Everything to know about the SFURTI scheme: full form, eligibility, and objectives

The Ministry of MSMEs and the Government of India introduced the SFURTI Scheme in 2005. The SFURTI scheme's full form is the Scheme of the Fund for Regeneration of Traditional Industries. The scheme aims to establish collectives among traditional industries' artisans and producers to support them in producing competitive, high-quality goods that will guarantee the sector's future viability.

The SFURTI project vision is to increase artisanal income by focusing on the development of physical infrastructure, technology upgrades, training, product development, creative interventions, marketability, better packaging, and marketing infrastructure. Traditional industries are broadly categorised into three main types: Khadi Industries, Village Industries, and Coir Industries.

Eligibility for the SFURTI scheme and Cluster Criteria:

  • These are all the eligible individuals and groups that can apply for the SFURTI Scheme:
    1. Non-government organisations (NGOs)
    2. Institutions of the Central and State Governments
    3. Semi-Government institutions
    4. Field functionaries of the state and central governments.
    5.Panchayati Raj institutions (PRIs)

  • Clusters will be selected based on geographic concentration, encompassing about 500 beneficiary families of artisans, microenterprises, raw material suppliers, traders, and service providers in one or two revenue subdivisions within a district or contiguous districts.

  • When choosing clusters under SFURTI, the possibility of increased output and the creation of job possibilities will also be taken into account.

  • When choosing clusters, consideration will also be given to the clusters' geographic distribution around the nation, with at least 10% of them being in the Northeast.

Objectives of the SFURTI Scheme:

Conventional industries have a low level of organisation, so the program aims to group craftspeople into clusters and provide them with long-term sustainability support. It offers work options for craftspeople and rural business owners reliant on traditional industries. It assists with packaging, design modifications, and new product creation while helping clusters develop marketing infrastructure to reach a wider audience.

Additionally, it provides artisans with training to advance their skills through sessions and exposure trips, offers shared resources like raw material banks, and supplies better tools and equipment to boost output.

The scheme seeks to build and increase cluster governance structures with active stakeholder participation, developing market intelligence and both conventional and innovative skills. By implementing cutting-edge procedures and upgraded technologies, clusters can increase productivity, and creating public-private partnership models can lead to the replication and restoration of other conventional businesses based in clusters.

Project Intreventions in the SFURTI Scheme

The scheme covers three categories of interventions, i.e., soft, hard, and thematic interventions. Soft interventions encompass market promotion campaigns, exposure trips, skill development, capacity building, institution development, counselling, motivation, trust-building, design and product creation, and general awareness through training sessions, workshops, and technological upgrade lectures.

Hard interventions involve constructing facilities like raw material banks (RMBs), multi-product and packaging facilities, and common facility centres (CFCs), upgrading production infrastructure, tools, and technology, and establishing warehousing, training, and value addition and processing centres.

Thematic interventions focus on sector-level, cross-cutting themes targeting both domestic and international markets. They cover multiple clusters within a sector and focus on innovation, e-commerce projects, new media marketing, and brand-building and promotion activities.

Institutional Arrangement for the SFURTI Scheme

  • Scheme Steering Committee (SSC): The Ministry of Micro, Small, and Medium Enterprises (MSME) will serve as the scheme's supervising ministry, providing overall policy, cooperation, and leadership support. A Scheme Steering Committee (SSC) will be formed under the chairmanship of the Secretary (MSME).

  • Nodal Agencies (NA): The Khadi and Village Industries Commission (which oversees Khadi and Village Industries clusters) and the Coir Board (which oversees Coir-based clusters) will be identified as the scheme's nodal agencies.

  • Technical Agencies (TA): Recognized national-level institutions with demonstrated competence in artisanal and small enterprise cluster development would be involved as TAs to give close supervision as well as execution support to the SFURTI clusters.

  • Implementing Agencies (IAs): They are non-governmental organisations (NGOs), Central and State Governmental institutions, semi-government institutions, field employees of the Central and State Governments, Panchayati Raj institutions (PRIs), etc., that possess the necessary knowledge and experience to carry out cluster development. If the agency is state-wide in its coverage, then a single IA will be allocated to a single cluster. The Nodal Agencies (NAs) will choose the IAs using open and transparent criteria, taking into account their track record in the area and their familiarity with grassroots initiatives.

Steps to apply for the SFURTI scheme: online and offline

Online apply:

  • Eligible agencies and organisations may submit their proposals online. The applicant/agency/organisation must visit the SFURTI Portal and register/sign up using their correct information.

  • Applicants/organisations must log in to the SFURTI Portal using their ID and complete the application.

  • Upload all essential documents and double-check the details.

  • Submit the application form for the SFURTI scheme.

Offline apply:

  • One must write a proposal and request funds.

  • Once you have completed the proposal report, you must send it to the KVIC office in your region.

  • KVIC then reviews the proposed report.

  • The state and zonal level offices then review the plan and request.

  • Once the proposal has been verified, it will be given to the Steering Committee for final approval.

  • When the steering committee approves the plan, the term loan is granted.

Documents Required for SFURTI Scheme:

1. The organisation's Certificate of Registration

2. The supporting organisation's endorsement (if any)

3. Organization's establishment date and synopsis upon registration

4. A list of the Board of Directors and Governing Body

5. Activity Area Details

6. Organization List with Formal Memorandums of Understanding or Links;

7. Annual Audited Statement & IT Returns for the Previous Three Years

8. Specifics of Awards & Recognitions

9. Team/Staff Experience Details

10. Bank Account Information

Note: Any additional documents, as needed

Create a proposal and project report for the SFURTI Scheme:

Here are some of the important components any proposal or project report should include:

  • Cluster Profile

  • Artisans' Profile

  • Product Profile

  • Market assessment and demand analysis

  • Detailed intervention strategy (soft, hard, theme)

  • Project costs and financing options

  • Project timelines

  • Detailed company strategy (sales data, receipts, payments, income, and expenses should be included)

Financial Support in the SFURTI Scheme

  • The maximum amount of funding that can be given for any one project is Rs. 5 crore. The budget limit for regular clusters, accommodating up to 500 artisans, is Rs. 2.50 crore. For significant clusters with more than 500 artisans, the budget limit is Rs. 5.00 crore.

  • NAs may also suggest clusters with fewer artisans, workers, etc., but the total number of artisans, workers, etc. should be at least 100 (50 for NER & Hilly areas). Under these circumstances, the SSC may take appropriate GIAs (grants-in-aid) into account before approving.

  • Land acquisition will be under the authority of the IA. Land purchases using funds from the scheme are not permitted. The cost of land will not be included in the overall cost of Hard Intervention. The promoter shall offer a monetary contribution to the hard intervention equal to 10/5%.

In conclusion, the implementation of the SFURTI scheme MSME project will take 12 months for regular clusters and 18 months for major clusters. The DPR would outline a quarterly funding requirement and phase-in of the interventions. For more information, contact us today.

Additional Read:

What is the MSME SFURTI scheme?

MSME registration process in india

MSME Loans for Small Businesses

How to enhance innovation in MSMEs?


For more information go to the link https://www.psbloansin59minutes.com/knowledge-hub/how-to-apply-for-sfurti-scheme

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