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SFURTI Scheme: Objectives, Target Sectors and Beneficiaries

Ashish M. Shaji

| Updated: Jun 18, 2021 | Category: MSME

SFURTI Scheme

SFURTI means Scheme of Fund for Regeneration of Traditional Industries. MSME, Govt. of India launched this scheme in 2005 to promote cluster development. Various other schemes have been merged into SFURTI scheme since its inception. In this article, we shall discuss more about this scheme. 

Objectives of SFURTI Scheme

The objectives of this scheme are as follows:

  •  To organize traditional industries and artisans into clusters with a view to make them competitive and provide support for their long term sustainability;
  • To provide sustained employment opportunities for traditional industry artisans and rural entrepreneurs;
  • To increase marketability of products of the clusters by providing support with respect to new products, design intervention etc.;
  • To equip traditional artisans with the improved skills and capabilities through proper training and exposure visits;
  • To make provision for common facilities and improved tools for artisans to promote optimum utilization of infrastructure facilities;
  • To strengthen cluster governance systems with active participation of stakeholders so that they can gauge the challenges and opportunities and address them;
  •  To build innovative and traditional skills, advance processes, market intelligence, technologies to gradually replicate models of cluster;
  • To look for setting up of multi-product cluster with an integrated value chain and a market-driven approach for long term sustainability of the cluster;
  • To make sure convergence from the design stage;
  • To understand and identify target customers of the cluster, understand their needs and develop and present product lines to meet the requirement. A substantial focus must be on the buyer segment;
  • To develop particular product lines out of the presently offered diversified basket of heterogeneous products based on the understanding of the target consumers. A brand unification exercise should be done to maximize the value;
  •  To ensure a paradigm shift from a supply driven selling model to a market driven with the proper branding;
  • To tap the e-commerce as an essential marketing channel given the outreach and the growing market penetration of e-commerce. There should a quick strategy devised to make its presence known in the e-retail space;
  • To make a sizeable investment in the area of product design and quality improvement. Further, to standardize the quality of inputs and processes so that the products may meet the quality benchmarks. Proper research should be done to develop new textures to cater to the market trends prevailing in the market.

Target Sectors and beneficiaries: SFURTI Scheme

The target sectors and potential beneficiaries are:

  • Artisans, workers, raw material providers, entrepreneurs, machinery makers, institutional and private business development service providers;
  • Artisan guilds, co-operatives, consortiums, enterprises network, SHGs, enterprise associations etc;
  • Implementing agencies, field functionaries of government institutions/organizations & policymakers, engaged in traditional industries.

What is the criteria for selection of clusters?

The clusters selection is based on their geographical concentration, which has to be around 500 beneficiary families of artisans/micro enterprises, raw materials suppliers, traders, service providers etc., which is situated within one or two revenue sub-divisions in a district.

The potential for growth in production and employment opportunities generation will be considered in selecting clusters under the SFURTI scheme. The geographical distribution of clusters in the country, with minimum of 10% in the NE region, shall be kept in view while selecting clusters.

Who may apply for the SFURTI Scheme?

These entities may apply for this scheme:

  • Corporates and CSR Foundations;
  • Field functionaries and central governments;
  •  Central and State Government Institutions;
  • Panchayati raj Institutions[1];
  • Semi-government institutions;
  • Private sector by forming clusters specific SPVs.

Financial Assistance

The financial support for any project will be a maximum of 8 crore rupees:

  • For heritage clusters (1k-2500 artisans), 8 crore rupees budget limit will be provided;
  • For significant clusters (500-1000 artisans), 3 crore rupees budget limit will be provided;
  • In case of mini cluster (up to 500 artisans), 1.50 crore rupees budget limit will be provided;
  • In case of NE Region/J &K and Hilly States, there would be a 50% reduction in the artisan’s number per cluster.

Implementing agencies

The implementing agencies would include NGOs, institutions of the Central & State Governments & Semi-Govt. Institutions, field functionaries of the state and Central Govt, Panchayati Raj Institutions etc., with proper expertise to undertake cluster development. 

One IA would be assigned for one cluster unless it’s an agency with statewide coverage. The selection of them would be based on the regional reputation and experience of working at the grass-root levels, shall be made by the Nodal Agencies, considering the transparent criteria.

Conclusion

The Scheme of Fund for Regeneration of Traditional Industries or the SFURTI Scheme was launched by the MSME, Govt. of India in 2005 to promote cluster development. Various other schemes have been merged into this scheme since its inception.

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Ashish M. Shaji

Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on criminal and corporate law. He is a creative thinker and has a great interest in exploring legal subjects.

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