Operational Guidelines for COIR VIKAS YOJANA

OPERATIONAL GUIDELINES FOR COIR INDUSTRY TECHNOLOGY UPGRADATION SCHEME (CITUS)

The objective of the Coir Industry Technology Upgradation Scheme (CITUS) is to achieve the following objectives:

• Promote the development and installation of information technology, including enterprise resource planning (ERP).
• Facilitate the manufacturing of customer-centric high-value products.
• Enhance productivity and quality by providing modern infrastructure facilities to production units.
• Modernize existing coir units.
• Expand the industry to potential areas.
• Encourage the involvement of young entrepreneurs in the industry.
• Create more employment opportunities, particularly for women in rural areas.
• Facilitate the setup of new, state-of-the-art Coir Processing Units.
• Enhance the integration and competitiveness of the Coir Industry with modern technologies.
• Promote the enhanced utilization of available raw materials.
• Facilitate the adoption of eco-friendly production techniques.
• Achieve the target of a pollution-free coir industry through technological advancements.

Nodal Agency

• The Coir Board, Kochi, will serve as the Nodal Agency for this component. Implementation will be carried out through the Regional/Sub-regional offices of the Coir Board. Technical support, when required, will be provided by the Central Coir Research Institute (CCRI), Kalavoor, the Central Institute of Coir Technology (CICT), Bangalore, and other institutes involved in coir industry development and promotion. Monitoring of the component will be conducted periodically by the Coir Board and the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India.
• Applications for assistance under this component will be solicited by the Coir Board at regular intervals through nationwide advertisements, with particular emphasis in coconut-producing regions. Publicity efforts will also utilize various channels, including web-based electronic and IT tools, as well as collaboration with state/UT governments and industrial associations to raise awareness about the component.
• Applicants or beneficiary units seeking assistance under this component are required to submit their applications online, providing all relevant details and prescribed documents.
• The Regional/Sub-Regional Officers of the Board will conduct on-site inspections of the units, verify the documents, and recommend the appropriate level of incentive as per the guidelines. They will then forward their recommendations to the competent authority for the release of financial assistance. Applications for financial assistance will be thoroughly examined by these offices to ensure compliance with requirements. Applicants will be notified of the acceptance or rejection of their applications within 15 days from the date of receipt. In case of rejection, clear reasons will be communicated to the applicant.

Interventions under the component:

• This component offers assistance to entrepreneurs across various categories, including individuals, partnership firms, self-help groups (SHGs), associations, and enterprises from small-scale, medium-scale, cooperative, private, and public sectors. Assistance is provided for the production of value-added coir or coir-blended items, where coir is the dominant fiber. This support includes setting up new units or expanding existing capacity, limited to investment in new plant and machinery. Applications exceeding the investment limits prescribed for medium-scale enterprises in the MSME Act will not be considered for assistance under this component.
• Eligible coir units under this component are entitled to financial assistance for the procurement of eligible plant and machinery for modernization, upgrading, or establishing a new unit. The financial assistance amounts to 25% of the cost of admissible items of plant and machinery procured by the coir units, with an upper ceiling of Rs. 2.50 crores per coir unit/project.
• Financial assistance will be disbursed in Indian Rupees through Direct Benefit Transfer (DBT) mode and Public Finance Management System (PFMS) as reimbursement of the amount invested. The release of funds occurs after the coir unit installs the eligible machinery and commences operations. Applicants have the flexibility to procure plant and machinery from a financial institution, bank, leasing company, or through their own resources.

Eligibility

Newly established coir production/processing units are eligible to apply for assistance.

Coir production/processing units registered with the Coir Board under the Coir Industry (Registration) Rules, 2008, and possessing Udyog Aadhar are eligible to apply for financial assistance for modernization under this scheme.

A newly established unit that has applied for or availed assistance under this scheme must complete five years of successful operation before applying for modernization assistance.

