Special investment subsidy is granted to the Defibering mills under the private sector @ 50% of the cost of the machinery subject to a maximum of Rs. 5 lakhs under this scheme. Since the industry is still facing the problem of acute scarcity of fibre and the response under the scheme was very poor - Government have decided to enhance the maximum limit of subsidy to Rs. 10 lakhs and to extend the subsidy for all fixed capital investment like land, building, machinery etc. as in the case of SSI units. Only entities who have registered with the Directorate of Coir Development are eligible for the Subsidy Scheme.

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