Sfurti Scheme

SFURTI Scheme at a Glance

The Ministry of Micro Small and Medium Enterprises (MSME), Government of India launched the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005 to make traditional industries more competitive, market driven and productive by introducing new technologies.

The SFURTI scheme mandates 90% of the scheme’s budget to be allocated to technology, also known as the “hard component”. This resonates with Development Alternatives’ belief in the power of technology to transform people’s lives. The remaining 10% is allocated to the “soft component” - training, market linkage, design and capacity building – and “thematic interventions”. Traditional industries have been broadly categorized as under: Khadi Industries; Village Industries; and Coir Industries.

Objectives of SFURTI Scheme

  • Organise traditional skills into clusters to make them competitive
  • To provide sustained employment for traditional artisans
  • To enhance marketability of products by design interventions & packaging
  • To improve skills & capabilities by training & exposure visits
  • Provision for common facilities ,improved tools & equipment
  • Multi product cluster
  • Cluster governance-participation of stakeholders
  • Shift from supply driven model to market driven model
  • To tap e-commerce platforms as a major marketing channel
Click Here for SFURTI Guidelines MSME's Guidance Note on Development of Proposal and DPR

Project Intervention


Soft Intervention

  • General awareness
  • Motivation and Trust building
  • Skill development & capacity
  • Exposure visits
  • Market promotion initiatives
  • Design and product development
  • Programme on technology up-gradation, etc

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Institutional Arrangements

Given the challenges and wide geographical coverage of the Scheme, an efficient scheme management structure and delivery mechanism has been proposed


IA - Implementing Agencies (IAs) would be Non-Government organizations (NGOs) or any central , state government institutes with suitable expertise to undertake cluster development. Corporates and Corporate Social Responsibility (CSR) foundations are also encouraged to participate with a contribution of at least 50%.

TA - National-level institutions, with proven expertise in artisanal and small enterprise cluster development.

SPV - An SPV can be registered as a Society, a Co-operative Society, a Producer Company, a Section 8 Company or a Trust.

Financial Assistance

The financial assistance provided for any specific project shall be subject to a maximum of Rs.5 (Five) crore.

Type of Clusters Per Cluster Budget Limit
Regular Clusters (upto 500 artisans)* Rs.2.50 crore
Major Clusters (more than 500 artisans) Rs.5.00 crore

* Clusters with lesser number of artisans/workers etc. can also be proposed by NAs but number of artisans/workers etc. should not be less than 100 (50 for NER & Hilly areas) In such cases, proportionate GIA(Grants-in-aid) may be considered by SSC while granting approval.

It shall be the responsibility of the IA to bring in land. The scheme funding shall not be utilized for the procurement of land. The cost of land will not be included in the total cost of Hard Intervention. A contribution of 10/5% in cash has to be provided by the Promoter to the Hard Intervention.

Project Grant Breakup

A Hard Intervention (HI) Grant - 90% ; IA - 10%*
Building & Infrastructure Upto 30% of HI
Plant & Machinery More than 50% of HI
Raw Material Bank Upto 20% of HI
B Soft Intervention (SI) Upto 10% of HI or 25 Lakhs (whichever is less)
C Cost of TA 8% of SFURTI Contribution to HI or Max 30 Lakhs(90%X8%= 7.2% of Total HI)
D Cost of IA/SPV including CDE# 8% of SFURTI Contribution to HI or Max 20 Lakhs(90%X8%= 7.2% of Total HI)

* 95%:5% in case of North Eastern Region (NER), J&K and hilly states. (IA/SPV may deposit their share in a phased manner with minimum 25% in a single installment as per the satisfaction of NA.)

# This includes remuneration of Cluster Development Executive (CDE) and other expenses incidental for a period of 3 years.