum of Rs. 80,000 (Rupees eighty thousand only) per unit. Tiny/ household unit: The financial assistance or
government grant/subsidy would be 40% of the project cost subject to a maximum of Rs. 2,00,000 (Rupees two lakh only) per unit.
Extension of Financial Assistance to Coir units in the Brown Fibre sector
The Coir Board runs a scheme for financial assistance to the coir units in the brown fibre sector. The rate of financial assistance
under the scheme is 25% of the cost of equipments and infrastructural facilities subject to certain ceiling limits based on the type of
unit.

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Subsidy Schemes
Coir industry
Scheme for Extension of Financial Assistance for Generator Set / Diesel Engine
The purpose of the scheme is to give one time subsidy to fibre/ curled coir production units in the brown fibre sector to carry out
production at periods of power cut/ low voltage and to ensure supply of brown fibre and curled coir to meet the requirements of
rubberized coir products, coir rope, yarn and mats and matting sectors.
The quantum of subsidy for one unit will be 25% of the cost of generator set subject to a maximum of Rs.50,000/.
This will be a one time financial assistance and will be granted on the basis of expenditure incurred by the unit.

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Other Subsidy Schemes of the Central Government

Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
The Scheme was launched in October, 2000 and revised w.e.f. 29.09.2005. The revised scheme aims at facilitating Technology
Upgradation of Micro and Small Enterprises by providing 15% capital subsidy (12% prior to 2005) on institutional finance availed by
them for induction of well established and improved technology in approved subsectors/ products. The admissible capital subsidy
under the revised scheme is calculated with reference to purchase price of Plant and Machinery. Maximum limit of eligible loan for
calculation of subsidy under the revised scheme is also been raised Rs. 40 lakhs to Rs. 100 lakh w.e.f. 2909.2005.
The Small Industries Development Bank of India (SIDBI) and the National Bank for Agriculture and Rural Development (NABARD) will
continue to act as the Nodal Agencies for the implementation of this scheme.
Quality Upgradation/Environment management for small scale sector through incentive for ISO 9000 /ISO 14001 /HACCP
Certifications In order to enhance the competitive strength of the small scale sector, the Government introduced an incentive
scheme for their technological upgradation/quality improvement and environment management. The scheme provides incentive to
those small scale/ ancillary undertaking who have acquired ISO 9000/ISO 14001/HACCP certifications. The scheme for ISO 9000
reimbursement in operation since March, 1994 has now been enlarged so as to include reimbursement of expenses for acquiring
ISO 14001 certification also.
The Scheme envisages reimbursement of charges of acquiring ISO9000/ ISO14001/ HACCP certifications to the extent of 75% of the
expenditure subject to a maximum of Rs. 75,000/in each case. The Scheme is valid upto 31st March 2012.

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Market Development Assistance Scheme for MSME The scheme offers funding for participation by manufacturing Small &
Micro Enterprises in International Trade Fairs/ Exhibitions under
MSME India stall sector specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian
Export
Organisation initiating/ contesting antidumping cases by MSME Associations and reimbursement of 75% of one time
registration fee (w.e.f. Ist January 2002) and 75% of annual fees (recurring) (w.e.f. Ist June 2007) paid to GSI (Formerly EAN
India) by Small & Micro units for the first three years for bar code.
The permissible subsidy is as below:
The Govt. of India will reimburse 75% of air fare by economy class and 50% space rental charges for Micro & Small
manufacturing
enterprises of General category entrepreneurs. For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region
Govt. of India will reimburse 100% of space rent and economy class air fare. The total subsidy on air fare & space rental
charges will be restricted to Rs.1.25 lakhs per unit. To know more details, click here.
Financial Assistance on Bar Code
The basic objective of financial assistance is to enhance the marketing competitiveness of Micro & Small Enterprises (MSEs)
by way of:
Providing 75% of onetime registration fee and annual recurring fee (for first three years) paid by MSEs to GS1 India.
Popularizing the adoption of bar codes on large scale amongst MSEs, and Motivating and encouraging MSEs for use of bar
codes through conducting seminars on Bar Code, etc. To get more details on the scheme, click here.

