COIR GEOTEXTILES DEVELOPMENT PROGRAM

The Government of India substituted Rebate scheme with MDA, at the rate of ten percent of annual sales turnover (an average of three years). The expected amount of sales turnover of societies and apex organization on an average for the 11 th Plan period is Rs. 16800.00 lakh. The MDA at 10% will be Rs. 1680.00 lakh of which 50% is State Share and and 50% Central Share. The provision will be utilized to promote sales of Coir products, identify new markets and uses of coir and to make the marketing professionals result oriented. 40 Co-operative Societies and other institutions are expected to get benefit of the scheme. An outlay of Rs. 150.00 lakh is provided as the 50% state share towards implementation of thescheme during the Budget 2007-08.

An outlay of Rs. 600.00 lakhs under Flagship Programme is provided in the Budget 2007-08 to enable the Kerala Coir Workers Welfare Fund Board to implement various welfare schemes for social protection and to give matching grant, pension etc.

The comprehensive coir Geotextiles programme is aimed at implementing pilot projects, inclusion of Geotextiles as a standard engineering material, strengthening of R&D and marketing efforts with product specified MDA packages. The assistance can be given to Coirfed, Kerala State Coir Corporation, FOMIL, NCRMI, PWD, Irrigation, KSEB and other Government Institutions. An outlay of Rs. 25.00 lakh is provided for the scheme during 2007-08.

An amount of Rs. 151.00 lakh is provided for R&D activities for improving the coir processing machinery to increase productivity in the sector and for production of diversified coir products with high value addition during 2007-08. Construction of biuilding and other infrastructure development for the Centre already commenced are to be completed.

Coir Board is implementing the scheme " Mahila Coir Yojana" with a view to provide self employment opportunity to rural women workers in the coir producing areas. As per the scheme, Coir Board will give training and supply ratts with 75% subsidy. Coir Board has been requested to include Geotextile looms also under the scheme. The provision is for meeting 25% of the expenditure on the cost of ratts/looms. The scheme envisages distribution of traditional motorized ratts for spinning coir yarn and looms for weaving Coir Geotextiles to women workers after giving them necessary training. The physical target envisaged is approximately 5000 Women Coir Workers. For the Budget 2007-08 an amount of Rs. 150.00 lakh is provided as 25 per cent state share for the scheme.

Small Scale producers in coir sector, are proposed to be assisted by providing margin money loan up to 50% , so as to avail margin for financial assistance from banks/financial institutions, for establishing new industrial units or expansion/diversification of existing industrial units. The scheme is proposed to attract private entrepreneurs for production of value added products in the coir sector. The ceiling is to be limited to Rs. 2.5 lakh per unit. Private Entrepreneurs are expected to get benefit of the scheme.
Coir Development Department proposes to organize three Raw Material and Marketing Consortiums of Small Scale Producers, Mats and Matting Co-operative Societies and SHGs under cluster development programme. The provision under this head is also for meeting the Margin Money Loan requirement of these Consortiums. An outlay Rs. 10.00 lakh is provided for the scheme during 2007-08.

An outlay provided for the construction/renovation of residential buildings for improvement of living standards of Coir Workers. A portion of the outlay can be utilized for electrification of house, construction of latrine, for providing drinking water facility, medical reimbursement and educational assistance to the children of Coir Workers etc. Coir workers are expected to get benefit of the scheme. For the Budget 2007-08 an outlay of Rs. 15.00 lakh is provided for the scheme.

An outlay of Rs. 300.00 lakh is provided under RIDF scheme of NABARD for establishing new common facility service centres like dyeing/bleaching plant, shearing & stenciling plant-where potential exists. Installation and modification of the existing effluent treatment plants, modernisation of dye house , repairing of machinery etc. In product manufacturing societies and public sector undertakings will also be met with this provision. Five co-operative societies are expected to get benefit of the scheme. Suitable schemes/projects should be prepared and submitted to NABARD with the approval of SPB for availing assistance

An amount of Rs. 35.00 lakh is provided for the modernisation of Coir Industry and for enhancing the productivity during 2007-08 under RIDF of NABARD so as to meet the global demand for coir products of superior quality and to withstand the price competition from other fabrics. Creation of new computer aided designs for better response to market trends etc. are also envisaged. Coir Board has developed 1m width semi automatic loom to wave coir door mats (Anupam loom) costing around Rs. 1.5 lakh. This is to be commercially popularized. To modernize coir industry, it is necessary to provide assistance @ 50% subsidy to the Co-operative Societies and Private individuals, Public Sector Undertakings in the Coir Sector, who modernize their factory subject to a maximum of Rs. 4.00 lakh for fixed capital investment for acquiring high productivity semi automatic looms. Assistance will also be available for acquiring computer with appropriate software for computer aided designs. Expenses for imparting Training necessary for the workers and supervisory staff in the coir sector, to take advantage of the innovations, will also be met from this outlay. Provision under this head will also be utilized to organize EDP training to start Coir Industries. A provision of Rs. 2.00 lakh is intended for paying project report preparation charges, if any, for preparation of projects for submission to Government of India/other agencies.

