NEW CENTRAL SECTOR SCHEME OF MINISTRY OF MSME, GOVT. OF INDIA FOR
REJUVENATION, MODERNIZATION & TECHNOLOGY UPGRADATION OF THE COIR
INDUSTRY (REMOT)
The REMOT scheme is approved by Ministry of MSME, Govt of India for implementation
during the XI Plan period (2007-12) till March 2012. Coir Board, Kochi is the Nodal
Agency for implementation.
Objective:
 To modernize coir industry by adoption of modern technology in production and
processing of coir in the spinning & weaving sectors; To increase the efficiency and
productivity for enhancing the earnings of the workers and income of spinner and
tiny/household sectors; To generate employment in the rural areas of the coir
producing States; To provide more employment opportunities for women in the rural
sector for gender empowerment; To contribute to inclusive growth of vulnerable
sections of the beneficiaries especially those belonging to Scheduled Castes (SC),
Scheduled Tribes (ST) and North Eastern Region (NER)
Selection of beneficiary:
The applications under the scheme are generated by the Coir Board and beneficiaries
conforming to the eligibility criteria are selected by a committee constituted by the Coir
Board.
Spinning sector
Tiny/Household sector
Eligibility
An individual (identified by An individual (identified by Coir Board)
Coir Board) engaged in the engaged in the production of traditional
production and processing Coir products, viz, coir mats, mattings,
of Coir and also such new carpets, rope, rubber backed coir
unit – having a minimum 2 products, coir pith processing units etc.,
cents of land of own/lease registered with Coir Board – having a
for a minimum period of minimum 3 cents of land of own/lease for
10 years (documents in a minimum period of 10 years with
proof to be produced) & minimum infrastructure and experience
producing project proposal in the field of manufacture of Coir and
in the prescribed format Coir products & producing all relevant
approved by the Coir details regarding the ownership of land,
Board and the Bank
lease document, experience in the filed of
manufacture of Coir and Coir products
with details of project proposal certified
by a Chartered Accountant/Chartered
Engineer along with the prescribed
format approved by the Coir Board
Project cost
Rs.2, 00, 000/Rs.5, 00, 000/Promoter’s
5%
5%
investment
Nature of loan Term loan
Term loan
Quantum
of Rs.1,90,000/(including Rs.4,75,000/- (including Govt. grant/
loan
Govt.
grant
/subsidy subsidy equivalent of Rs.2,00,00/-)
equivalent of Rs.80,000/-)
Rate
of As per prevailing guidelines under the scheme
interest
Upfront fee on 50%
of
the
normal Normal charges (No upfront fee on
Term Loan
charges (No upfront fee on Govt.grant/subsidy portion of the loan)
Govt.grant/
subsidy
portion of the loan)
Government
40% of the project cost, 40% of the project cost, maximum
grant/Subsidy maximum Rs.80,000/Rs.2,00,000/-
Repayment &
Repayment
holiday
Security
Insurance
CGMSE cover
a. Term loan excluding the Govt. grant/subsidy portion to be repaid in
60 months in EMI/monthly/quarterly/half yearly installments along
with accrued interest commencing 6 months after availment of the
Loan from the Bank.
b. Interest charged during the repayment holiday is spread over the
entire repayment period and paid along with monthly/quarterly/half
yearly installments.
a. Hypothecation of assets created out of loan and Govt. grant held as
prime security
b. No collateral security including third party guarantee to be insisted.
Assets created out of loan and held as security by the Bank to be
insured
Loans granted under the scheme to be covered under Credit
Guarantee Fund for Micro & Small Enterprises of Credit Guarantee
Fund Trust for Micro & Small Enterprises. The Upfront and Service Fee
are to be borne by the borrowers.
Conditions apply. The information provided above is only illustrative and not exhaustive.
Contact:
For more details, please contact your nearest Canara Bank branch or E-mail to:
hosbu@canarabank.com