Government Schemes Yojana

Rejuvenation, Modernization & Technology Upgradation of the Coir Industry

Mukesh Jindal
Written by Mukesh Jindal

Coir Industry is one of the oldest traditional industries. It generates ‘value’ literally out of ‘waste’ (coconut husk), besides providing eco- friendly products resulting in large scale employment comprising mostly women and contributing to around Rs. 600 crores worth of exports annually. Currently, the utilised capacity of coir husk is only around 40%. This is essential because the basic producers of raw material and
semi-finished products do not have the wherewithal to convert a higher percentage of husk into fibre and yarn. The machinery (ratts and looms) have been in use for decades without replacement or modernization besides being exposed to rains.

A Central Sector Scheme on Rejuvenation, Modernization & Technology Up gradation of the Coir Industry was, therefore, 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 scheme aims to develop the supply of basic raw material at the grass root level of the coir industry to ensure a continuous supply of quality coir yarn throughout the year.



• Any individual above 18 years of age with Indian citizenship can apply.
• There will be no income ceiling for assistance for setting up of the project under the REMOTE scheme.
• Individuals, companies, SHGs, NGOs, institutions registered under Societies Registration Act 1860, production cooperative societies, joint liability groups and charitable trusts will get assistance.
• The SC/ST, women, NER and Andaman and Nicobar Islands and Lakshadweep beneficiaries will be given priority.


The applications can be collected from
• The Coir Board offices
• DICs
• Coir Project Offices
• Panchayati Raj institutions
• The nodal agencies approved by the Board for this purpose
Download the forms from the Coir Board website and submit directly to the Coir Board field offices or through the DICs.

Objectives of the Scheme:

The main objectives of the scheme are as under:
(i)To modernise Coir industry by adoption of modern technology
in production and processing of Coir in the spinning and
weaving sectors;
(ii)Upgradation of the production and processing technology for
improving the productivity and quality;
(iii) To increase the efficiency and productivity for enhancing the
earnings of the workers and income of spinners/ tiny-
household sectors;
(iv) To improve the utilisation of coconut husk for increasing the
production of Coir and Coir products;
(v) To generate employment in the rural areas of the Coir
producing states;
(vi) To provide more employment opportunities for women in the
rural sector for gender empowerment;
(vii) To contribute to inclusive growth of vulnerable sections of
beneficiaries especially those belonging to Scheduled Castes
(SC), Scheduled Tribes (ST) and North Eastern Region (NER);
(viii) To give sufficient training to the rural youth of the coconut
producing States with an eye on attracting them to the fold of
coir sector.


The scheme is proposed to be launched as the first phase of a
Central Sector Scheme for Rejuvenation, Modernization & Technology Upgradation of the Coir Industry through the following interventions:-
•Traditional spinning and weaving activities will be rejuvenated by providing proper work environment (work sheds) along with motorized ratts replacing the decades old obsolete implements and ratts in the spinning sector and mechanized looms replacing the obsolete implements and looms in the tiny/household weaving sector.
•The intervention in the spinning sector is targeted to be women oriented. The quality of ratts and looms to be provided under the scheme will be vetted by a committee to be specifically constituted by the Coir Board in which representatives of spinners/weavers will also be ensured. The component of machinery/ratts/looms will not be considered in isolation. However, in case, selected beneficiaries already have a work shed, only the component of required machinery will constitute the project.


The list of beneficiaries will be maintained at the Sub Office, Regional Office and the Headquarters of the Coir Board and hosted on the Coir Board’s website. As and when their turn comes, the applicant will be considered on merit. A data bank will be created in the Special Cell in Coir Board.
A Majority of the units in the coir sector are in the tiny and micro sectors, which are functioning as household units mostly in the unorganized sector The main schemes under which the Coir Units have been assisted are : Scheme on Rejuvenation, Modernization and Technology Upgradation (REMOT) of the coir industry launched during 2007-08 to facilitate the sustainable development of the Spinning and Tiny/household weaving units of the coir industry by providing proper worksheds 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.

The pattern of financial assistance under the scheme is 40% of the project cost as the Government of India grant/subsidy, 5% as beneficiary contribution and 55% as term loan from Banks. During the last three years, Coir Board has provided financial assistance of Rs.43.62 crore for setting up of 3331 Units under this scheme.

Barriers in Technology Adoption

• The most formidable problem faced by the SMEs in India has been in accessing technology and maintaining
competitiveness. The reasons are:
– Poor financial situation and low levels of R&D
– Poor adaptability to changing trade trends
– Desire to avoid risk
– Non-availability of technically trained human resources
– Emphasis on production and not on production costs
– Lack of management skills
– Lack of access to technological information and consultancy services
– Isolation from technology hubs

• The most important barrier in the adoption of improved technology is the lack of financial resources to the
• In several instances, the cost of technology makes it difficult to be adopted. A large number of SSI units reported difficulty in obtaining sufficient funds from banks and financial institutions.
• There was also the lack of awareness about the credit guarantee scheme.
• Other barriers observed are lack of awareness and information about the availability of requisite technology, desire to avoid risk of adoption of improved technology, low level of indigenous R&D, inadequate management skills and non-availability of technically qualified persons to operate the new technology.


We hope this scheme works according to the plan and we get to see a good ouptput in the coming years. All it needs is a good implementation of the plan which is not easy but can be done with proper time and guidance.

About the author

Mukesh Jindal

Mukesh Jindal

My name is Mukesh Jindal, and I am from New Delhi, India. I am an engineer by profession. I am employed by an IT company in which I work. My topics of interest include technology, mobile, and apps.

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