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Collateral Free Loans Under CGTMSE Scheme

Micro and Small Enterprises, particularly the first generation of entrepreneurs, face difficulties in accessing bank credit because of their
inability to provide adequate collateral security for loans. Considering this, the Government launched the Credit Guarantee Fund Scheme
for Small Industries on 30th August, 2000 with a view to alleviating the problem of collateral security and impediment to flow of credit to
Micro and Small Scale Industries (SSI) sector.
The Government approved the Credit Guarantee Fund Scheme for Small Industries on 19th May, 2000 with the objective of making
available credit to SSI units, particularly tiny units, for loans up to Rs. 10 lakhs without collateral/third party guarantees (This is at present
applicable for loans upto Rs 100 lakhs). The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of
India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit
Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000 and is operational with
effect from 1st January, 2001. The main objective is that the lender should give importance to project viability and secure the credit facility
purely on the primary security of the assets financed. The other objective is that the lender availing guarantee facility should endeavor to
give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency.
The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit
facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/
85 per cent of the credit facility.
Since the formation of the Trust, there has been a substantial growth in the number of proposals and credit amount disbursed under the
scheme. The following table provides the operational highlights of CGTMSE since FY01.

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SME Division Scheme

1. Scheme for 'Providing financial assistance on International Cooperation'
Related Scheme
International Cooperation Scheme
The Scheme would cover the following activities:
(a) Deputation of MSME business delegations to other countries for exploring new areas of technology infusion/upgradation,
facilitating joint ventures, improving market of MSMEs products, foreign collaborations, etc.
Description
(b) Participation by Indian MSMEs in international exhibitions, trade fairs and buyer-seller meets in foreign countries as well as in
India, in which there is international participation.
(c) Holding international conferences and seminars on topics and themes of interest to the MSME.
IC Scheme provides financial assistance of up to 95% of the airfare and space rent of entrepreneurs. Assistance is provided on the
Nature of assistance basis of size and the type of the enterprise. It also provides assistance for common expenses of the delegation like freight &
insurance, local transport, secretarial/communication services, printing of common catalogue etc.
(a) State/Central Government Organisations;
(b) Industry/Enterprise Associations; and
Who can apply?
(c) Registered Societies/Trusts and Organisations associated with the promotion and development of MSMEs
2. Scheme for 'providing financial assistance for performance and credit rating under PCR Scheme
Related Scheme
Performance and Credit Rating Scheme
The objective of the Scheme is to create awareness amongst micro & small enterprises about the strengths and weaknesses of their
operations and also their credit worthiness. The Scheme is implemented by National Small Industries Corporation (NSIC) and Rating
Description
under the scheme is being carried out through empanelled rating agencies i.e. CRISIL, ONICRA, ICRA, SMERA, Brickwork, India
Ratings (earlier known as FITCH) and CARE. The enterprises are at liberty to select any of the rating agencies empanelled with NSIC.
(a) 75% of the rating fee subject to a maximum of Rs. 25,000/- will be reimbursed to the micro or small enterprise having a turnover
upto Rs.50 lakh
(b) 75% of the rating fee subject to a maximum of Rs. 30,000/- will be reimbursed to the micro or small enterprise having a turnover
Nature of assistance
above Rs.50 lakh to Rs.200 lakh.
(c) 75% of the rating fee subject to a maximum of Rs. 40,000/- will be reimbursed to the micro or small enterprise having a turnover
above Rs.200 lakh.

SME Division Scheme

3. Scheme for providing establishment of new institutions (EDIs), strengthening the infrastructure for EDIs under ATI Scheme
Related Scheme
Assistance to Training Institutions Scheme
Assistance shall be provided to training institutions in the form of capital grant for creation/strengthening of infrastructure and
Description
programme support for conducting entrepreneurship development and skill development programmes.
Maximum assistance for creation or strengthening of infrastructure will be Rs. 150 lakhs on matching basis, not exceeding 50% of
project cost. However, for the North Eastern region (including Sikkim), Andaman & Nicobar and Lakshadweep, the maximum
Nature of assistance assistance on matching basis would be Rs. 270 lakhs or 90% of project cost, whichever is less.
Maximum assistance per trainee per hour for entrepreneurship development and skill development programmes is Rs 50 (Rs. 60 for
NER, A&N and Lakshadweep)
Any State/Union Territory Government, Training Institutions, NGOs and other development agencies can apply for assistance for
creation or strengthening of infrastructure.
Who can apply?
Training Institutions who wish to conduct training programmes under the Scheme will have to enroll themselves with any of the
three National Level EDIs of the Ministry viz, NIESBUD, Noida; IIE Guwahati and NIMSME, Hyderabad.
4. Scheme for providing financial assistance on marketing support under Marketing Assistance Scheme
Related Scheme
Marketing Assistance Scheme
The assistance is provided for the following activities:
A. Organizing Exhibitions abroad and participation in International Exhibitions/Trade Fairs
B. Co-sponsoring of Exhibitions organized by other organisations/ industry associations/agencies
Description
C. Organizing Buyer-Seller Meets, Intensive Campaigns and Marketing Promotion Events
Financial assistance of up to 95% of the airfare and space rent of entrepreneurs. Assistance is provided on the basis of size and the type of
the enterprise.
Nature of assistance
Financial assistance for co-sponsoring would be limited to 40 % of the net expenditure, subject to maximum amount of Rs. 5 lakh
Who can apply?
MSMEs, Industry Associations and other organizations related to MSME sector
How to apply?

