8 Oct 2019


Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI)

Source: Kurukshetra Magazine, Ministry of Micro, Small & Medium Enterprises

Key features

  • Ministry of Micro Small and Medium Enterprises (MSME), Govt. of India has launched this scheme in the year 2005 with a view to promote Cluster development.
  • As per the revised guidelines, 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 Warp Units, Ready to Wear Mission, etc.


  • To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale
  • To provide sustained employment for traditional industry artisans and rural entrepreneurs
  • To enhance the marketability of products of such clusters by providing support for new products, design intervention, and improved packaging and also the improvement of marketing infrastructure
  • To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits
  • To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities
  • To strengthen the cluster governance systems with the active participation of the stakeholders
  • To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships
  • To look for setting up of multi-product cluster with an integrated value chain and a strong market-driven approach for viability and long term sustainability of the cluster
  • To ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
  • To tap the E-Commerce as a major marketing channel given the outreach and the growing market penetration of E-Commerce
  • To make a substantial investment in the area of product design and quality improvement. 

Who can apply?

  • 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 the expertise to undertake cluster development

Nodal Agencies

The following agencies shall be designated as the Nodal Agencies for the Scheme:

  • Khadi and Village Industries Commission – for Khadi and Village Industry clusters
  • Coir Board – Coir based clusters