Sreeram Viswanath
Expert
Published on: Aug 20, 2025
Development of Production Infrastructure (DPI)
Development of Production Infrastructure (DPI) is an initiative of the Ministry of Micro, Small and Medium Enterprises (MSMEs) that seeks to create modern infrastructure facilities to support coir production units for the sustainable development of the sector. It is implemented through the Coir Board, which is a statutory body that is administered and controlled by the Ministry. The move is expected to improve the productivity and quality of such products, as well as create employment opportunities in rural areas - with a specific focus on women. Apart from what has been stated, it proposes the establishment of new “State of the Art” Coir Processing Units in potential areas.An Overview of India’s Coir Industry
India’s coir production accounts to more than two-thirds of that of the world. While Kerala is in the forefront of this business, other states such as Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Odisha and Assam, as well as the Union Territories of Andaman and Nicobar Islands, Lakshadweep and Puducherry have joined along. Long after establishing its first coir factory in Allepey, the nation has gone on from manufacturing simple ropes to various high-end lifestyle products. On a note of significance, the golden textured Indian coir fibre produced by the states of Andhra Pradesh, Odisha and Goa remarkably made its foray into the European and world markets. Coir is envisaged to have a greater potential amongst all fibres, even when compared with the synthetic ones of today. This can be attributed to its eco-friendly qualities. Estimates suggest that the Indian Coir industry employs more than 1.5 lakh weavers and 4 lakh spinners, and is only second to agriculture in terms of employment prospects. The industry is growing by leaps and bound over the years, contributing to the economy, employment and exports in equal measure. While its domestic production is estimated to be around 3,50,000 metric tonnes, more than 40% of its total production is being exported.Scope and Initial Assistance
The scheme, which has been functional since the Seventh Five Year plan, provides for the disbursal of financial assistance for establishing new coir units and the modernization of existing units for the sustainable development of the coir sector. Until the recent past, new units were granted financial assistance of up to 25% of the cost of equipment and infrastructure facilities, subject to a maximum of Rs. 1.5 lakhs and existing units were granted Rs. 50,000 for modernization. Units producing multiple items were receiving a subsidy of up to Rs. 5 lakhs. The various parameters of the scheme are now revamped with the object of higher productivity, modernization, technology upgradation, cost-effectiveness and competitiveness of the coir sector.Objectives
The scheme has been established in view of the following objectives:- Providing modern infrastructure facilities to the production units so as to improve the productivity and quality of products.
- Creating new ‘State of the Art’ Coir Processing Units.
- Expanding the industry into potential territories across the country.
- Ensuring optimum utilization of available raw materials.
- Generating more employment opportunities, especially for women in rural habitats.
- Attracting new generation entrepreneurs to the industry.
- Modernizing the existing units.
- Producing high-value customer-oriented products.
- Making the coir industry competitive.
- Adopting eco-friendly production techniques.
- Achieving the coir industry's target of being free from pollution.