The applications/proposals for seeking assistance under the scheme shall be submitted to the nearest office of National Small
Industries Corporation, with full details and justification.

ARI Division Scheme

5. Scheme for providing financial assistance to set up new enterprises under PMEGP
Related Scheme Prime Minister Employment Generation Programme (PMEGP)
The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the National level. At the State level,
the Scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries
Centres (DICs) and banks. The Government subsidy under the Scheme is routed by KVIC through the identified Banks for eventual
distribution to the beneficiaries / entrepreneurs in their Bank accounts.
Description
The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.
Beneficiarys contribution (of
Categories of beneficiaries under PMEGP
project cost)
Rate of Subsidy (of project cost)
Area (location of project/unit)
Urban
Rural
General Category
10%
15%
25%
Special (including SC / ST / OBC / Minorities / Women, Ex-servicemen,
Physically handicapped, NER, Hill and Border areas, etc.
5%
25%
35%
Nature of
assistance
The balance amount of the total project cost will be provided by Banks as term loan as well as working capital.
Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and
above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including
those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies
Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already
Who can apply? availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give
advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries
How to apply? desirous of establishing the enterprise/ starting of service units under PMEGP.
The beneficiaries can also submit their application online at http://www.kviconline.gov.in/pmegp/pmegponlineappand take the
printout of the application and submit the same to respective offices along with Detailed Project Report and other required
documents.

ARI Division Scheme

6. Scheme for providing insurance cover to khadi artisans under Janshree Bima Yojana
Related Scheme Janshree Bima Yojana for khadi artisans
Description

Nature of
assistance
Who can apply?
How to apply?

To provide insurance cover to khadi artisans, a scheme of group insurance in the name of Khadi Karigar Janashree Bima Yojana (JBY) was
launched on 15 August 2003. This scheme was formulated by KVIC in association with the Life Insurance Corporation of India (LIC).
For death due to: (1) natural causes Rs.20,000; and (2) accident Rs.50,000.
For permanent disability (loss of two eyes or two limbs) Rs.50,000. For partial disability (loss of one eye or one limb) Rs.25,000.
Free Add-on benefit: Scholarship of Rs.300 per quarter for children the children of Khadi Karigar, studying in 9th to 12th standard subject
to a maximum of 2 children per family.
Khadi Karigar (Spinners and Weavers) aged between 18 years and 59 years and below and marginally above poverty line.
Nominee of the deceased Khadi Karigar to submit original death certificate to Pension Group Schemes Department of LIC of India through
the Khadi institution under which the deceased was a member.

7. Scheme for providing financial assistance to Khadi institutions under MDA

Related Scheme Market Development Assistance (MDA)
Government has introduced in 2010, a flexible, growth stimulating and artisan oriented MDA Scheme, in place of the erstwhile system of
Rebate. Under MDA, financial assistance is provided to institutions @ 20% of the value of production of khadi and polyvastra, to be shared
among artisans, producing institutions and selling institutions in the ratio 25:30:45. MDA provides institutions flexibility to use the
assistance for improving the outlets, products and production processes, besides giving incentive to customers, etc.
Description
Nature of
MDA shall be allowed @ 20% on cost of production of Khadi (Cotton, Silk, Woollen) and Polyvastra to the extent of production target
assistance
approved by the Standing Finance Committee (SFC) of KVIC for the year.
Who can apply? The Khadi institutions, having valid Khadi certificate and categorized as A+, A, B and C, are only eligible to avail MDA grant from KVIC.
The total amount of MDA on production will be claimed by the producing institution from the KVIC and will be distributed amongst the
stake holders viz. spinners and weavers, producing institutions and selling institutions in the ratio 25%, 30% and 45% respectively.
Producing institutions shall submit quarterly claim of MDA based on the actual production achieved during the preceding quarter of the
financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of audited accounts by the
How to apply? Chartered Accountants. MDA shall be preferably reimbursed electronically by State/ Divisional office of KVIC on quarterly basis.

