SFURTI Scheme 2025: Empowering India’s Traditional Industries

Introduction: Revitalising India’s Rich Heritage

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI), an ambitious initiative by the Ministry of MSME, Government of India, is designed to breathe new life into India’s invaluable traditional artisan-based industries. This scheme offers comprehensive support through financial assistance, crucial skill development, modern infrastructure, and vital market linkages. Its core aim is to empower artisans to not only sustain their craft but also to thrive and compete effectively in today’s dynamic markets.

SFURTI specifically targets a diverse range of traditional crafts, including handlooms, handicrafts, coir, bamboo, honey, khadi, and agro-processing. The scheme’s unique cluster-based approach, supported by dedicated implementing and technical agencies and Special Purpose Vehicles (SPVs), ensures efficient and impactful execution.

📅 Table of Contents

Objective of SFURTI: A Vision for Growth
Who is Eligible? Understanding the Criteria
Key Features and Financial Support: Fueling Growth
Activities Covered Under the Scheme: A Holistic Approach
Application Process Step-by-Step: Your Guide to SFURTI
Role of Implementing and Technical Agencies: The Driving Force
Project Cost and Government Funding: Investment in Tradition
Focus on Northeast and Hilly Regions: Prioritising Development
Common Mistakes to Avoid: Ensuring Success
Frequently Asked Questions (FAQs)
How Sigma Solutions Helps: Your SFURTI Partner
Conclusion: A Brighter Future for Artisans

1. Objective of SFURTI: A Vision for Growth

The SFURTI scheme is built upon a clear set of objectives aimed at the holistic development of traditional industries:

Regenerate and Organise: Transform traditional artisans into productive and cohesive clusters.
Enhance Marketability & Income: Improve the marketability, design, and overall income of artisans.
Modern Infrastructure: Provide state-of-the-art Common Facility Centres (CFCs) and advanced training infrastructure.
Foster Sustainability & Competitiveness: Promote long-term sustainability and competitiveness through effective branding and leveraging digital platforms.

2. Who is Eligible? Understanding the Criteria

SFURTI extends its support to artisan clusters across various vital sectors:

Handicrafts and Handlooms: Preserving and promoting India’s artistic legacy.
Agro-processing and Food-based clusters: Enhancing value addition in agricultural products.
Bamboo, Coir, Khadi, and Honey production: Boosting sustainable and rural industries.

Eligibility for the scheme primarily revolves around the formation of a Special Purpose Vehicle (SPV). This SPV must be supported by recognized entities such as:

NGOs (Non-Governmental Organisations)
SHGs (Self-Help Groups)
Cooperatives
Government Departments

3. Key Features and Financial Support: Fueling Growth

The SFURTI scheme offers substantial financial assistance tailored to the size of the clusters:

Clusters with up to 500 artisans: Eligible for financial support of up to Rs. 2.5 crore.
Clusters with more than 500 artisans: Can receive up to Rs. 5 crore in support.

The financial support is categorised into two main interventions:

Soft Interventions (up to Rs. 25 lakh):
- Training and Skill Upgradation: Enhancing artisan capabilities.
- Exposure Visits: Providing insights into best practices.
- Branding and Marketing: Promoting products effectively.
- Raw Material Bank: Ensuring a consistent supply of raw materials.
Hard Interventions:
- Common Facility Centres (CFCs): Establishing shared production and processing facilities.
- Quality Labs: Ensuring product quality and standards.
- Design Centres: Fostering innovation and new product development.
- E-commerce and Export Facilitation: Connecting artisans to global markets.

4. Activities Covered Under the Scheme: A Holistic Approach

SFURTI covers a comprehensive range of activities to ensure the holistic development of clusters:

Cluster formation and mobilisation: Bringing artisans together.
Skill development and design workshops: Equipping artisans with modern techniques.
Setting up of CFCs with modern equipment: Providing shared infrastructure.
Branding and product certification: Building trust and market recognition.
Buyer-seller meets and market exposure: Creating direct market linkages.
Packaging, e-commerce, and digital marketing: Enhancing product presentation and reach.
Raw material sourcing assistance: Ensuring efficient supply chains.

5. Application Process Step-by-Step: Your Guide to SFURTI

Navigating the SFURTI application process involves several crucial steps:

Identify Cluster: Begin by identifying a cluster with a minimum artisan base in a recognised traditional industry.
Form SPV: Establish a legal entity such as an NGO, SHG, or cooperative to serve as the Special Purpose Vehicle.
Draft DPR: Prepare a comprehensive Detailed Project Report (DPR), outlining project financials, objectives, and implementation plan.
Apply via SFURTI Portal: Submit your application online through the official SFURTI Portal: https://sfurti.msme.gov.in.
Appraisal: The application undergoes rigorous review by a Technical Agency (TA) and a Nodal Agency.
Sanction and Fund Disbursal: Upon approval, funds are sanctioned, and the implementation and monitoring phases commence.

