Staff Reporter

Memorandum of Understanding signed with SBI

Coir yarn spinning and household coir product manufacturing categories to benefit

The Rs.243 crore scheme the first of its kind, says Coir Board chairman

ALAPPUZHA: The Coir Board, which has launched a Rs.243 crore scheme to benefit the workers in the coir sector, has signed a memorandum of understanding with the State Bank of India (SBI) for the implementation of the scheme.

According to a statement from Coir Board here on Thursday, the MoU for the Rejuvenation, Modernisation and Technology up-gradation (REMOT) scheme, was signed by M. Kumara Raja, secretary, Coir Board, and K. Neelakandan, Assistant General Manager (Small and Medium Enterprises), SBI, in the presence of Coir Board chairman A.C. Jose at the Coir Board head office at Kochi on Thursday.

The coir yarn spinning and household coir product manufacturing categories will benefit from the scheme. Any individual, self-help group or group of persons desiring to engage themselves in the coir spinning activity or are already in the coir spinning activity are eligible for the scheme.

The unit cost ceiling for a spinning unit has been pegged at Rs.2lakh while the beneficiary contribution, either in his or her individual capacity or collectively, will be Rs.10,000.

The grant amount of Rs.80,000 will be deposited by the Coir Board in SBI, which in turn will provide Rs.1.10 lakh as term loan to the unit at a lower interest rate. The term-loan obtained from the bank has to be repaid within five years.

For the household sector, the unit cost ceiling has been fixed at Rs.5 lakh. The beneficiary contribution will be Rs.25,000. The bank will provide Rs.2.75 lakh as term-loan, which should be repaid in five years.

The Coir Board will deposit the grant portion of Rs.2 lakh in the bank.

Mr. Jose said that this is the first time that the Coir Board is implementing such a scheme.