The paper towel method works but you will get long weak stems that break or take a long time to recover. Growing in coir can work, especially for some large seeds like beet or sticky germinators like basil. I dont' recommend this for small seeds like carrot or parsley or perfect hard-round seeds like lettuce/spinach because they will just wash through. How about rockwool? Fiberglass? IMHO the starting material is kinda of a big deal. Go with rockwool.

Mike

After the seeds have germinated and have developed the cotyledon seeds, are any fertilisers required to be added to cocopeat. I m growing seedlings in paper-pots filled with cocopeat perilite mix as germinating medium. Any harm if we plant the germinated seeds along with paper-pots in the soil beds now.

I would start using a mild nutrient solution (about 1/4 strength) once the first true leaves start showing. Transplanting into soil is just fine, the coco coir is a great soil amendment, and the paper pots will decompose quickly so the roots can expand.