Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI), was launched in 2005 to foster clustered economic growth in the nation. The Khadi and Village Businesses Council (KVIC) acts as the focal point for the advancement of Khadi Clusters. As an alternative, Coir Board serves as the hub organisation for coir-related clusters. 

This program was implemented to boost the conventional artisan industry, increase its profitability, strengthen its nationwide presence, increase its visibility, and ensure profitability. There will soon be additional job opportunities and shared facility hubs, making this plan especially attractive to artisans employed in the traditional sectors.

The main aim of the SFURTI scheme is to organise traditional industries into competitive clusters, provide sustainable employment for artisans, and enhance the marketability of their products. Here is a summary of the scheme’s objectives: 

• Enhancing Cluster Competitiveness 

The scheme aims to bring artisans and traditional industries together as organised clusters to improve their competitiveness and ensure long-term viability. 

• Boosting Market Appeal 

It works to improve the market potential of cluster products by supporting better designs, refined packaging, new product development, and stronger marketing infrastructure. 

• Improving Shared Infrastructure 

The programme helps artisans access upgraded tools, common facilities, and modern equipment so they can use available resources more efficiently. 

• Supporting Rural Livelihoods 

SFURTI focuses on creating stable and long-term income opportunities for rural entrepreneurs and traditional artisans across different sectors. 

• Upgrading Artisan Skills 

It aims to strengthen artisan capabilities through training, exposure visits, and structured learning that help them adopt improved skills and better work practices. 

• Strengthening Cluster Governance 

The scheme encourages a strong governance structure by involving all stakeholders to understand challenges, explore opportunities, and take coordinated action. 

• Promoting Modern Processes and Technologies 

The programme supports innovation by encouraging newer skills, advanced production methods, updated technologies, and stronger PPP models within the clusters. 

• Building Integrated Value Chains 

SFURTI aims to set up multi-product clusters backed by a market-led approach and a complete value chain to ensure sustainable growth. 

• Ensuring Operational Convergence 

It promotes alignment and coordination of all cluster activities, from formation to daily operations, to improve efficiency. 

• Understanding Target Customers 

The scheme encourages clusters to study customer needs and create product lines that match market expectations and emerging preferences. 

• Developing Focused Product Ranges 

It supports building specialised product lines tailored to specific consumer segments, moving away from a mix of unrelated or scattered products. 

• Shifting to a Market-Driven Model 

SFURTI encourages clusters to adopt stronger branding, better pricing, and the right product mix to move from a supply-led model to a demand-led model. 

• Expanding through E-commerce 

The programme promotes digital sales by helping clusters tap online marketplaces and strengthen their presence in the growing e-retail segment. 

• Improving Product Quality 

It supports meaningful investments in better product design and overall quality enhancement to ensure higher acceptance in competitive markets. 

Revised SFURTI Scheme Guidelines of September 2022

The Ministry of Micro, Small & Medium Enterprises issued revised guidelines for the SFURTI Scheme on 9th September 2022, with a number of key changes to its aim and objectives: 

• Higher Financial Backing 

The revised framework offers increased budget support for each cluster, based on its scale, growth potential, and operational needs.

• Wider Sector Coverage 

More categories, including eco-friendly crafts and sustainable traditional industries, are now part of the scheme.

• Quicker Project Approvals 

The update encourages faster decision-making and a more decentralised approval process to speed up project rollout.

• Stronger Digital Market Focus 

Greater importance is placed on e-commerce, helping artisans promote and sell their products more effectively online.

• Improved Skill Development Linkages 

The guidelines strengthen partnerships with skill-building initiatives and industry collaborators to help artisans upgrade their abilities. 

• Better Financial Convergence 

The scheme now aligns more smoothly with other financial programmes, including easier access to MSME loan facilities.

A key part of SFURTI is the approval of cluster‑based projects where a mix of interventions are provided. These interventions fall into three broad categories: ‘Soft’, ‘Hard’, and ‘Thematic’. 

Soft Interventions

• These activities help build awareness, confidence, and trust among artisans.

• They focus on skill training and capacity development for better productivity.

• Institutions receive support to strengthen their internal systems and processes.

• Exposure visits help artisans learn new methods and industry best practices.

• Market promotion efforts improve product visibility and customer reach.

• Design and product development initiatives support innovation and differentiation.

• Training sessions and workshops help artisans adopt upgraded technologies.

Hard Interventions

• These interventions create essential physical infrastructure for cluster operations.

• Multipurpose facilities support production, packaging, and related activities.

• Common Facility Centres (CFCs) offer shared tools and machinery.

• Raw Material Banks (RMBs) ensure timely access to essential inputs.

• Production systems are upgraded with improved tools and technology.

• Warehousing and storage spaces support efficient inventory handling.

• Training centres help artisans improve skills through structured learning.

• Processing and value-addition units increase the overall market value of products.

Thematic Interventions

• These interventions support multiple clusters operating within the same sector.

• They strengthen branding efforts for domestic and international markets.

• Digital and new-media marketing initiatives enhance product outreach.

• E-commerce support helps clusters expand into online retail channels.

• The focus remains on innovation and sector-wide growth opportunities.

The following types of registered Indian businesses and business owners are eligible for the SFURTI scheme:

• Collectives that are not part of the government (NGOs)

• Partially-owned governmental organisations

• Institutions of the federal and state governments

• Community rule organisations (also known as PRIs)

• Agents of the state and federal governments in various fields

To apply for the SFURTI scheme, one must furnish the following documents for speedy verification:

• Proof of Ownership

• Proof of Business Registration

• Income and P&L statements

• KYC documents such as ID proof, residential address, PAN details, etc.

To apply for the SFURTI scheme, eligible agencies need to register on the official portal, fill out the application form online, upload all required documents, and submit the application. Alternatively, one can also write a proposal and submit it offline to the local KVIC office. 

Online Method

Here are the steps to apply for the SFURTI Scheme online: 

• Visit the official MSME website to access SFURTI details and download the required application formats. 

• Select a traditional industry cluster that is suitable for development under the scheme.

• Prepare a Detailed Project Report outlining goals, budgets, stakeholders, facilities, and your proposed implementation plan.

• Create a Special Purpose Vehicle, if required, by registering a society, cooperative, or company.

• Submit the DPR and proposal to the designated Nodal Agency for further processing.

• Wait for evaluation, as the Technical Agency and Scheme Steering Committee will assess and approve the project.

• Begin implementation once approval is granted, with funds released in stages and cluster activities rolling out accordingly.

Offline Method

Follow the steps mentioned below to apply for the SFURTI scheme offline:

• Visit the nearest KVIC and SFURTI State Office in your area.

• Submit a proposal containing the business details and P&L data.

• After evaluation by the State and Zonal committees, you’ll receive an intimation about approval or with a request to submit further documents. 

• After verification, your request will be sent to the SFURTI Scheme Steering Committee for the final approval.

• After this, the requisite loan is granted immediately. 

The SFURTI Scheme plays a crucial role in strengthening traditional industries by improving skills, infrastructure, market access, and long-term sustainability for artisan clusters. Its structured support empowers communities to scale efficiently and compete in modern markets. To further accelerate cluster growth or meet additional project needs, entrepreneurs can also explore a suitable business loan to enhance their implementation capacity.