Scheme Of Fund For Regeneration Of Traditional Industries ( SFURTI )
With an initial allocation of Rs 100 crore. A Central Sector Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” was approved at a total cost of Rs 97.25 crore. The Scheme was implemented by the Ministry of Micro, Small, and Medium Enterprises (MSME) and its organizations (Khadi and Village Industries Commission-KVIC and Coir Board), in collaboration with State Governments, their organizations, and non-governmental organizations.
India has a rich heritage of traditional industries. This sector not only plays a
crucial role in providing large-scale employment opportunities at comparatively lower
capital cost, but also helps in the industrialization of rural & backward areas, thereby
reducing regional imbalances,
What are Traditional Industries under SFURTI?
Traditional industry means an activity that produces marketable products, using locally available raw materials and skills and indigenous technology.
Traditional Industries under SFURTI can be broadly categorized into:
- Khadi (comprising of hand-spun and hand-woven cotton, woolen, muslin and silk varieties),
- Coir Based Industries and Village Industries (including non-timber forest produces-NTFPs, handmade paper, agrobased goods, textiles based products, and other miscellaneous microenterprises
Schemes merged into SFURTI
- The Scheme for Enhancing Productivity and Competitiveness of Khadi Industry and Artisans
- The Scheme for Product Development, Design Intervention and Packaging (PRODIP)
- The Scheme for Rural Industries Service Centre (RISC) and
- Other small interventions like Ready Warp Units, Ready to Wear Mission, etc.
What is cluster in SFURTI?
Traditional Industry Cluster, in the context of the SFURTI scheme, refers to a geographical concentration of a sizable number of artisans or micro-enterprises, suppliers of raw materials, traders, service providers, etc. producing processing and servicing the same or similar types of products and facing common opportunities and threats
SFURTI scheme main objectives
- To organize the traditional industries and artisans into clusters to make them
competitive and provide support for their long term sustainability and economy
2. To generate sustained employment for traditional industry artisans and rural
3. To improve the marketability of products of such clusters by providing support for
new products, design intervention, innovation, and improved packaging, and also the
improvement of marketing infrastructure;
4. To provide equipment to traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
5. To tap E-Commerce as a major marketing channel given the outreach and
With the growing market penetration of E-Commerce, there is a need to devise a quick
strategy to make its presence felt in the E-Retail space.
6. To make a substantial investment in the area of product design and quality
improvement. There is a need to standardize the quality of inputs and processes
so that the products meet the quality benchmarks.
7. To develop specific product lines based on the target consumer segment of the currently diversified basket of heterogeneous products.
8. To shift from a supply-driven selling model to a market-driven model with the right focus, product mix, branding, correct positioning, and right pricing so that the offering is optimal for each focus category.
Assitance granted by the government under SFURTI
|Type of Cluster||Per Cluster Budget|
|Regular Cluster (up to 500 artisans)||Up to Rs.2.50 crore|
|Major Cluster (more than 500 artisans)||Up to Rs.5 crore|
How to apply for SFURTI?
Who can apply for benefits under SFURTI?
- Non-Government Organisations (NGOs).
- Field functionaries of Central and State Government.
- Panchayati Raj Institutions (PRIs).
- Institutions of the State and Central Government and semi-government institutions.
- Private sector by forming cluster-specific Special Purpose Vehicles (SPVs).
- Corporates and Corporate Social Responsibility (CSR) foundations having the expertise to undertake cluster development.
Facilities provided under SFURTI?
- General awareness, motivation, counselling, and trust-building.
- Capacity building and skill development for the entire value chain.
- Exposure visits.
- Institution development.
- Product and design development.
- Market promotion initiatives.
- Participation in training programmes, workshops and seminars on technology up-gradation, etc.
- Multiple facilities for packaging and multiple products wherever needed.
- Raw Material Banks (RMBs).
- Common Facility Centres (CFCs).
- Tools and technological up-gradation such as tool-kit distribution, charkha up-gradation, etc.
- Up-gradation of production infrastructure.
- Training centre.
- Warehousing facility.
- Value addition and processing centre/multi-products.
- Promotion and brand building campaign.
- E-commerce initiatives.
- New media marketing.
- Development and research initiatives.
- Developing institutional linkages with the existing and proposed clusters.