The details are as follows:

1. Financial assistance under this component will be provided to the entire coir sector of the country. Units applying for assistance must fall within the investment limits prescribed for Small and Medium Enterprises under the MSME Act.
2. Applications, along with all relevant documents, are to be submitted online. Regional Officers/Sub-Regional Officers/In-charges of the Coir Board will conduct on-site inspections, verify all documents, assess the quantum of financial assistance, and recommend eligible cases to the Coir Board Headquarters for approval by the Competent Authority.
3. Equipment and motors eligible for assistance must meet the standards prescribed by the Bureau of Indian Standards (BIS).
4. The overall ceiling for computing financial assistance is Rs. 2.5 crores.
5. The prices of different machinery items will be subject to periodic review by a Technical Committee constituted by the Chairman of the Coir Board. The Committee will assess the probable costs of all components used in machinery production and update the list accordingly.
6. Machinery/equipment procured should adhere to BIS standards and can be sourced from the open market or imported for setting up high-tech coir processing units, provided the reasons for importation are justified.
7. Machinery suppliers must provide a performance guarantee for a minimum of two years. For imported machinery, units must submit certified documents from Customs Authorities/DGFT/Banks along with a performance certificate from the supplier.
8. For modernization projects, only the cost of newly installed/purchased machinery/equipment, power generators, material handling equipment, conveyors, etc., will be considered for calculating financial assistance.
9. Financial assistance under this component is available to entrepreneurs who have not received any Central Government subsidies under programs such as PMEGP, CUY, DPI, TUF, etc. An undertaking confirming non-availing of assistance under these programs must be furnished with the application.
10. Copies of original documents pledged with banks, attested by the bank manager, must be submitted with the application for assistance.
11. The applications for financial assistance, recommended by the Regional/Sub-Regional Officers of the Coir Board, will be reviewed by a Steering Committee established at the Board Headquarters by the Chairman of the Coir Board. This Committee will include representatives from the Central Coir Research Institute (CCRI) and the Central Institute of Coir Technology (CICT) of the Board, subject matter experts, and industry representatives. The Steering Committee will convene at least once every two months.
12. Despite applications being scrutinized on a first-come-first-served basis, contingent upon the submission of proper documentation, the selection of beneficiaries will be based purely on merit. Criteria for selection will be determined by the rankings assigned by the "Project Steering Committee."

Conditions for Grant of Financial Subsidy:

1. Coir production/processing units seeking assistance under this component must install eligible plant and machinery in their declared premises for the establishment of new units, expansion of existing units, or for upgrading and modernizing operations. This can be accomplished either through self-funding or by obtaining institutional credit.
2. Prior to acquiring and installing machinery, units must notify the Coir Board online regarding their intentions for expansion, upgrading, modernization, or establishment of new units. They must also submit a Detailed Project Report (DPR). The Coir Board, through entities such as the CCRI, CICT, or any other institution as deemed appropriate, will technically evaluate the proposed project/DPR/unit and inform the applicant of the eligibility for financial assistance. Upon examination and appraisal, the Coir Board will issue an in-principle approval (IPA) to the applicant. All cases will be deliberated and decided upon by the steering committee at the Board's Headquarters.
3. Applicants must submit claims within one year of the commencement of production (with an extension of up to 18 months under special circumstances), regardless of whether financing is sourced internally or through institutional credit.
4. The Chairman of the Coir Board has the authority to condone delays in submitting applications on a case-by-case basis, based on merit. Written appeals explaining the reasons for the delay may be submitted to the Chairman, who can condone delays of up to two years. Delays beyond two years, up to three years, may be condoned by the Coir Board itself.

Procurement/Cost of Machinery under the Scheme:

• All plant, machinery, and equipment required for establishing the coir processing unit must adhere to BIS/Coir Board standards and specifications prescribed periodically. These should be of reputed make. In the case of importing machinery for high-value coir products using high-tech machinery, all relevant import documents from Customs Authorities/DGFT/Banks, along with a Performance Guarantee, must be provided. The machinery must obtain certification for exclusive use in coir/value-added diversified products or coir blended items. The Technical Committee will periodically review and adjust the estimated costs to account for changes in field conditions and increases in input costs related to machinery fabrication.
• Incentives will be provided for the installation of diesel engines, power generator sets or any non-conventional energy generating equipment. These incentives will be factored into the project cost for both existing and new units. Additionally, provisions will be made for separate electrical power lines from rural feeders.
• The Coir Board will update the list of machinery for each type of unit to reflect any additions or modifications resulting from innovation, technological advancements, new processing technologies, or product diversification. This will be done in accordance with the recommendations provided by the Technical Committee.

