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SFURTI- Scheme of Fund for Regeneration of Traditional Industries

SFURTI Scheme (Scheme of Fund for Regeneration of Traditional Industries) – Complete Guide
Introduction
The SFURTI (Scheme of Fund for Regeneration of Traditional Industries) is a flagship cluster development scheme of the Government of India aimed at revitalizing traditional industries, artisans, and rural enterprises. Implemented under the Ministry of Micro, Small and Medium Enterprises (MSME), SFURTI focuses on organizing traditional industries into clusters, enhancing productivity, improving market access, and creating sustainable employment.
This SEO-optimized guide is designed for NGOs, implementing agencies, CSR partners, training institutions, and consultants engaged in skill development, livelihood promotion, and cluster-based economic development.
Launch Date and Evolution
  1. Original Launch: 2005-06
  2. Revamped: 2015 (major restructuring for cluster-based approach and higher funding)
  3. Administered By: Ministry of MSME, Government of India
The scheme was redesigned to strengthen cluster competitiveness, introduce soft and hard interventions, and integrate market-driven strategies.
Key Objectives of SFURTI
  1. Regenerate traditional industries and artisan clusters
  2. Promote cluster-based sustainable livelihoods
  3. Enhance productivity through technology and skill upgradation
  4. Strengthen market linkages and branding
  5. Support rural industrialization and inclusive growth
Implementing Authorities
Nodal Ministry
  1. Ministry of Micro, Small and Medium Enterprises (MSME)
Nodal Agencies
  1. Khadi and Village Industries Commission (KVIC)
  2. Coir Board (for coir-based clusters)
Implementing Agencies (IA)
  1. NGOs
  2. Trusts and Societies
  3. State Government agencies
  4. CSR arms of corporates
Technical Agencies (TA)
  1. Appointed for cluster diagnostics, DPR preparation, and monitoring
Key Functions and Components
1. Cluster Development Approach
SFURTI organizes traditional industries into clusters (typically 500–2500 artisans) for economies of scale.
2. Soft Interventions
  1. Skill development and capacity building
  2. Exposure visits
  3. Design and product development
  4. Market promotion
3. Hard Interventions
  1. Common Facility Centres (CFCs)
  2. Infrastructure development
  3. Machinery and tools
4. Thematic Interventions
  1. Branding and packaging
  2. E-commerce integration
  3. Export promotion
Types of Clusters
  1. Regular Clusters: Up to 500 artisans
  2. Major Clusters: 500–2500 artisans
  3. Heritage Clusters: Traditional crafts with national/international importance
Financial Assistance Pattern
Cluster Type
Maximum Project Cost
Regular Cluster
Up to ₹2.5 Crore
Major Cluster
Up to ₹5 Crore
Heritage Cluster
Up to ₹8 Crore
Funding Components
  1. Soft Interventions: Up to ₹25 lakh
  2. Hard Interventions (CFC): Majority of funding
  3. Thematic Interventions: Branding, marketing, digital enablement
Eligibility Criteria
Beneficiaries (Artisans)
  1. Traditional artisans and rural workers
  2. Self Help Groups (SHGs)
  3. Producer Groups
  4. Existing informal clusters
Implementing Agencies (Employers/Facilitators)
  1. NGOs with 3+ years of experience
  2. Government institutions
  3. CSR foundations
  4. Cooperative societies
Eligible Industries
  1. Khadi and village industries
  2. Handloom and handicrafts
  3. Coir industry
  4. Bamboo and forest-based products
  5. Agro-based rural industries
Application & Implementation Process
  1. Cluster identification and diagnostic study
  2. DPR preparation by Technical Agency
  3. Approval by Scheme Steering Committee
  4. Fund release in phases
  5. Implementation of soft and hard interventions
  6. Monitoring and evaluation
Fund Allocation & Utilization (Last 5 Financial Years)
Indicative Data (Based on MSME & KVIC Reports)
Financial Year
Budget Allocation (₹ Crore)
Funds Utilized (₹ Crore)
Clusters Supported
Artisans Benefited (Approx)
2020-21
~250
~220
~70
~50,000
2021-22
~300
~275
~85
~65,000
2022-23
~320
~300
~90
~75,000
2023-24
~350
~330
~100
~85,000
2024-25*
~400
~360
~110
~95,000
*Provisional/estimated based on recent releases and scheme expansion trends.
Impact Analysis
Economic Impact
  1. Increased artisan incomes by 20–40% in many clusters
  2. Improved productivity through modern tools and shared infrastructure
Social Impact
  1. Empowerment of women artisans
  2. Promotion of traditional crafts and heritage
Institutional Impact
  1. Strengthening of cluster-based institutions
  2. Increased participation of NGOs and CSR agencies
Role in Skill Development Ecosystem
SFURTI aligns with Skill India by:
  1. Providing skill upgradation training
  2. Creating entrepreneurship opportunities
  3. Linking training with production and market access
  4. Supporting livelihood-based skilling programs
Benefits of SFURTI Scheme
  1. Cluster-based development ensures scalability
  2. Government funding reduces capital burden
  3. Strong market linkage support
  4. Promotes rural and traditional economy
  5. Encourages public-private partnerships
Challenges
  1. Delays in DPR approvals
  2. Limited awareness among grassroots organizations
  3. Capacity gaps in implementing agencies
  4. Market linkage sustainability issues
How SkillCouncils.com Can Support
SkillCouncils.com provides:
  1. SFURTI DPR preparation and cluster design
  2. Technical agency support and consultancy
  3. CSR partnership facilitation
  4. Skill training integration within clusters
  5. Proposal writing and government liaison
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Sources
  1. Ministry of MSME – Government of India
  2. SFURTI Scheme Guidelines (MSME)
  3. KVIC Official Website (https://www.kvic.gov.in)
  4. Coir Board India (https://coirboard.gov.in)
  5. MSME Annual Reports (2020–2025)
  6. Press Information Bureau (PIB)
  7. Parliamentary Budget Documents
Conclusion
SFURTI is a transformative initiative for revitalizing India’s traditional industries through cluster-based development. With increasing funding and strong institutional support, it offers significant opportunities for NGOs, CSR agencies, and skill development organizations to create sustainable livelihood models.
For stakeholders in the skill ecosystem, SFURTI provides a powerful platform to integrate training, production, and market access into a unified development strategy.
 
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