Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) - An Introduction

‘Scheme of Fund for Regeneration of Traditional Industries’ (SFURTI) is a scheme launched by the Government of India under the aegis of Ministry of MSME in 2005 with the intention to promote cluster development. The main objective of the programme is to make traditional industries that spread across the country to become more competitive and profitable.

The traditional industries that employ a large chunk of workers should become more productive and economically sustainable. With SFURTI scheme in place, Common Facility Centers (CFCs) were to be established; and the idea was to generate sustainable employment opportunities. Broadly, ‘traditional industry’ means an activity which produces marketable products, using locally available raw material and skills and indigenous technology. Traditional Industry Cluster, in this context, refers to a geographical concentration of a sizable number of artisans or micro enterprises, suppliers of raw materials, traders, service providers, etc. producing processing and servicing the same or similar types of products and facing common opportunities and threats.

The traditional industries are broadly categorized into Khadi (comprising of hand-spun and hand-woven cotton, woolen, muslin and silk varieties), Coir Based Industries and Village Industries (including non-timber forest produces-NTFPs, handmade paper, agro based goods, textiles based products and other miscellaneous microenterprises)

With a view to make the traditional industries more productive and competitive and facilitating their sustainable development, the Central Government of India announced setting up of a fund for regeneration of traditional industries, with an initial allocation of ₹ 100 crore. Pursuant to this announcement, a Central Sector Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” was approved at a total cost of ₹ 97.25 crore. The Scheme was implemented by the Ministry of Micro, Small and Medium Enterprises (MSME) and its organizations (Khadi and Village Industries Commission-KVIC and Coir Board), in collaboration with State Governments, their organizations and non-governmental organizations.

The following schemes are being merged into SFURTI:

  • The Scheme for Enhancing Productivity and Competitiveness of Khadi Industry and Artisans,
  • The Scheme for Product Development, Design Intervention and Packaging (PRODIP),
  • The Scheme for Rural Industries Service Center (RISC) and
  • Other small interventions like Ready Wrap Units, Ready to Wear Mission, etc. run by KVIC (Khadi and Village Industries Commission) during XI Plan from Khadi Grants and VI Grants

The sectors in focus for the SFURTI scheme are bamboo, khadi, and honey with the sole aim to support rural artisans and rural entrepreneurs. It is promoting the production of Khadi industry. RISC (Rural Industries Service Center) is being implemented under this scheme.