ARI Division Scheme

8. Scheme for providing financial assistance for R & D activities of Coir Board under Central Sector Plan Scheme of Science & Technology (S&T) of the Coir
Board
Related Scheme Plan (S&T), Coir Board (CSS of S&T of the Coir Board.)
Coir Board has been mandated with undertaking, assisting or encouraging scientific technological and economic research and
maintaining and assisting one or more research institutions.
Description
Two R&D institutes namely; CCRI Alleppey and CICT Bangalore are functioning under Coir Board.
Grant is released to the two R&D institutes; CCRI Alleppey and CICT Bangalore by the Government through the Coir Board for R&D
activities and creation of infrastructure & Civil construction / repairs etc. relating to R&D activities only as specified in the Action Plan
Nature of
assistance
under different Programme Heads of the Scheme.
Who can apply?
Assistance is provided only to the two R&D institutes functioning under the Coir Board
9. Scheme for providing financial assistance to Coir units under REMOT
Related Scheme Rejuvenation, Modernization and Technology Upgradation of Coir Industry (REMOT)
A credit linked subsidy scheme for setting up of Coir Units with project cost upto Rs.10 lakhs plus one cycle of working capital which shall
not exceed 25% of the project cost. Working Capital will not be considered for subsidy.
Description
The funding pattern of the Scheme is:
Nature of
assistance
Bank Loan / Credit Role - 55%, Government Grant (Margin Money subsidy) - 40%, Beneficiaries Contribution - 5%
i)Any individual above 18 years of age with Indian Citizenship.
ii) There will be no income ceiling for assistance for setting up of project under REMOT Scheme.
iii) Assistance under the Scheme is only for projects for the production of coir fibre /yarn/products etc. coming under coir sector.
iv) Assistance will be made available to individuals, Companies, Self Help Groups, NGO, Institutions registered under Societies Registration
Act 1860, Production Co-operative Societies, Joint Liability Groups and Charitable Trust.
Who can apply?
The SC/ST, Women, NER and Andaman and Nicobar Island and Lakswadweep beneficiaries will be given priority
The applications under the Scheme can be collected from Coir Board Offices, DICs, Coir Project Offices, Panchayati Raj Institutions and the
Nodal Agencies approved by the Board for this purpose. The forms can also be downloaded from the Coir Board website and have to be
How to apply?
submitted directly to the Coir Board Field Offices or through the DICs.

ARI Division Scheme

10. Scheme for providing financial assistance to Coir units for export under Plan (General)
Related Scheme CSS of Export Market Promotion
Coir Board is implementing the Export Market Promotion Scheme for adoption of strategic and aggressive product specific and market
specific promotional programmes for popularizing coir and coir products in markets abroad, supporting the export oriented industry on
modernization programme and to attain overall and sustainable development of Indian Coir Industry by participating in international fairs /
product promotion programmes/ seminars etc. and to assist the entrepreneurs to participate in such programmes through export market
Description
development assistance scheme.
TA financial assistance of upto Rs.2.00 lakhs is provided to the eligible coir exporters to participate in the international fairs/product
promotion programmes etc. Assistance for publicity material up to 25% of the production cost with over all ceiling of Rs.15000/- is also
Nature of
assistance
admissible.
All micro, small and medium exporters, with FOB turnover of less than Rs.2.00 crore worth coir and coir products in the previous year and
micro, small & medium entrepreneurs of coir and coir products, registered with the Coir Board, would be eligible for assistance under the
scheme, provided they have not availed the facility from any other source for the same purpose or participated three times in the same
Who can apply? exhibition to the same destination thrice with government assistance.

How to apply?

The applications under the Scheme can be collected from Coir Board Offices, DICs, Coir Project Offices, Panchayati Raj Institutions and the
Nodal Agencies approved by the Board for this purpose. The forms can also be downloaded from the Coir Board website and have to be
submitted directly to the Coir Board Field Offices or through the DICs.

