Coir Vikas Yojana: Coir Industry Technology Upgradation Scheme (CITUS)

What is the Coir Industry Technology Upgradation Scheme (CITUS)?

The Coir Industry Technology Upgradation Scheme (CITUS) is a capital-subsidy component of the umbrella Coir Vikas Yojana, implemented by the Coir Board under the Ministry of Micro, Small and Medium Enterprises. According to the Coir Board, CITUS is designed to help coir units modernise by installing better machinery, improving productivity and raising product quality; carrying the results of laboratory research on coir processing to the field level.

CITUS reimburses 25% of the cost of eligible plant and machinery, subject to a maximum ceiling of Rs 2.50 crore per coir unit or project. The remaining cost is met by the entrepreneur, usually with a bank term loan. Because the benefit is a share of capital cost rather than a flat payment, the actual amount depends on how much qualifying machinery a unit buys.

Key features

• Central component scheme under Coir Vikas Yojana, funded by the Ministry of MSME through the Coir Board.
• Subsidy of 25% of admissible plant and machinery cost.
• Ceiling of Rs 2.50 crore per unit/project.
• Machinery must meet Bureau of Indian Standards (BIS) norms.
• Applications, inspection and disbursal are handled by the Coir Board.

CITUS is an enterprise support scheme, not an individual welfare benefit. It supports coir producers, processors and manufacturers who want to buy or upgrade machinery. A household worker or individual with no registered coir unit cannot apply for a personal cash benefit under this scheme.

Who is eligible for CITUS?

You can apply if:

• You run a coir production or processing unit: whether newly established or already operating.
• Your unit is registered with the Coir Board under the Coir Industry (Registration) Rules, 2008, or holds Udyam / Udyog Aadhaar registration.
• Your enterprise stays within the investment limits prescribed for MSMEs.
• The plant and machinery you are buying meets minimum BIS standards.

You cannot apply if:

• You are an individual seeking a personal cash grant with no registered coir enterprise — CITUS supports units, not persons.
• Your unit is already availing a capital subsidy on the same machinery under another central scheme such as PMEGP, Coir Udyami Yojana (CUY), the Development of Production Infrastructure (DPI) component or a technology upgradation fund. Duplicate assistance on the same asset is not eligible.
• The machinery does not conform to BIS norms, or lacks valid purchase documentation.

Applicants also accept conditions that restrict resale: assets acquired with CITUS support cannot be disposed of for seven years, and cannot be mortgaged outside approved financial institutions. Machinery suppliers must provide a minimum two-year guarantee.

What documents are required for CITUS?

How to apply for CITUS

CITUS has no walk-in personal-benefit route. Registered coir units apply online through the Coir Board:

1. Go to the Coir Board portal at coirboard.gov.in and open the CITUS scheme page under Coir Vikas Yojana.
2. Complete the online registration with the promoter's details, Aadhaar number, email, mobile number and a password.
3. Fill in the CITUS application form, entering unit details, the machinery proposed and its cost.
4. Upload the supporting documents: Coir Board/Udyam registration, the CA certificate, machinery invoices and bank details.
5. Submit the application. Coir Board officers then inspect the unit and verify the documents, generally within about 15 days.
6. On approval, the 25% subsidy is sanctioned and released to the unit's bank account, subject to the Rs 2.50 crore ceiling.

How much benefit does CITUS provide?

CITUS pays 25% of the admissible cost of plant and machinery, capped at Rs 2.50 crore per unit/project. For example, a unit that installs Rs 40 lakh of qualifying machinery would be eligible for up to Rs 10 lakh in subsidy, with the balance met by the promoter or a bank loan. The subsidy is a one-time capital incentive tied to the specific machinery approved, and is released after physical verification of the installed equipment.

Help and where to apply

• Coir Board head office: Coir House, M.G. Road, Kochi, Kerala 682016
• Official portal: coirboard.gov.in
• Regional and project offices of the Coir Board assist applicants with registration and inspection.

CITUS is part of the Government of India's effort to modernise the coir sector, much of which is still rural and household-based. By sharing the capital cost of BIS-compliant machinery, the scheme aims to raise productivity and product quality while keeping coir manufacturing viable against synthetic substitutes.