Detailed study on Coir Vikas Yojana (CVY)

Coir Vikas Yojana (CVY) is a scheme initiated by Coir Board that functions under the Ministry of Micro, Small, and Medium Enterprises (MSME) It has been rolled out with the goal of facilitating the development of export as well as domestic markets.

Coir Vikas Yojana also aims at providing effective training and skill development, entrepreneurship / employment creation and development, trade-related services, improved raw material usage, welfare activities related to coir workers, and empowerment of women.

Objectives of the Coir Vikas Yojana Scheme,

The main objectives of the CVY scheme are mentioned below:

• To help in establishing new state-of-the-art Coir Processing Units.
• The help in better usage of existing raw materials.
• To help women get better employment opportunities. Emphasis is given to women who live in rural areas.
• To update existing coir units.
• To help in the production of products that are of high value to customers.
• To help in the adoption of techniques that are eco-friendly.
• To improve quality and productivity by modernising the infrastructure facilities of the production units.
• To help in bringing up the industry in the areas which have potential.
• To help bring in new generation entrepreneurs into the industry.
• To promote the usage of information technology in the industry.
• To help in making the Coir Industry more competitive by implementing modern technology.
• To use technology advancements to make the Coir Industry pollution-free.

Components of the Coir Vikas Yojana

The components present under the scheme are:

• Welfare Measure (Group Personal Accident Insurance Scheme)
• Trade and Industry Related Functional Support (TIRFS)
• Domestic Market Promotion (DMP)
• Development of Production Infrastructure (DPI)
• Export Market Promotion (EMP)
• Skill Upgradation and Mahila Coir Yojana (MCY)

Highlights of the Scheme

The programme offers a lot of benefits under various schemes:

• Provision of equipments for coir spinning, coir-spinning ratts, machinery, materials, and other necessities with 75% subsidy under the scheme of Mahila Coir Yojana.
• Imparting quality consciousness at grass root level among the workers and educating them about appropriate production methods related to standard quality yarn, fibre, and other products.
• Creating awareness among entrepreneurs, coconut growers, and other stakeholders for setting up coir-based production units and modernising existing production units to achieve better quality, productivity, and improved earnings.

The Coir Vikas Yojana scheme includes two distinct components, namely, Mahila Coir Yojana and Skill Upgradation. Training is the primary objective of the scheme, but it was noted that the distribution of ratts was far below the set targets. The reason for this was that most people opted other lucrative jobs and jobs that were not seasonal.

Those who were able to produce limited output have been enabled to increase their production after motorized ratts were introduced.

Implementation of the Scheme

In order to train skilled workers as required by the present industry in both traditional and non-traditional areas related to coconut cultivation, ‘Skill Upgradation’ programme was formulated.

• The coir board takes responsibility of inculcating training associated with coir processing to workers and artisans who are engaged in the coir industry.
• Training will be provided through the training centres such as the National Coir Training and Design Centre (NCT&DC), Kalavoor, Alleppey, the Research-cum-extension centre, Thanjavur, and the Regional Training Centres of Regional/sub-regional offices of the coir board that have been located in several places in the nation.
• The coir board conducts training sessions at various field training centres according to the coir workers’ convenience. Field training centres run with help from Co-operative societies, NGOs, Associations & SFURTI SPVs/clusters that are engaged in activities related to coir.

Nodal Agency

The Nodal Agency of the scheme is the Coir Board, Kochi. The implementation of the scheme will be via Regional or Sub Regional training centres or offices of the board. The monitoring of the scheme is done by the Coir Board. The Head Office of the board furnishes monthly, quarterly, half-yearly, and yearly reports to the Ministry of Micro, Small, and Medium Enterprises. The Central Institute of Coir Technology and Central Coir Research Institute provides technical intervention whenever necessary.

Eligibility under the Coir Vikas Yojana scheme

Any new coir processing or producing units will be eligible for financial assistance under the scheme. Coir producing or processing units that are registered under the Coir Board and have a Udyog Aadhaar will be able to avail financial assistance for modernisation under this scheme. Only on completing 5 years of successful operation can a new unit which has applied for assistance will be able to apply for assistance under modernisation.

