Scheme of fund for Regeneration of Traditional Industries (SFURTI)

India’s traditional industries like handlooms, handicrafts, khadi, coir, and village industries are a vital part of our economy and cultural heritage. However, these sectors often face challenges such as outdated technology, lack of market access, and limited resources. To address these issues and empower artisans and entrepreneurs, the Government of India launched the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). Popularly known as the SFURTI Scheme or SFURTI Yojana, this initiative is managed by the Ministry of Micro, Small and Medium Enterprises (MSME).

What is the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a government program launched in 2005 with the goal of helping traditional industries and artisans to succeed. The scheme focuses on organizing businesses into clusters, making it easier for you to access modern technology, better infrastructure, and improved marketing opportunities. By joining a cluster, you’ll benefit from shared resources, specialized training, and collective bargaining power, all of which help make your business more sustainable and competitive in today’s market.

Objectives of the SFURTI Scheme

• The scheme helps bring artisans together into organized groups, or clusters, for collective growth.
• It aims to generate and sustain employment in rural and traditional sectors, creating opportunities for the community.
• Through the scheme, you’ll be able to improve the marketability of your products with better design, packaging, and marketing support.
• You’ll receive training and exposure to upgrade your skills and knowledge, ensuring you stay competitive in the market.
• The scheme provides modern tools, equipment, and common facilities to improve your production efficiency.
• It also focuses on strengthening cluster management, encouraging innovation, and promoting partnerships to help your business grow further.

Key Features of the SFURTI Yojana

Cluster Development Approach

SFURTI focuses on bringing businesses and artisans like you together in clusters, creating a supportive network in your local area. By being part of a cluster, you can share resources and grow together.

Project Coverage 

The scheme aims to cover over 800 clusters across all states in India, benefiting around 4 lakh artisans. Plus, 10% of these clusters will be set up in the North Eastern Region, J&K, and other hilly states, ensuring that no region is left behind and that development is spread out evenly.

Types and Funding Patterns for Cluster

Project Duration 

The project under SFURTI has been implemented over 3 years, with the Detailed Project Report (DPR) outlining the yearly plan and fund requirements.

Project Interventions
Soft Interventions:
You’ll benefit from programs that focus on awareness, capacity building, skill development, product design, and marketing.
Hard Interventions:
The scheme also helps by setting up common facility centres, upgrading infrastructure, and creating raw material banks and warehousing.
Thematic Intervention
You'll get support for brand building, e-commerce, sector-level promotions, and innovation to help your business stand out and grow.

Note:

You can refer to the MSME SFURTI guidelines for a detailed understanding of every aspect related to the scheme. 

Funding Pattern Under SFURTI Scheme

Note:

• For the North Eastern Region, J&K, and hilly states, the government covers 90% of the funding, and you’ll need to contribute the remaining 10%.
• If you’re using leased land, the lease should be for at least 15 years, and the lease value counts as part of the contribution.
• Project costs can include remuneration for the Cluster Development Executive and related expenses for the full 3-year period.
• 20% of the funds for hard interventions will be reserved as working capital to help your cluster operate smoothly.

Implementation Structure of SFURTI Scheme

• Nodal Agencies
• Implementing Agencies (IAs)
• Technical Agencies (TAs)
• Scheme Steering Committee (SSC)

Eligibility Criteria for the SFURTI Scheme

Is Your Business Eligible? Let’s have a look at whether your business fits the criteria.

Eligibility

• Non-Government organizations (NGOs)
• Institutions of the Central and State Governments and semi-government institutions
• Field functionaries of State and Central Govt.
• Panchayati Raj institutions (PRIs)
• Private sector by forming cluster-specific SPVs
• Businesses from North Eastern Region, J&K, and hilly states
• Corporates and Corporate Responsibility (CSR) foundations having the expertise to undertake cluster development

Non-Eligibility

• Single persons or individual artisans cannot apply on their own.
• Private companies acting alone are not eligible.
• Groups or organizations not related to traditional industries or artisan activities are not eligible.

Documents Required for SFURTI Scheme Application

• DPR (Detailed Project Report)
• MSME/Cluster registration
• Legal status documents of IA/SPV
• Land ownership/lease deed (15 years minimum)
• Artisan data and beneficiary list
• Budget estimates and fund utilization plan
• Approvals from State Departments and SSC
• Organization’s registration certificate
• Endorsement from the promoting organization (if needed)
• Brief profile with the establishment date
• List of board members or governing body
• List of partner organizations or MoUs
• Audited financial statements and IT returns for the past 3 years
• Information on awards and recognitions
• Team details, especially those with cluster experience
• Bank account information
• Any other relevant documents as requested

How to Apply Online for SFURTI Yojana?

Here’s a step-by-step guide to applying under the SFURTI Yojana:

Step 1: Visit the official SFURTI Portal and register your organization’s details.

Step 2: Sign up with your credentials and fill out the application form completely.

Step 3: Upload all required documents and double-check your information to ensure it’s accurate.

Step 4: Submit the application form online for review and approval.

Benefits of the MSME SFURTI Scheme

• Modern Infrastructure

You’ll get access to upgraded tools, equipment, and shared facilities to make your production process more efficient.

• Skill Development

The scheme offers training programs to help improve your skills and knowledge, keeping you ahead in the market.

• Better Market Access

Get support for branding, packaging, and selling your products both online and offline, making it easier to reach customers.

• Financial Assistance

The scheme offers grants to help reduce the cost of upgrading and expanding your operations.

• Networking

You’ll have opportunities to connect with other artisans and entrepreneurs, helping everyone grow together through collaboration.

Real-World Examples of MSME SFURTI Scheme

• Varanasi Handloom Cluster
• Kerala Coir Cluster
• Assam Bamboo Craft Cluster
• West Bengal Leather Cluster

Related Government Support Plans with the SFURTI Scheme

Final Word

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a powerful tool for reviving India’s traditional sectors. By bringing artisans together into clusters and offering financial, technical, and marketing support, this scheme helps you build a sustainable and competitive business.

If you’re working in a traditional industry, the MSME SFURTI Scheme is a great opportunity to grow your business while preserving India’s rich artisanal heritage. Consider taking advantage of it to take your business to the next level!

Reference:
https://msme.gov.in/sites/default/files/SFURTI_GUIDELINES_REVISED_0.pdf