ARI Division Scheme

11. Scheme for providing training to the aspiring Coir workers for capacity development and quality improvement under Plan (Gen eral)
Related Scheme
Skill Upgradation & Quality improvement and Mahila Coir Yojana
Objective of the scheme is to train personnel for the cadres of supervisors/ instructors/ artisans to meet the requirement of skilled
man power for the development of coir industry. Transfer of technology to non-traditional areas through development of skill of coir
workers is another important objective of the scheme. Training programmes and EDPs(Entrepreneurs Development Programmes) are
conducted by the Coir Board through its Regional training centers
Mahila Coir Yojana(MCY), in particular, aims at women empowerment through provision of spinning equipment at subsidised rate
after appropriate skill development(training) programmes
Description
The training programme is for two months duration and a monthly stipend of Rs.750/- is now provided to the trainees. The
honorarium for the trainer is limited to Rs. 5, 000/- per month. An amount of Rs.250/- per head per month is be provided as financial
asistance to the training sponsoring agency to meet the operational cost.
Under MCY Coir Board provides 75% cost of the motorised/ motorised traditional ratts as one time subsidy subject to a ceiling of
Nature of assistance Rs.7,500/- in the case of motorised ratt and Rs.3200/- for motorised traditional ratts.
All micro, small and medium exporters, with FOB turnover of less than Rs.2.00 crore worth coir and coir products in the previous year
and micro, small & medium entrepreneurs of coir and coir products, registered with the Coir Board, would be eligible for assistance
under the scheme, provided they have not availed the facility from any other source for the same purpose or participated three times
in the same exhibition to the same destination thrice with government assistance.
Who can apply?
Selection of trainees for in-house training at NCT&DC will be made by inviting applications through advertisements in print and
electronic media and through recommendation from the authorities of the coir producing States
Selection of trainees for training programmes conducted at Regional Extension Centre will be made by the officer-in-charge of the
centre through sponsoring of candidates by Trade Associations, Unit owners, Industries Department, NGOs, Co-operatives etc
How to apply?

ARI Division Scheme

12. Scheme for providing financial assistance to Coir units for infrastructure development under Plan (General)
Related Scheme Development of Production Infrastructure (DPI) Scheme
Coir Board is implementing the Plan Scheme Development of Production Infrastructure with the objective of providing modern infrastructure
facilities to the coir production units resulting in the improvement of productivity and quality and also creation of employment opportunities
Description
especially for women in the rural areas.
Under the DPI Scheme the Coir Board provides financial assistance to the coir production units @ 25% of the cost of equipments subject to a
maximum of Rs.6 lakhs for setting up of defibering unit, Rs. 4 lakhs for automatic spinning unit and Rs. 5 lakhs for others including coir pith. For a
Nature of
composite or a multiple unit the maximum ceiling of financial assistance is Rs. 9 lakhs. The scheme also provides for extending financial assistance
assistance
upto Rs. 2 lakhs for modernization/ renovation of the existing units.
All new coir processing units registered with Coir Board under Coir Industry (Registration) Rules, 2008 and registered with the DIC of the respective
Who can apply? region of the entire coir sector of the country with project cost exceeding Rs. 5 lakh each are eligible for assistance under the scheme.
The unit shall submit the application in the prescribed format for grant of financial assistance for new units under the scheme within 6 months from
the date of commencement of production of the unit. The date of commencement of production should be supplemented by a Certificate issued by
How to apply? the General Manager, District Industries Centre of the respective area.
13. Scheme for providing insurance cover to Coir workers under Plan (General)
Related Scheme
Welfare Measures Scheme
The Coir Board is implementing the Plan Scheme Welfare Measures - Coir Workers Group Personal Accident Insurance Scheme with the
objective of providing financial compensation to deceased/disabled coir worker/nominee. The entire insurance premium is paid by the Coir
Board to the Insurance Company selected by calling quotations. The financial compensation is provided by the Insurance Company to the
Description
disabled coir workers or nominee of the disabled or deceased coir workers.
Compensation payable under the Scheme are given below.
1. Accident death : Rs.50,000/- 2. Permanent Total disability : Rs.50,000/- 3. Permanent Partial Disability : Rs.25,000/Nature of assistance 4. Provision for finger cut : Depending upon the finger and limited to applicable percentages of capital sum insured.
Coir workers aged 18 years and above engaged in the industry (no upper age limit) are covered under the Insurance Scheme. The disabled coir
worker or nominee of the disabled / deceased coir worker can apply for the claim. Considering the welfare of the women who form majority of
the group proposed, the accident in their case will include death and disablement arising out of and traceable to sterilization and consequent
Who can apply?
complications, arising out of pregnancy, child birth, caesarian hysterectomy, removal of breast as well as murder and rape etc

DC MSME Scheme

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