General Instructions:

1. Financial assistance under this component will be disbursed to the applicant only after the unit commences production, as reimbursement of investments in Plant & Machinery. For units set up/modernized using institutional credit, assistance will be released to the bank account through which the loan/credit was obtained.
2. Beneficiaries receiving financial assistance through this component are restricted from mortgaging assets, except to the financial institution or bank from which the loan was secured for establishing the unit.
3. Coir units are not permitted to dispose of items for which incentives have been disbursed within 7 years from the receipt of assistance under the scheme.
4. Each plant/machine for which incentive has been provided will be identified with an embossed/engraved Identification Code (IC).
5. Entrepreneurs availing incentives under this component must provide an undertaking that the unit has not applied for or received subsidy/assistance under any other Central Government scheme for the same purpose.
6. The assistance provided by the Board under this component will be subject to recovery from the entrepreneur through legal channels under the following circumstances: i. Misrepresentation of facts or provision of false information during the application for assistance. ii. The unit ceases production within 7 years from the commencement date, except in instances of brief periods of non-production (up to 6 months) due to uncontrollable factors.
7. If there are any disputes concerning the allocation of incentives within the scheme, the final decision rests with the Chairman of the Coir Board.

Maintenance of Applicant List

The list of applicants will be kept up-to-date at the Regional/Sub-Regional Offices and the Head Quarters of the Coir Board, as well as on the Coir Board website. Additionally, a database will be established within the Coir Board to centralize applicant information.

Monitoring and Evaluation

Monitoring of the units will be conducted regularly by the Regional/Sub-Regional Offices of the Coir Board, as well as by the Secretary/CEO/Chairman of the Coir Board. Mid-term assessments of the scheme's implementation will be conducted by the Board through reputable external agencies. Furthermore, the scheme will undergo regular monitoring by the Secretary of the Ministry of MSME.

FORM NO 1

COIR BOARD (Ministry of Micro, Small & Medium Enterprises, Government of India)

P.O. Box No. 1752, M.G. Road, Ernakulam, Kochi-682016

APPLICATION FOR INCENTIVE UNDER THIS COMPONENT FOR PROCUREMENT OF PLANT AND MACHINERY FOR COIR INDUSTRY

PART-A

OPERATIONAL GUIDELINES FOR THE SCIENCE AND TECHNOLOGY COMPONENT

Introduction: The Coir Board oversees innovative research and development (R&D) activities on coir through its two research institutes: the Central Coir Research Institute in Kalavoor and the Central Institute of Coir Technology in Bangalore. Established in 1959 and 1980 respectively, these institutes focus on advancing eco-friendly technologies for enhancing coir fiber quality, coir pith utilization, effluent treatment, and developing new machinery.

While the Central Coir Research Institute in Kalavoor emphasizes research in these areas, the Central Institute of Coir Technology in Bangalore concentrates primarily on coir composites technology development. Both institutes aim to identify new applications for coir and coir waste (such as coir pith), modernize production infrastructure to increase productivity and quality, and have contributed to the development of various new technologies for the coir industry.

Translating laboratory-level research results into practical applications at the field level, providing testing and service facilities to coir entrepreneurs and exporters, and conducting research activities with funding support from reputable institutions are integral aspects of the program. Collaborative research endeavors with domestic and international research organizations, institutes, industries, and universities, focusing on coir applications, product development, machinery innovation, product diversification, and environmentally friendly technology development, receive priority attention. Additionally, efforts are made to commercialize new products/technologies and machines developed by R&D institutes, register for patent rights, and maintain proper documentation.

