SFURTI Scheme – Funding Details, Objectives & Full Form

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 Common Facility Centers (CFCs) for generating sustained employment opportunities.

The focused sectors on which SFURTI will work are Bamboo, Honey, and Khadi clusters. In the year 2019-20, SFURTI plans to set up 100 new clusters to enable 50,000 artisans economically.

Funding to support Soft, Hard, and Thematic Interventions under SFURTI

The financial assistance provided under the SFURTI scheme for any specific project shall be subject to a maximum of Rs 8 crore.

Type of Clusters	Per Cluster Budget Limit
Heritage Clusters (1000 – 2500 artisans)	Rs. 8 crore
Major Clusters (500 – 1000 artisans)	Rs. 3 crore
Mini – Clusters (Upto 500 artisans)	Rs. 1 crore

Note: For North Eastern Region / J&K and Hill States, there will be a 50% reduction in the number of artisans per Cluster.

Eligible Entities that offer Loans under SFURTI Scheme

• Corporates and Corporate Responsibility (CSR) Foundations
• Field functionaries of State and Central Governments
• Semi-Government Institutions and Institutions of the Central and State Governments
• Non-Government Organizations (NGOs)
• Panchayati Raj Institutions (PRIs)
• Private sector by forming cluster specific SPVs

Objectives

• To organize the artisans and traditional industries into clusters for better competitiveness
• To provide the support for enhancing employment opportunities and to increase the marketability of products of such clusters
• To improve the skills of artisans
• To make provision for improved tools and equipment for artisans
• With the active participation of the stakeholders, strengthening the cluster governance systems

Under the SFURTI scheme, approximately 70 clusters will be developed across the country involving an expenditure of Rs. 149.44 crores. Further, under the 12th Five Year Plan it is stated that by the funding provided by the Government of India and Asian Development bank, around 800 clusters are proposed. Three years are allotted by the Government of India for the implementation of the project for each cluster.

Eligible Entities

The below-mentioned entities can apply for the SFURTI scheme:

• Corporates and Corporate Responsibility (CSR) Foundations
• Field functionaries of State and Central Governments
• Institutions of the Central and State Governments
• Non-Government Organizations (NGOs)
• Panchayati Raj institutions (PRIs)
• Private sector by forming cluster-specific SPVs
• Semi-Government Institutions

Apply for Loan under SFURTI

To apply for loan under SFURTI scheme, eligible entities/agencies/organizations are required to submit the proposal to the State Office, KVIC and the same is checked at the State Level and Zonal Level before submitting to the Scheme Steering Committee for final approval.

FAQs

Q1. What is SFURTI?

Ans. Scheme of Fund for Regeneration of Traditional Industries (which is SFURTI full form), launched in 2005 by the Ministry of MSMEs (MoMSME) and Government of India to promote cluster development that shall further enable traditional industries to be even more productive and profitable.

Q2. What is the financial assistance allowed under Revamped SFURTI?

Ans. The financial assistance provided for Revamped SFURTI is classified into three types of clusters, along with budget limit per cluster:

• Heritage (1000 to 2500 artisans) – Rs. 8 crore
• Major (500 to 1000 artisans) – Rs. 3 crore
• Heritage ( 150 to 500 artisans) – Rs. 1.50 crore

Q3. What is the duration of the Project?

Ans. The duration for the implementation of the project will be 3 years.