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G.K. Nair

Kochi , Dec. 9

THE Coir Board has taken an initiative to formulate a coir credit policy for the benefit of the sector that provides employment to lakhs of people, mostly women.

Even though some small-scale coir units are utilising financial assistance from various nationalised banks, the absence of a national credit policy and allocation plan for sector in the credit plan of various nationalised banks makes it difficult to producers to get adequate bank finance in time, a senior Board official said.

With comparatively low investment, coir-manufacturing units can be set up with scope for high employment generation compared to similar small-scale industries.

Although financial assistance to set up coir units in non-traditional areas was provided under the board's financial assistance scheme, entrepreneurs had to find their own resources for initial investment, he added.

Therefore, a segregated and targeted credit flow to this sector was the need of the hour, he said, adding the scheme was being formulated to commemorate the board's golden jubilee year.

"In order to create a separate credit plan in the coir sector, the board is pursuing the matter with the RBI and major nationalised banks with a view to get separate funds allocated for funding this sector."

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