India thrives upon many of its traditional industries such as khadi, coir, bamboo and so on. Unfortunately, it is a very unorganised sector with a unique set of challenges. The Government of India is instrumental in encouraging these industries. As a result, the government has launched several schemes for the unorganised sector and SFURTI is one of them.
SFURTI Scheme
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched by the Ministry of MSMEs and the Government of India in 2005 to promote cluster development. A cluster development shall enable traditional industries to be more productive and profitable. SFURTI plans to set up a Common Facility Centre (CFCs) for generating sustained employment opportunities. The focused sectors on which SFURTI will work are Bamboo, Honey and Khadi clusters.
Overview of the Scheme
| SFURTI Yojana | Scheme of Fund for Regeneration of Traditional Industries |
| Launch Year | 2005 |
| Number of Approved Clusters (as of September, 2023) | 513 |
| Number of Approved Clusters in FY23 | 62 |
Objectives of SFURTI Yojana
Here are some of the key objectives of the scheme:
- To organise the artisans and traditional industries into clusters for better competitiveness.
- To provide employment opportunities for artisans and rural entrepreneurs dependent on the traditional industries.
- To improve the skills of artisans
- To support them in new product development, design interventions and packaging. Moreover, it supports clusters in improving marketing infrastructure so that artisans can enhance their reach with appealing products.
- Making provision for common facilities such as raw material banks and providing artisans with improved tools and equipment for better production.
- With the active participation of the stakeholders, strengthening the cluster governance systems. Improved governance can further help clusters foresee upcoming challenges and opportunities and respond to them strategically.
Also Read: MSME Advantages and Disadvantages
Eligible Entities for SFURTI Yojana
These are the entities which can apply for the SFURTI Scheme:
- Corporate and Corporate Responsibility (CSR) Foundations
- State and Central Government field functionaries
- Institutions of the Central and State Governments
- Non-Government Organisations (NGOs)
- Panchayati Raj Institutions (PRIs)
- Private sector by forming cluster-specific SPVs
- Semi-Government Institutions
Apply for Loan under SFURTI Yojana
- One needs to prepare a proposal and make a funding request.
- Eligible entities are required to submit the proposal to the State Office, KVIC and the same is checked at the State and Zonal Level.
- Once the verification of the proposal is done it is then finally presented to the Steering Committee for final approval.
- Once the Steering Committee approves the proposal, the loan is granted.
How to prepare a proposal or project report?
Key components for your proposal or project report should include:
- Cluster Profile
- Artisans’ Profile
- Product profile
- Market assessment and market demand analysis
- Detailed intervention plan
- Project cost and means of finance
- Project Timelines
- Detailed business plan (Sales figures, receipts, payments, income and expenditure should be included)
Also Read: MSME Schemes for Small Business
Subsidy Details of SFURTI Yojana
The financial assistance provided under the SFURTI scheme for any specific project shall be subject to a maximum of Rs 8 crore.
| Cluster Type | Financial Assistance Limit |
| Clusters having 1000-2500 artisans | Rs 8 crore |
| Clusters having 500-1000 artisans | Rs 3 crore |
| Clusters having up to 500 artisans | Rs 1 crore |
MSME Loan Schemes:
- CGTMSE Scheme
- CLCSS Scheme
- Credit Guarantee Scheme
- NSIC Registration
- PMEGP
- Mudra Loan
- PSB Loans in 59 Minutes
- PMRY Loan
- Stand-up India and Start-up India
Implementation of SFURTI Yojana
- Web-Based Project Management System (PMS)
A dedicated SFURTI website is developed that would handle the scheme properly. It is enabled with Project Management System (PMS) to manage running projects, invite proposals, screening of applications and concurrent monitoring of progress till the completion of the project.
- Identification of a tentative list of clusters
A list of prospective clusters at state levels, in consultation with Technical Agencies (TAs), would be prepared by Nodal Agencies (NAs). The NA will identify which Implementing Agency shall serve as the local operative in managing the clusters and seeing to their daily affairs.
- Engagement and Appointment of Technical Agencies (TAs)
The Technical Agencies shall be institutions at the national level that have experience of small enterprise and artisanal cluster development. The TAs will be involved as implementing agencies with close hand-holding support to the clusters, and technical support to IAs and NAs, respectively.
- Approvals from Scheme Steering Committee (SSC)
Proposals of the clusters and the respective IAs for the clusters of the NAs will be reviewed by the Scheme Steering Committee. Upon review, the SCC shall approve the cluster proposals.
- Pre- requisites for release of funds
It will submit the proposal for the release of funds cluster-wise to the Ministry of MSME. The release of funds for the NAs is based on the approved Plan of Action and the progress of expenditure.
- Release of funds to Nodal Agencies (NAs)
Release of funds to NAs happens when the Implementing Agencies give Utilisation Certificates (UC) and progress reports. Once receiving funds, the fund is released to the cluster, as appropriate, according to the Annual Action Plan or cluster, as approved.
- Release of fund to Implementing Agency (IA)
On receiving the final approval, the NA shall issue a sanction order. The NA shall make an initial payment for the hard intervention in the bank account opened in the name of the IA. The release of funds by NAs to the IAs for soft intervention will be need-based. The part component of the fund is released to the IA after the in-principle approval of the SSC.
Conclusion
SFURTI is one of the motivational schemes which promote the development of the rural economy mainly by growth of traditional industries. Knowledge transmission occurs in traditional industries as the same is from one generation to another. The relevance at times vanishes with lack of modern technological facilities and marketing channels. Therefore, this scheme motivates the artisans to apply modern technologies, and better marketing channels and promote development.
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FAQs
What is the SFURTI Scheme?
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched by the Ministry of MSMEs and the Government of India in 2005 to promote cluster development. A cluster development shall enable traditional industries to be more productive and profitable. SFURTI plans to set up a Common Facility Centre (CFCs) for generating sustained employment opportunities. The focused sectors on which SFURTI will work are Bamboo, Honey and Khadi clusters.
Who is eligible to apply for funding under the SFURTI Scheme?
There must be 500 beneficiary families comprising micro-enterprises or artisans, service providers, traders, suppliers of raw materials.
What is the maximum of SFURTI?
The financial assistance provided under the SFURTI scheme for any specific project shall be subject to a maximum of Rs 8 Crore.
When was SFURTI established?
The scheme was launched in the year 2005 with the view to promote Cluster Development.
