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SFURTI Scheme: All You Needs to Know

calendar09 Jun, 2021
timeReading Time: 4 Minutes

SFURTI is an acronym of Scheme of Fund for Regeneration of Traditional Industries. The scheme was launched by GOI in 2005 under the patronage of the Ministry of MSME 2005. The primary goal of this scheme is to make traditional industries more profitable as well as competitive.

The traditional industries that have a massive skilled and unskilled workers should become economically sustainable& productive. With the SFURTI scheme, the government intends to set up various Common Facility Centers to promote job creation.

The prominent sectors for the SFURTI scheme include honey, bamboo, and khadi intending to support rural entrepreneurs as well as rural artisans.

What are the Key Objectives of the SFURTI scheme

  • To organize distinct traditional companies as well as local artisans into clusters. The idea is to promote industries and improve the economies of scale. Apart from that, the scheme is also eyeing to increase the competitiveness of the traditional companies.
  • To create sustainable job opportunities for local artisans who are engaged in traditional companies and also aid rural entrepreneurs.
  • To focus on the cluster products’ marketing, development of new design as well as product, and better packaging by setting up a growth-driven marketing infrastructure.
  • To facilitate skill development training to concerned artisans& improve their ability via better training & trips for exposure.
  • To set up an arrangement for shared facilities and render quality tools to the artisans involved.
  • To improve cluster governance via proactive participation of various stakeholders. This will improve their ability to counter pressing issues and access emerging opportunities, thereby letting them make informed decisions for the collective good.
  • To emphasize innovative skills, improved process, new technology, market intelligence, & public-private partnership models that can be copied on identical cluster model based traditional industries.
  • To look for opportunities to set up a multi-product cluster that embraces an integrated value chain. To leverage a market-based approach for the sustainability of the cluster and the financial viability of the project in the long term. 
  • To identify potential consumer base for cluster products and comprehend their aspirations, thereby helping in setting up a production line to met requirements.
  • To supersede supply-oriented sales models with market-based models and to pay attention to branding, product mix, & pricing for improving sales.
  • To outline a strategy for selling cluster products via a different online channel and e-commerce portal.
  • To support & asset in the production design and quality to meet the desired quality standard of products.

Read our article:MSME Loan – Tips to get it in a hassle-free way

Funding Details Related to SFURTI Scheme

The financial aid to be furnished under the said scheme by the GOI, for various projects has been limited to a maximum value which is Rs. 8 crores.

Funding Details Related to SFURTI Scheme
Note: J&K/ North-Eastern states and other states have access to the provision of a 50% reduction in the term of artisans employed in number per cluster.

Nodal Agencies

  • Khadi & Village Industries Commission acts as a Nodal Agency to advocate Cluster development for Khadi as well as rural-based industries.
  • Similarly, the Coir Board will serve as a nodal agency for coir-based clusters.

Scheme interventions under SFURTI Scheme

The types of interventions encompassed under the SFURTI scheme includes:

Soft Interventions

This encompasses general awareness of the scheme, trust-building, counseling, & motivation. Apart from that, it also facilitates skill development of artisans, capacity building, & establishing institutions. Other measures includeexposure visit of artisans and product design, & development.

Hard interventions

Setting up clusters for different products as well as packaging. Other measures include advancement of technology, raw material banks, training centers, facility centers, &warehousing facilities.

Thematic interventions

This encompasses different clusters in a single sector that pay attention to both local and global markets. These initiatives got the backing ofbrand building, marketing campaigns, market exploration via e-commerce sites.

Potential Applicants of the SFURTI Scheme

The potential applicants of the SFURTI scheme are as follow:

  • Central as well as State Government[1] institutions
  • Non-Government Organizations, aka NGOs.
  • Semi-Government institutions
  • Panchayati Raj institutions, aka PRIs
  • State & Central Govt. field functionaries
  • Corporate responsibility foundations
  • Private sector with special SPV

How to apply for the SFURTI Scheme?

Eligible organizations seeking to avail of the said scheme should submit their proposals to the relevant state office or KVIC. Before forwarding the proposal for approval, the same is examined by the officials at the State and the Zonal levels.

Use the given URL to apply for the SFURTI Scheme

Cluster Selection Criteria for SFURTI Scheme

  • The clusters ought to exist within the vicinity of 500 beneficiary families that includes traders, artisans, raw material suppliers, traders, etc. Furthermore, these clusters should be present within at least two subdivisions of a district.
  • The clusters ought to be based on coir, khadi, & rural companies that include leather pottery, etc.
  • The growth potential and opportunity to create jobs and other important parameters being considered under the SFURTI scheme.
  • Clusters’ geographical distribution across the nation. At least ten percent of the clusters should find their place in the Northeast states of India.

Under the SFURTI scheme, the GOI has projected to set up 70 clusters with a budget allocation of Rs. 149.44 crores. The Government is also eyeing setting up 800 clusters under the 12th five-year plan via funding from the Asian Development Bank and Central Government. The government offers 3 years for the scheme’s deployment related to each cluster.

Approx. 154 clusters were approved by the Indian government under the said scheme from 2018 to 2020.


SFURTI scheme is a growth-driven initiative of GOI that came to effect in the year 2005. The scheme aims the integrate rural-based industries in different parts of the nation so they can become competitive, financially stable& profitable. To serve this purpose, the Indian government has allocated funds and appointed nodal agencies. The idea is to overhaul the deteriorating conditions of the rural-based industries and instill some resilience in them.

Read our article:How MSME Registration Can Ensure Business Growth?

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