The details on the eligibility of the scheme are mentioned below:

• Financial assistance under the scheme will be provided to the entire coir sector in India. However, the units that are applying for assistance must be within the investment limits that have been set by the MSME Act for Small and Medium Industries.
• The application must be filled and submitted with all details online. A spot check will be done by the Regional Officer or Sub Regional officer who is in charge of the Coir Board. All the documents will be checked by the officer and the amount of financial assistance that must be provided will also be decided by the officer. The officer then recommends the details to the Coir Board Head Quarters online to get a sanction for financial assistance.
• The motors and equipment that are provided to industries under the scheme will be as per Bureau of Indian Standards (BIS) standards.
• The maximum ceiling of financial assistance that will be provided is Rs.2.5 crore.
• A five-member Technical Committee which consists of two representatives from the trade and 3 senior officers will make decisions regarding the ceiling of various prices of machinery and it will be reviewed on a periodic basis. Over the long-run, there could be various developments and improvements in technology and change in the pricing of machinery, therefore, the Technical Committee will update the list on a periodic basis.
• The machines can be sourced from an organisation of the entrepreneur’s choice. However, the organisation must have a valid Goods and Service Tax (GST) number and the machines must be of BIS standards.
• The machinery must come with a two-year guarantee regarding the performance. The copy must also be submitted when availing for incentives under the scheme.
• In order to calculate the project cost for the amount of financial assistance, the cost of equipment that is installed will be considered.
• Financial assistance is provided to entrepreneurs who have not availed any Central Government subsidy for a similar purpose under Technology Upgradation Fund (TUF), Development of Product Infrastructure (DPI), Coir Udyami Yojana (CUY), Prime Minister’s Employment Generation Programme (PMEGP), etc.
• In case original documents have been submitted to the bank, a copy that has been attested by the Manager of the bank can be submitted along with the application in order to avail financial assistance.
• The applications that have been received for financial assistance will be sent to the steering committee on the recommendation of Regional or Sub Regional officers. The steering committee takes the decision on whether to approve the application for financial assistance. The steering committee meets a minimum of one time in two months.
• The application is usually based on a first-come-first-serve basis subject to the submission of documents. The criteria that are adopted for the selection of the beneficiary is purely based on the merits and the Project Steering Committee rankings.

Maintaining the applications list

The Head Quarter of Coir Board, the Regional and Sub Regional Office, and the Coir Board website maintains the list of applicants. However, the Coir Board must create a data bank.

Evaluation and monitoring

The monitoring of the coir units is done on a regular basis by the Regional and Sub Regional Offices of the Coir Board and by the Coir Board Secretary, Chairman, or CEO.

Skill Upgradation

In order to attract entrepreneurs to start coir processing units, various programmes such as exposure tours, seminars, workshops, awareness programmes, and Entrepreneurship Development programmes have been implemented. Various training programmes have also been initiated by the Coir Board in order to create skilled manpower. A stipend of Rs.1,000 is paid to individuals who are a part of this program.

Development of production infrastructure scheme

Financial assistance is provided for modernising existing coir units and setting up new coir units under the scheme. 25% of the total price of the equipment and infrastructural facilities (maximum of Rs.6 lakh), Rs.4 lakh for an Automatic Spinning Unit, Rs.5 lakh for other expenses are provided as financial assistance under the scheme. In case of a multiple or composite unit, the maximum ceiling of financial assistance that is provided is Rs.9 lakh. Financial assistance for modernising an existing coir unit is 25% of the cost of equipment and infrastructure facilities (maximum of Rs.2 lakh).

Mahila Coir Yojana

• The coir industry is export-oriented and labour-intensive, with over 7 lakh workers. Roughly 80% of these workers are women. Ridden with lack of training and being an unorganized sector, this industry has been facing issues related to production and quality.
• Inferior quality products proved detrimental to the coordinated efforts to achieve overall progress of the industry and its survival. Skill development became the crucial factor to enable the industry to spread into the non-traditional zone and to accomplish overall development.
• Mahila Coir Yojana (MCY), the first women-focused self-employment programme, was initiated by the Coir Board in 1994. It aimed at providing 75% subsidy on the cost of machineries and ratts for trained and skilled woman artisans.
• Training and quality enhancement programmes such as MCY have been undertaken since then. During the training period, woman artisans are paid a stipend of Rs.1,000/- per month as well.

Final Words

The Indian coir industry is clouded by decentralised operations and unorganised processes. Lacking appropriate training and structured functioning, this industry faces problems in achieving the expected level of quality of the ultimate products.Substandard quality and workers’ involvement in production activities without sufficient training proves detrimental to the industry’s survival. Coir being a traditional product, there is space for skill development that is crucial for the industry’s overall development. Training and upskilling become imperative for proliferating the coir industry into the untested, non-traditional areas.It was realized that a large number of trainers were required for training artisans at field level for developing the production base. Recognising the need for adequate training of supervisory/managerial instructors/trainers, and expert artisans in sufficient numbers, it was proposed to initiate a 3-tier training system.