Canara Bank, the Bangalore-based second largest public sector bank, has launched a scheme for the rejuvenation, modernisation and technology upgrade of the coir industry. The bank plans to lend Rs 240 crore and this will be jointly implemented with Coir Board.
The scheme envisages financial assistance to the tiny and household sectors in coir industry to enable them to install upgraded technology machinery for increasing production and employment. The bank signed an MoU with the Coir Board to this effect, a bank press release said.
Under the scheme, 4,000 spinning units having an employment potential of 32,000 and 3,200 tiny/household units with an employment potential of 28,800 are expected to be benefited.
While 5 per cent of the project cost has to be invested by the promoters, 55 per cent will be in the form of bank loan and the remaining 40 per cent by way of grant from the ministry of MSME through Coir Board, which is the nodal agency for implementation of the scheme.
Canara Bank would extend composite loan to tiny/household units engaged in processing and production of coir and coir-related products.
Coir industry is one of the oldest traditional industries generating value from waste (coconut husk) besides providing eco-friendly products resulting in large-scale employment.
Its contribution to exports is to the tune of Rs 600 crore annually. The Centre has also allocated Rs 243 crore scheme for the industry in the 11th Plan period.
