What is SFURTI?
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is an initiative by the Ministry of Micro, Small and Medium Enterprises (MSME) to organize traditional industries and artisans into clusters to make them competitive and sustainable. The scheme aims to provide sustained employment and enhance marketability of products of such clusters.
SFURTI was launched to support traditional artisans and industries by providing them with improved equipment, common facility centers, training, and market access. The scheme particularly focuses on preserving traditional skills while enhancing productivity and income of artisans.
Objectives of SFURTI
- • Organize traditional industries and artisans into clusters
- • Provide sustained employment and enhance income of artisans
- • Enhance marketability of products of traditional clusters
- • Preserve and revive traditional skills and heritage
- • Build innovative and traditional skills for solid traditional industry clusters
- • Improve products, processes, and market access
Key Features
Cluster Approach
Focuses on geographical concentration of artisans in a specific traditional industry
Common Facility Centers
Establishes CFCs for shared infrastructure and equipment
Soft Interventions
Training, design development, and capacity building
Marketing Support
Brand building, market linkages, and exhibition support
Eligible Traditional Industries
SFURTI supports a wide range of traditional industries and crafts:
Major Categories
Khadi and Village Industries
Implemented through KVIC (Khadi and Village Industries Commission). Includes khadi spinning and weaving, village industries like agarbatti making, beekeeping, and pottery.
Handicrafts
Implemented through DC (Handicrafts). Includes textiles, woodcraft, metal craft, bamboo craft, stone carving, and traditional jewelry making.
Coir
Implemented through Coir Board. Includes coir fiber extraction, spinning, mat and matting production, and value-added coir products.
Other Traditional Industries
Other traditional industries not covered above, implemented through State KVIBs (Khadi and Village Industries Boards) and State agencies.
Examples of Supported Clusters
Textiles
- • Handloom weaving
- • Block printing
- • Embroidery
- • Silk reeling
Crafts
- • Wood carving
- • Terracotta
- • Brass engraving
- • Bamboo craft
Village Industries
- • Food processing
- • Herbal products
- • Handmade paper
- • Leather crafts
Scheme Components
SFURTI projects include both hard and soft intervention components:
Hard Interventions (Infrastructure)
- • Common Facility Centers (CFCs): Building construction for shared workspace
- • Raw Material Banks: Storage facilities for raw materials
- • Machinery and Equipment: Common processing equipment for cluster use
- • Tools for Artisans: Individual toolkits for artisans
- • Work sheds: Individual work sheds for artisans
- • Computers and IT: Common IT infrastructure for design and documentation
Soft Interventions (Capacity Building)
- • Training: Skill upgradation, design development, and technology training
- • Design Development: New designs keeping traditional elements
- • Quality Certification: Product testing and quality certification
- • Market Development: Brand development, marketing, and exhibition participation
- • Bookkeeping: Training on accounts and financial management
- • Cluster Development: Organization development and cluster governance
Generic Marketing
- • Brand building for the cluster
- • Participation in exhibitions and fairs
- • Development of marketing materials
- • E-commerce and online marketing support
- • Buyer-seller meets and market linkages
Financial Assistance
SFURTI provides financial assistance based on the category of cluster:
Funding Structure
| Cluster Type | Maximum Project Cost | Government Grant | SPV/Agency Contribution |
|---|---|---|---|
| Regular Cluster | Up to ₹2.5 crore | Up to ₹2.0 crore (80%) | Minimum ₹0.5 crore (20%) |
| Major Cluster | Up to ₹5.0 crore | Up to ₹4.0 crore (80%) | Minimum ₹1.0 crore (20%) |
Cost Breakdown (Typical Project)
Hard Interventions
- • CFC building: 40-50%
- • Machinery: 20-30%
- • Tools for artisans: 10-15%
- • Other infrastructure: 10-15%
Soft Interventions
- • Training: 30-40%
- • Design development: 20-25%
- • Marketing: 20-25%
- • Other soft activities: 15-20%
Revised SFURTI (2020 onwards)
The scheme has been revamped with increased project costs, simplified processes, and greater focus on market linkages. Now supports both regular clusters (₹2.5 crore) and major clusters (₹5 crore).
Eligibility for Clusters
To be eligible for SFURTI assistance, a cluster must meet the following criteria:
Cluster Requirements
Minimum Artisan Count
Cluster must have minimum 20 artisans (for most categories). For certain specialized crafts, minimum 10 artisans may be considered.
Geographical Concentration
Artisans should be geographically concentrated in a specific area (village/town). The scheme supports natural clusters rather than artificially created groups.
Traditional Industry
The cluster must be engaged in a traditional industry or craft with heritage value and market potential.
SPV Formation
A Special Purpose Vehicle (society/trust/cooperative/company) must be formed to implement the project.
Implementing Agencies
Nodal Agencies
- • KVIC (Khadi and Village Industries Commission)
- • Coir Board
- • DC (Handicrafts)
- • State KVIBs
Technical Agencies
- • NGOs with relevant experience
- • Industry associations
- • Institutes like NIFT, NID
- • Other empanelled agencies
Application Process
The SFURTI application process involves multiple stages:
Step 1: SPV Formation
Artisans form a Special Purpose Vehicle (Society, Trust, Cooperative, or Section 8 Company) to represent the cluster.
Step 2: Baseline Survey
Conduct a comprehensive survey of the cluster including artisan details, existing infrastructure, market linkages, and gaps.
Step 3: DPR Preparation
Develop Detailed Project Report covering technical, financial, and commercial aspects. Can be done with agency assistance.
Step 4: Submission to Nodal Agency
Submit proposal to the relevant implementing agency (KVIC, Coir Board, DC Handicrafts, or State agency).
Step 5: Appraisal
Nodal agency appraises the proposal for technical feasibility, financial viability, and potential impact.
Step 6: Approval
Sanction Committee reviews and approves the project. Sanction letter is issued.
Step 7: Implementation
SPV implements the project with agency support. Funds are released in instalments based on progress.
Implementation Structure
SFURTI projects are implemented through a well-defined institutional structure:
Institutional Arrangement
Special Purpose Vehicle (SPV)
The artisan cluster forms an SPV which is the implementing entity responsible for project execution, fund management, and day-to-day operations.
Implementing Agency (IA)
Nodal agencies (KVIC, Coir Board, etc.) oversee implementation, release funds, and monitor progress.
Technical Agency (TA)
Empanelled NGOs or institutions provide technical support, training, and handholding to the cluster.
Fund Release Mechanism
| Instalment | Milestone | Release |
|---|---|---|
| First | Project sanction | 30% of grant |
| Second | Physical progress (40-50%) | 40% of grant |
| Final | Project completion | 30% of grant |