As part of the Government of India's decision to streamline all schemes, the standalone Plan S&T scheme has been incorporated into the broader Coir Vikas Yojana scheme.

The S&T activities for the period 2017-18 to 2019-20 are implemented through the following components:

• Modernization of Production Processes
• Development of Machinery and Equipment
• Product Development and Diversification
• Development of Environmentally Friendly Technologies
• Technology Transfer, Incubation, Testing, and Service Facilities

The Director of Research, Development, Testing, and Evaluation (RDTE), who oversees the Research Institutes CCRI & CICT of the Board, will serve as the nodal officer for all S&T programs. They will be responsible for fund utilization, settlements, and submitting reports to the Head Office.

(I) Modernization of Production Processes

Objectives:

• Enhance productivity, upgrade quality, and eliminate drudgery in the extraction process of coir fiber.
• Develop suitable technologies to improve productivity and quality in spinning.
• Innovate weaving technologies for coir product manufacturing by enhancing fiber production processes and equipment.
• Deploy contemporary technologies for the finishing processes of coir products.
• Apply biotechnology to modernize production and extraction processes.
• Develop technologies for wet processing of coir using natural dyes.
• Utilize Mobile Fiber Extraction Machines to extract high-quality fiber with uniform length and reduced impurities.
• Improve coir fiber quality through bio-chemical and enzyme treatments.
• Produce a variety of diversified products utilizing high-quality fiber, including Janata Mattresses and premium coir floor coverings.
• Enhance productivity and quality standards of coir products.
• Research to introduce a new range of coir products accepted by both domestic and international markets.

Most conventional technologies in the coir industry are of moderate level, resulting in increased drudgery and subpar working conditions. Productivity and product quality suffer as a result. Continued research endeavours aim to address these issues, leading to greater acceptance of new processing technologies and the development of innovative coir products, catering to both domestic and international markets.

(II) Development of Machinery and Equipment

Objectives:

• Reduce drudgery in operations.
• Enhance productivity and quality.
• Achieving cost-effectiveness

The program aims to develop plant machinery and control systems to spin high-quality coir yarn of uniform thickness and reduced hairiness for weaving superior coir floor furnishing products. This includes the development of machinery for spinning coir yarn, fiber extraction, weaving coir products, and more. Many existing machines are outdated, resulting in low productivity and labor-intensive operations. The coir industry faces limitations such as low technology application, reluctance to embrace rapid mechanization, and economic constraints hindering modernization efforts. Modernization efforts focus on mechanization and adopting modern processes, necessitating the development of suitable machinery to process coir fiber into yarn and products with improved productivity.

(III) Product Development and Diversification

Objectives:

• Develop innovative products from coir fiber or blends with other natural fibers.
• Explore new applications for coir products, such as coir geotextiles.
• Develop technologies for utilizing coir pith.
• Create technology for incorporating coir into the automotive industry for seat cushions and upholstery.
• Design innovative patterns suitable for mats, matting, and carpets.
• Implement coir geotextiles for rural road construction under PMGSY, incorporated into PWD manuals.
• Establish Design Clinics in major coir clusters and at CCIR/CICT.

The future of the coir industry hinges on product development and diversification, especially into non-traditional sectors. Introducing substitutes for wood, synthetic products, and geosynthetics, as well as blending coir with other natural fibers, will expand the industry's horizons. Developing new applications and products is crucial for fully leveraging the industry's potential.

Innovation in eco-friendly, consumer-friendly products is paramount for the industry's future. Coir wood is poised to revolutionize the building and furnishing sectors, reducing the reliance on tropical forests and mitigating concerns about global climate impacts.

(IV) Development of Environmentally Friendly Technologies

Objectives:

• Develop suitable technologies to mitigate pollution in production processes.
• Create cost-effective, eco-friendly effluent treatment technologies for treating wet processing effluents in the coir industry.
• Develop technology for managing sludge in effluent treatment plants (ETPs).
• Innovate new products, such as wood substitutes made solely from coir or blended with other natural fibers.
• Standardize coir composite products for various applications.
• Conduct studies to estimate carbon credits through the use of coir products like composites and geotextiles.
• Develop new technology for manufacturing coir toys.