6. Role of Implementing and Technical Agencies: The Driving Force

The success of SFURTI heavily relies on the collaborative efforts of key agencies:

Implementing Agency (IA): This agency is responsible for executing the project on the ground and managing the SPV.
Technical Agency (TA): The TA provides crucial technical support, guidance, and monitors the overall execution of the project.
Nodal Agency: This agency acts as a vital link, coordinating between the Ministry of MSME and the IAs, ensuring strict project compliance.

7. Project Cost and Government Funding: Investment in Tradition

The SFURTI scheme offers significant government funding to minimise the financial burden on clusters:

90% of the project cost is funded by the Government of India for general clusters.
For clusters in the Northeast, hilly regions, and Jammu & Kashmir, the funding goes up to 95%.
The SPV contribution is a manageable 10% (or 5% in special category areas).
100% grant is provided for all soft intervention components.
The scheme also covers the operational costs of both Technical Agencies (TAs) and Implementing Agencies (IAs).

8. Focus on Northeast and Hilly Regions: Prioritising Development

SFURTI places a special emphasis on promoting traditional industries in the Northeast and hilly regions:

95% project funding by the Government of India.
Priority given to tribal crafts, bamboo, agro, and honey clusters, recognising their unique potential.
Lower SPV contribution threshold to encourage participation from these areas.
Strong encouragement for women-led clusters and innovation in coir-based industries.

9. Common Mistakes to Avoid: Ensuring Success

To maximize your chances of success with SFURTI, it’s crucial to avoid common pitfalls:

Incomplete DPRs or outdated artisan data: Ensure your Detailed Project Report is thorough and accurate.
SPV lacking legal or cooperative structure: Verify that your Special Purpose Vehicle meets all legal requirements.
Poor coordination between IA and TA: Foster strong collaboration between the Implementing and Technical Agencies.
Ignoring branding, logistics, and raw material planning in DPR: A comprehensive plan should address all aspects of the business.

10. Frequently Asked Questions (FAQs)

Here are answers to some of the most common questions about the SFURTI Scheme:

Q1. Can an individual artisan apply?
No. SFURTI is a cluster-based scheme; individual applications are not accepted.

Q2. What is an SPV?
An SPV (Special Purpose Vehicle) is usually an NGO, SHG, or Cooperative that manages and executes the cluster project.

Q3. What is the project duration?
The typical project duration is 2 years from the date of approval.

Q4. Can land cost be included?
No. The cost of land for project activities must be arranged separately by the SPV or IA.

Q5. Are artisans paid during training?
Stipends for artisans during training may be included under the soft intervention component, but they are not guaranteed.

Q6. Can multiple villages form one cluster?
Yes, multiple villages can form a single cluster if they are linked by a common craft or industry.

Q7. What sectors qualify?
Key qualifying sectors include handicrafts, khadi, coir, honey, bamboo, food-processing, and other traditional industries.

Q8. Can SFURTI help with e-commerce?
Yes. The scheme explicitly includes support for digital marketing and e-commerce facilitation to help artisans reach wider markets.

Q9. How is performance evaluated?
Performance is evaluated through third-party reviews, geo-tagged updates of progress, and regular audits by relevant agencies.

Q10. Who monitors the scheme?
Nodal Agencies and Technical Agencies (TAs) under the Ministry of MSME are responsible for monitoring the scheme’s progress and compliance.

11. How Sigma Solutions Helps: Your SFURTI Partner

Navigating the complexities of the SFURTI scheme can be challenging. Sigma Solutions offers comprehensive guidance and support throughout the entire SFURTI lifecycle, ensuring a smooth and successful application and implementation process.

We assist with:

✅ Cluster identification and SPV formation: Guiding you through the initial setup.
✅ DPR preparation with budget and milestones: Crafting a robust and compliant Detailed Project Report.
✅ Application submission and follow-up: Ensuring your application is complete and tracked effectively.
✅ Technical and branding guidance: Offering expert advice for product development and market positioning.
✅ Implementation support for CFC and digital marketing: Assisting with the execution of key interventions.

📞 Call us today: +91-9084729472 📧 Email us: [email protected] 🌐 Visit our website: www.sigmasolutions.in

Conclusion: A Brighter Future for Artisans

The SFURTI Scheme represents a powerful commitment by the Indian government to preserve, promote, and modernise the country’s rich tapestry of traditional industries. By providing crucial financial, infrastructural, and market support, SFURTI empowers countless artisans to elevate their craft, enhance their livelihoods, and contribute significantly to India’s economic and cultural landscape. With strategic planning and dedicated support, traditional industries can truly flourish in the modern era.