Coconut are presently propagated by seed (nut). When the coconut seedling is about 1 year old it can be planted in the desired place.
Generally you require 1m x 1m x 1m pit. In rocky areas 1.5m x 1.5m x 1.5m pit is recommended.
Fill the pit with excavated soil upto 3/4th of its height with 2-3 kilos of neem cake in the soil. Cut off all the tiny roots of the coconut sapling and plant it in the centre of the pit firmly with the nut inside the soil.
It is good practise to stake the plant and tie the plant gently to the stake. the sides can be covered with shading net or old coconut leaves for about one year.