As global environmental consciousness grows, preserving water, air, and other natural resources for future generations becomes imperative. While coir and its products are inherently eco-friendly due to their biodegradability, research is needed to minimize environmental impacts from retting and wet processing.

(V) Technology Transfer, Incubation, Testing, and Service Facilities

Objectives:

• Transfer developed technologies from research institutes to trade upon specific requests and under technology transfer agreements, realizing appropriate fees.
• Establish technology incubation centers for training entrepreneurs in newly developed technologies.
• Create a tool room for the maintenance and repair of looms and equipment in various coir production centers.
• Establish a laboratory for testing coir composite materials and provide service facilities to the trade.
• Demonstrate user-friendly technologies and machinery developed by CCRI/CICT in major coir yarn production centers for the benefit of workers and entrepreneurs.
• Provide technical assistance for interventions in coir-producing clusters identified by the Board in different states.
• Conduct testing of coir and coir products, dyed samples, coir pith, etc., at CCRI, CICT, Regional Officers' laboratories, and issue test certificates.
• Offer service facilities to the trade for dyeing coir yarn/fiber at the dye house established at CCRI.
• Undertake civil/electrical infrastructure support required for research institutes such as CCRI/CICT.

The results of research activities must be disseminated to the industry and trade to popularize the diversified uses of coir and its products. Services such as testing and certification facilities are essential to meet the industry's needs.

Expenditure Phasing for the Period 2017-18, 2018-19, and 2019-20 for Each S&T Scheme is as Follows

Research Institutes receive funds quarterly from Coir Board HQ upon certifying 70% utilization of previously released funds. Funds are allocated for R&D activities and related infrastructure developments, such as civil construction and repairs, as outlined in the Action Plan under different Programme Heads of the Scheme.

Industry/Research institutes submit proposals for R&D projects, infrastructure creation, civil construction, repairs, and maintenance, subject to approval by competent authority. Coir Board prioritizes fund requirements and submits them to the Ministry on a quarterly and lump-sum basis.

• Research Institutes collaborate with recognized institutions/industries for coir-related research projects.
• Research efforts are pursued through public-private partnerships with transparency.
• Advertisements are released online inviting collaborators and interested parties to utilize the facilities at Board's research institutes.
• Collaborators may be invited to present their projects before the Board if necessary.
• Preference is given to collaborators with experience in coir or natural fiber research.
• Project outcomes must benefit the coir industry.
• Collaborating institutes contribute counterpart contributions in kind or cash.
• An Advisory Committee, including various stakeholders, validates project proposals before S&T committee approval.
• A Project Review Committee periodically reviews project progress and recommends fund releases.
• The Chairman, Coir Board, serves as the appellate authority for project matters.
• Collaborative projects have specific tenures and require a signed MoU between the Board and collaborators.
• Nodal officers oversee collaborative projects under the Director, RDTE, and submit progress reports to S&T Committee/Board Meetings.
• A database is created and updated on available technologies and RDTE experts nationwide, with consultants identified as needed.
• Two-way linkages are established with RDTE experts and field-level units.
• Continuous efforts are made to improve coir product quality and ensure compliance with relevant standards.
• Focus is placed on enhancing market penetration for selected coir products.

The scheme/project, focused on Research & Development Activity, is anticipated to yield outcomes and outputs that transcend financial metrics. The expected results of the scheme are outlined as follows:

• Development of new technologies to reduce drudgery and enhance quality and productivity of coir products
• Increased acceptance of coir products in both internal and external markets through continued research efforts
• Creation of sophisticated machinery with automation features to boost productivity and income, attracting younger generations to coir activities by eliminating physical strain and offering better income prospects
• Utilization of coir products for environmentally friendly activities leading to environmental protection

Innovation of new value-added products and exploration of novel applications for coir, contributing to the generation of national income from a previously considered waste material.