The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a flagship cluster development initiative launched by the Ministry of Micro, Small and Medium Enterprises to strengthen traditional industries and improve the livelihood of artisans across India. (SFURTI Scheme)
If you are running a khadi unit, coir-based enterprise, bamboo cluster, honey processing unit, handicraft group, or any other traditional business, SFURTI can provide infrastructure, technology, marketing support, and capacity building assistance.
This guide explains everything MSMEs need to know about SFURTI — benefits, eligibility, funding pattern, and step-by-step process.
What is SFURTI Scheme?
SFURTI was launched in 2005 and revamped to promote cluster-based development of traditional industries. The scheme aims to:
- Organize artisans into clusters
- Provide modern infrastructure and common facility centers (CFCs)
- Improve product quality and competitiveness
- Increase income and employment opportunities
- Support marketing and branding efforts
The scheme is implemented through agencies such as:
- Khadi and Village Industries Commission (KVIC)
- Coir Board
- Other designated Nodal Agencies (NAs)
Key Objectives of SFURTI for MSMEs
- Revival of traditional industries like khadi, coir, bamboo, honey, handicrafts, and village industries.
- Cluster-based development to improve economies of scale.
- Skill upgradation & training for artisans.
- Access to modern tools and machinery.
- Improved market access through exhibitions, branding, and e-commerce integration.
Types of Clusters Under SFURTI Scheme
SFURTI supports three categories of clusters:
1. Regular Clusters
- 500–1000 artisans
- Suitable for medium-sized traditional industries
2. Major Clusters
- More than 1000 artisans
- Large-scale intervention with advanced facilities
3. Mini Clusters
- 50–200 artisans
- Ideal for small and emerging artisan groups
Financial Assistance Under SFURTI Scheme
Funding varies depending on the cluster type:
| Cluster Type | Maximum Government Support |
|---|---|
| Mini Cluster | Up to ₹2.5 crore |
| Regular Cluster | Up to ₹5 crore |
| Major Cluster | Up to ₹8 crore |
The assistance typically covers:
- Common Facility Centers (CFCs)
- Raw material banks
- Training & skill development
- Product design development
- Marketing support
- Soft interventions (branding, exposure visits, etc.)
Who Can Apply for SFURTI?
Eligible entities include:
- NGOs working with artisan groups
- Trusts and societies
- Producer companies
- Self Help Groups (SHGs)
- Cooperative societies
- Government institutions
- Panchayati Raj institutions
Individual MSMEs cannot apply alone but can become part of a registered cluster.
How MSMEs Benefit from SFURTI
1. Shared Infrastructure
Access to modern machinery without heavy capital investment.
2. Reduced Production Cost
Bulk raw material procurement lowers input costs.
3. Market Expansion
Participation in trade fairs, exhibitions, and digital platforms.
4. Brand Development
Support for packaging, labeling, and product positioning.
5. Income Growth
Improved productivity and quality increase profitability.
Step-by-Step Process to Apply for SFURTI
- Formation of artisan cluster group.
- Identification of Implementing Agency (IA).
- Preparation of Detailed Project Report (DPR).
- Submission to Nodal Agency (KVIC/Coir Board).
- Approval by Scheme Steering Committee.
- Release of funds in phases.
- Implementation & monitoring.
MSMEBytes Thoughts
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a powerful opportunity for traditional MSMEs and artisan clusters to modernize, scale, and compete in national and international markets.
If you are part of a traditional industry, joining or forming a cluster under SFURTI can:
✔ Improve productivity
✔ Reduce operational cost
✔ Strengthen branding
✔ Increase income
✔ Create sustainable employment
For MSMEs in traditional sectors, SFURTI is not just a subsidy scheme — it is a long-term growth strategy.
FAQs on Scheme of Fund for Regeneration of Traditional Industries (SFURTI Scheme)
1. What is the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a cluster development scheme launched by the Ministry of Micro, Small and Medium Enterprises to support traditional industries like khadi, coir, bamboo, honey, and handicrafts. It helps artisans by providing infrastructure, skill training, modern tools, and marketing support.
2. Who implements the SFURTI scheme in India?
SFURTI is implemented by nodal agencies such as the Khadi and Village Industries Commission (KVIC) and the Coir Board, along with other designated national-level agencies.
3. Who is eligible to apply for the SFURTI scheme?
Under SFURTI, NGOs, trusts, cooperative societies, producer companies, Self Help Groups (SHGs), and government institutions can apply. Individual MSMEs cannot apply directly but can become members of a registered artisan cluster.
4. How much financial assistance is provided under SFURTI?
Financial assistance depends on the cluster type:
- Mini Cluster: Up to ₹2.5 crore
- Regular Cluster: Up to ₹5 crore
- Major Cluster: Up to ₹8 crore
The funds are used for common facility centers, training, raw material banks, branding, and marketing.
5. How can an MSME benefit from the SFURTI scheme?
An MSME can benefit by joining a cluster and gaining access to shared machinery, modern infrastructure, skill development programs, branding support, and participation in trade fairs. This reduces costs and improves product quality and income.
6. What industries are covered under the SFURTI scheme?
SFURTI mainly supports traditional industries such as:
- Khadi
- Coir
- Bamboo
- Honey processing
- Handicrafts
- Village industries
It focuses on preserving heritage industries while making them competitive.
7. What is a Common Facility Center (CFC) under SFURTI?
A Common Facility Center (CFC) is a shared infrastructure facility created under SFURTI where cluster members can access modern machinery, processing units, testing facilities, storage, and packaging units.
8. Is Udyam Registration mandatory for SFURTI?
Udyam Registration is not mandatory for cluster formation, but MSMEs are encouraged to register on the Udyam portal to avail additional government benefits and formal recognition.
9. How long does it take to get approval under SFURTI?
Approval timelines vary depending on documentation, DPR quality, and nodal agency evaluation. It usually takes several months from proposal submission to final approval.
10. How can I apply for the SFURTI scheme?
To apply:
- Form an artisan cluster.
- Identify an Implementing Agency (IA).
- Prepare a Detailed Project Report (DPR).
- Submit the proposal to KVIC, Coir Board, or designated nodal agency.
- Await approval from the Scheme Steering Committee.
11. What is the main objective of SFURTI?
The main objective of SFURTI is to organize traditional artisans into sustainable clusters, improve their productivity, enhance income levels, and strengthen their market presence.
12. Is SFURTI only for rural industries?
SFURTI primarily supports rural and traditional industries, but urban artisan clusters working in traditional sectors can also be eligible if they meet scheme guidelines.
Keywords: SFURTI scheme, MSME clusters, traditional industries, government grants for artisans, Common Facility Center, KVIC scheme, rural entrepreneurship India.