Revamped Scheme of Fund for Regeneration Of Traditional Industries (SFURTI)
The SFURTI scheme is a central-sector initiative by the Ministry of MSME, Government of India. It was initially launched in 2005 and then a “revamped” version was notified on 1 August 2014. Its purpose is to organise traditional industries and artisans into clusters, strengthen their infrastructure, promote value-addition, enhance competitiveness and thereby generate sustainable employment and higher income for rural artisans. Your enterprise can benefit if you are part of or intend to form a cluster of artisans/traditional industry units—by accessing support for infrastructure, technology up-gradation, design, market access, and institutional capacity building.
Key Features
- Cluster-based development of traditional industries: The scheme works by forming artisan-based micro-enterprises or micro-units into clusters where shared facilities, skills and infrastructure can bring scale and competitiveness. These can be mini-clusters, major clusters or heritage clusters depending on size.
- Support for three types of interventions: soft, hard and thematic:
- Soft interventions include awareness, capacity building, training, exposure visits and institution building.
- Hard interventions involve physical infrastructure such as Common Facility Centres , raw material banks, tool-kits, production infrastructure, value-addition centres.
- Thematic interventions support cross-cutting activities like branding, e-commerce integration, design innovation, research & development.
- Financial assistance/grant-in-aid per cluster: Under the revamped guidelines, funding caps per cluster depend on category . For example, heritage clusters may get up to ₹ 8 crore, major up to ₹ 3 crore, mini up to ₹ 1.5 crore .
- Governance & institutional structure: The scheme mandates a layered institutional mechanism. At the top is the Scheme Steering Committee of the Ministry. Nodal Agencies such as Khadi & Village Industries Commission for khadi/village industries and the Coir Board for coir clusters are nominated. Technical Agencies provide hand-holding and Implementing Agencies execute the project via a Special Purpose Vehicle representing the cluster units.
- Focus on market-driven product development, design, packaging, technology and sustainability: The scheme emphasises that clusters must shift from supply-driven to market-driven models, identify target buyers, develop product lines accordingly, leverage e-commerce, branding & design improvements, and ensure long‐term sustainability beyond grant-period.
Financial Assistance
Eligibility Criteria
Who can apply:
- NGOs, institutions of Central/State Governments, semi-Government institutions, Panchayati Raj Institutions , field functionaries of State/Central Government, private sector entities by forming cluster-specific SPVs, CSR foundations etc.
- The cluster should be in a traditional industry area: artisan communities, handicrafts, khadi, village industries, coir, etc. The cluster proposal must meet the scheme’s criteria for cluster size, number of artisans, interventions planned.
Who cannot apply:
- Proposals not for cluster-based interventions may not be eligible under the scheme.
- Entities without forming an SPV or without required governance or cluster plan may be disqualified.
- Projects that do not align with scheme guidelines may be rejected or not sanctioned.
- Applicants not meeting the financial criteria or co-contribution or required pattern of funding as per guidelines may be ineligible.
Documents Required
- Proposal/Project Report for the cluster .
- SPV registration or consent for formation of SPV by cluster members.
- Details of artisans in cluster: list, demographic, activity, current production, income.
- Audited accounts or financial statements of applicant entity .
- Thematic/intervention plan: technology upgradation, design, marketing, capacity building.
- Infrastructure plan: site details, land/lease documents, building drawings , cost estimates for machinery/equipment.
- Memorandum of Understanding among stakeholders/cluster members & SPV.
- Bank account details for grant disbursement.
- Any other approvals/clearances as required by state or scheme guidelines.
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: NGOs, cluster organisations, artisan groups with limited internal capacity.
Option 2: Government Process via MoMSME / Nodal Agencies
- Prepare detailed cluster proposal: baseline survey of artisans, technology gaps, product mix, market potential, common facility centre plan, governance model .
- Submit the proposal to the designated Nodal Agency/Nodal Ministry as per the scheme’s application window and guidelines.
- On approval, funds are sanctioned and released in stages according to soft/hard/thematic interventions. Implementation starts: physical infrastructure set up, skill upgradation, market linkages etc.
- Post-implementation: Submit utilisation certificates, periodic progress reports, monitoring & evaluation; cluster SPV ensures sustainability of operations.
Option 3: Via State/UT or other implementing partner
Many state governments, industry associations or cluster development organisations act as implementing partners under SFURTI. Applicants may approach the state nodal office or relevant SPV for application facilitation.