In view of the acute shortage of coir fibre, being experienced by the coir manufacturing units and to increase utilization of Green husk, it is proposed to give special investment subsidy to mechanized defibering mills established in the private sector @ 50% of the fixed capital investment, subject to maximum Rs. 10.00 lakh. Appropriate project reports are to be submitted to NABARD with approval of State Planning Board.

The scheme is for strengthening the production and marketing activities of Public Sector Undertakings viz. Kerala State Coir Corporation, Foam Mattings (India) Ltd. and the Apex Society-Coirfed by way of strengthening their share capital base. An outlay of Rs. 50.00 lakh is provided for the purpose during 2007-08.

The outlay provided is for strengthening Coir-operative Societies, Mats & Matting Societies, Small Scale Producers Co-operatives, Defibering Mill Co-operative etc. to improve its health. The scheme envisages enabling the co-operatives to wipe out its losses and providing Working Capital support. The Selection of Co-operatives and the quantum of assistance will be based on the revival report submitted by the societies. Around 150 co-operative societies, which did not get sufficient support during 2006-07, are expected to get benefit of the scheme. The fund required for giving awards to best performing societies (yarn sector, product sector, fibre sector) best worker, best Coir Society President etc. would also be met from this provision. In the Budget 2007-08 an amount of Rs. 600.00 lakh is provided for the purpose under RIDF to be availed from NABARD. For this, suitable project proposals should be submitted with the approval of the State Planning Board

The scheme is for eliminating depot owners and to strengthen the small-scale coir manufacturing co-operative societies by setting up common facility centres as an alternative to existing depot system. This being implemented through KSCC and Coirfed so as to benefit the genuine coir producers in Coir Yarn and product manufacturing sector, for which an outlay of Rs. 225.00 lakh is provided for 2007-08 under Flagship Programme.

An amount of Rs. 50.00 lakh under Flagship Programme is provided in 2007-08 for the scheme towards the following activities.

This is to give some incentive to 100% Handloom made Coir Products to boost the export of the same. It is proposed to give subsidy of 20% on the FOB value of export of 100% handloom made Coir Products produced and exported from the State by giving agreed wages/CIRC wages and benefits to the workers subject to maximum of 10 lakh/year.

This is for providing support to the producers by way of subsidy to compensate the loss incurred to the extent the difference in the manufacturing cost and selling price. This will help majority of coir cop-operatives. It is proposed to give assistance to units under export incentive and Coir Co-operatives under price compensation incentive.

Reorganization of PSUs/Restructuring of Coirfed is being considered by Government to make them profitable and self-sustaining. The measures include closure of loans availed from District Co-operative Banks by one time settlement and introduction of voluntary retirement scheme in these organizations and such other cost reduction mechanisms. An outlay of Rs. 75.00 lakh is provided for the scheme in the Budget 2007-08 under Flagship Programme.

Research study sponsored by NCRMI through NIRJAFT, Calcutta has proved that it is possible to spin jute-coconut fibre blended yarn (50:50) for production of diversified jute-coconut fibre products. The commercial production of jute-coconut fibre blended yarn will enable to position coir in the commercial and industrial textile field comparable with jute and cotton. The introduction of jute-coir blended yarn in coir weaving industry will also enable to reduce the strain exerted by the weavers in the weaving process and will enhance domestic and export market.

It is proposed to set up a modern mechanized jute-coir blended yarn manufacturing factory under Public Sector at Kanichukulangara Coir Park (where land is available) from where the yarn can be made available to the exporters. The factory is proposed to be established with assistance of Government of India, State Government and Institutional Finance. An outlay of Rs. 10.00 lakh is provided for the scheme in the Budget 2007-08 under Flagship Project.

An outlay of Rs. 10.00 lakh is provided under Flagship Programme in the Budget to set up a factory for production of composite board by using coir mattings. This will automatically increase the demand for coir matting. The factory is proposed to be established with the assistance of State Government , Central Government and institutional finance

A detailed project report for one time ACA of Rs. 300.00 lakh in 2007-08 should be prepared and submitted to Government of India with the approval of State Planning Board.

The Government of India substituted Rebate scheme with MDA, at the rate of ten percent of annual sales turnover (an average of three years). The expected amount of sales turnover of societies and apex organization on an average for the 11 th Plan period is Rs. 16800.00 lakh. The MDA at 10% will be Rs. 1680.00 lakh of which 50% is State Share and and 50% Central Share. The provision will be utilized to promote sales of Coir products, identify new markets and uses of coir and to make the marketing professionals result oriented. 40 Co-operative Societies and other institutions are expected to get benefit of the scheme.
An amount of Rs.150 lakhs is provided as anticipated central assistance towards implementation of the scheme during 2007-2008

Coir Board is implementing the scheme " Mahila Coir Yojana" with a view to provide self employment opportunity to rural women workers in the coir producing areas. As per the scheme, Coir Board will give training and supply ratts with 75% subsidy. Coir Board has been requested to include Geotextile looms also under the scheme. The provision is for meeting 25% of the expenditure on the cost of ratts/looms. The scheme envisages distribution of traditional motorized ratts for spinning coir yarn and looms for weaving Coir Geotextiles to women workers after giving them necessary training. The physical target envisaged is approximately 5000 Women Coir Workers. For the Budget 2007-08 an amount of Rs. 450.00 lakh is provided as 25 per cent state share for the scheme.