Scheme of Fund for Regeneration of Traditional Industries
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
The Government of India initiated the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005-06 to enhance the productivity and competitiveness of traditional industries across the nation. This initiative aims to foster the sustainable development of these sectors, thereby empowering artisans and rural entrepreneurs.
Overview of the SFURTI Scheme
Administered by the Ministry of Micro, Small and Medium Enterprises (MSME), the SFURTI scheme was launched to transform traditional industries into competitive, market-oriented, and profitable entities. By focusing on sustainable employment opportunities for artisans, the scheme envisions a vibrant ecosystem for traditional industries. The Coir Board serves as the Nodal Agency, overseeing the implementation through various implementing agencies designated for each cluster.
This initiative emphasizes several key areas including:
- Development of physical infrastructure
- Upgradation of technology
- Training and skill enhancement
- Product innovation and design interventions
- Improved packaging and marketing strategies
Objectives of the Scheme
The SFURTI scheme is designed with numerous objectives aimed at uplifting traditional industries:
- To organize artisans into collectives, enhancing competitiveness and sustainability.
- To provide consistent employment opportunities for artisans.
- To enhance product marketability through design and packaging improvements.
- To equip artisans with better skills and capabilities through training sessions.
- To foster collective business enterprises among traditional producers.
- To establish common facilities and improved tools for optimal resource utilization.
- To create multi-product clusters with integrated value chains.
- To strengthen governance within clusters for equitable surplus distribution.
- To promote traditional skills and advanced technologies.
- To focus on unserved districts and endangered arts and crafts.
- To support artisans from disadvantaged communities like SCs, STs, and women.
- To identify target customers and develop products that meet market demands.
- To shift from a supply-driven to a market-driven model.
- To leverage E-Commerce for enhanced product visibility.
- To invest in product design, quality improvement, and R&D.
- To establish collectives focused on Industry 4.0 technologies.
- To promote green and sustainable practices in traditional industries.
Project Interventions
The SFURTI scheme encompasses three primary categories of interventions:
1. Soft Interventions
- Awareness and trust-building initiatives
- Skill development and capacity enhancement
- Institutional development
- Market promotion activities
- Design and product development efforts
2. Hard Interventions
- Establishment of Common Facility Centres (CFCs)
- Creation of Raw Material Banks (RMBs)
- Upgradation of production infrastructure
- Setting up training and processing centres
3. Thematic Interventions
- Brand-building and promotional campaigns
- New media marketing strategies
- International market penetration
Eligibility Criteria
Entities that qualify for participation in the SFURTI scheme include:
- Non-Governmental Organizations (NGOs)
- Central and State Government institutions
- Semi-Government institutions
- Panchayati Raj Institutions (PRIs)
- Private sector organizations forming cluster-specific SPVs
- Corporate entities and CSR foundations with relevant expertise
Cluster Selection Criteria
The selection of clusters is based on:
- Geographical concentration of around 500 beneficiary families
- Potential for production growth and employment generation
Financial Assistance
The SFURTI scheme provides financial support as follows:
| Project Intervention | Scheme Funding | Financial Limit | Implementing Agency Share |
|---|---|---|---|
| Soft Interventions | 100% | Maximum ₹25 lakh or 33% of total costs, whichever is lower | Nil |
| Hard Interventions | 75% (Northeastern Region); 75% (Jammu & Kashmir) | Maximum ₹8 crores per project | 25% of project cost |
| Cost of Technical Agency | 100% | 8% of total costs (Soft + Hard) | — |
Application Process
To apply for the SFURTI scheme, follow these steps:
- Step 1: Eligible organizations must visit the SFURTI portal and register by providing accurate details.
- Step 2: Log in with your credentials and complete the application form.
- Step 3: Upload all necessary documents and verify your information.
- Step 4: Submit the application form for review.
Conclusion
The SFURTI initiative represents a significant effort by the Indian government to bolster traditional industries, ensuring their viability and sustainability while empowering artisans and rural communities. Through structured interventions and financial support, this scheme aims to create a robust ecosystem that not only preserves but also enhances the value of traditional crafts and trades across the nation.
Eligibility Criteria
Non-Government organizations (NGOs), institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), Private sector by forming cluster-specific SPVs, Corporates and Corporate Responsibility (CSR) foundations with expertise to undertake cluster development.
Criteria for Selection of Clusters:
The Selection of Clusters will be based on their geographical concentration which would be around 500 beneficiary families of artisans/micro-enterprises, suppliers of raw materials, traders, service providers, etc., located within one or two revenue subdivisions in a District (or in contiguous Districts.)
The potential for growth in production and generation of employment opportunities will also be considered in selecting clusters under SFURTI.
The geographical distribution of the clusters throughout the country, with at least 10% located in the North Eastern region will also be kept in view while selecting Clusters.
Benefits
100% of Project cost excluding/except Hard Interventions.
90% of Hard Intervention is eligible for the North Eastern Region, UT of Jammu & Kashmir and Hill States, and 75% of Hard Intervention for Others.
#Project InterventionScheme FundingFinancial Limit Financial Limit Implementing Agency Share
ACluster Interventions
A1Soft Interventions including skill training, capacity building, and design development 100%Subject to a maximum of 33% of A (Total cost of Cluster Interventions both hard and soft interventions) or ₹25.00 lakh, whichever is less.Maximum ₹8 crores per project (A+B+C)Nil
A2Hard Interventions including CFCs, RMBs, training Centres, etc.*75%Maximum ₹8 crores per project (A+B+C)25% of Project Cost
BCost of Technical Agency 100%8% of A1+A2 (Total cost of Cluster Interventions both hard and soft interventions)Maximum ₹8 crores per project (A+B+C)Nil
C**Cost of IA/SPV including CDE100%Maximum ₹20.00 lakh per project.Maximum ₹8 crores per project (A+B+C)Nil
* 90%:10% in the case of the North Eastern Region (NER), UT of J&K and hill states.
** This may include remuneration of Cluster Development Executive (CDE) and other expenses incidental to the entire 3-year project implementation.
Application Process
Apply OnlineStep 01: Eligible agencies/organizations may submit the proposal online. The applicant/agency/organization needs to visit on SFURTI Portal
and register/sign up on the portal by entering their correct details.
Step 02: For applicant/organization needs to login through their ID on the SFURTI Portal
and fill out the application form completely.
Step 03: Upload all the relevant documents and verify the details.
Step 04: Submit the application form.
Instructions For Filling Concept Scorecard
References & Official Links
Scheme Details
| Full Name | Scheme of Fund for Regeneration of Traditional Industries |
| Short Title | SFURTI |
| Level | Central |
| Scheme For | Infra |
| Ministry | Ministry Of Micro, Small and Medium Enterprises |
| Categories | Banking,Financial Services and Insurance, Business & Entrepreneurship |
| States | All India |
| Gender | All |
| Age Range | 10 — Any years |
| Area | Rural |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar · 📅 28 Apr 2026
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
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