SFURTI Scheme

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was introduced in 2005 by the Indian government under the Ministry of MSME to promote cluster growth. The program’s major goal is to make traditional industries, which are found throughout the country, more competitive and lucrative. Traditional industries, which employ a significant number of people, should become more productive and economically viable. Common Facility Centres were to be constructed as part of the SFURTI program, to create long-term employment opportunities.

The SFURTI initiative focuses on bamboo, khadi, and honey with the primary purpose of supporting rural artisans and entrepreneurs. The Working Group on the XII Plan of the Planning Commission has recommended that SFURTI be continued with its existing components, such as equipment replacement, common facilities establishment, support for the development of new products, designs, packaging, and market promotion, capacity building activities, and so on. 

SFURTI Schemes

• To group various traditional industries and local craftspeople. The goal is to achieve economies of scale while also becoming more competitive and promoting industries for sustainability in the long term
• To create long-term employment for local craftspeople working in traditional industries, as well as to promote entrepreneurs in a rural setting
• To highlight the marketing of cluster products by focusing on the development of new items, design intervention, including better packaging, by establishing an improved infrastructure in marketing 
• To supply artisans with skill-development training and to improve their skills by helping them receive first-hand experience
• To provide better quality tools and other equipment to the artisans involved, as well as to provide shared facilities
• To improve cluster governance by enlisting the active engagement of many stakeholders. This will allow them to identify looming difficulties and emerging opportunities and, as a result, take necessary steps in a coordinated manner
• Focus on new technology, enhanced processes, relevant data (also known as market intelligence), as well as creating new public-private partnership models that can be duplicated gradually on comparable cluster models based on existing sectors 
• To explore ways to create a multi-product cluster with a fully integrated value chain and to apply a market-driven approach to the project’s financial feasibility and the cluster’s long-term sustainability
• To discover potential cluster product consumers and learn about their goals so that a production line may be set up to meet their needs
• Based on a thorough understanding of the target consumer category, design specialised product lines from the currently available diversified basket of heterogeneous products. A brand unification exercise is also required for the beneficiary
• Making a paradigm transition from a supply-driven to a market-driven selling model with the right branding, product mix, correct positioning, and pricing to make the offering comprehensive and ideal for each of the focus categories 
• Given the extent and expanding market penetration of e-commerce, a swift approach to make its presence felt in the e-retail arena is required to access e-commerce as a major marketing channel

Interventions in the Scheme

There are three main types of interventions in the SFURTI scheme:

• Soft Interventions: This includes raising a general understanding of the scheme, counselling, developing trust, and motivating people to participate. It also assists artisans with skill development, capacity growth, and the establishment of institutions. Visits by craftspeople, product design, and development are among the other steps taken
• Hard Interventions: This includes the formation of clusters for a variety of items and packaging. Raw material banks, technology upgrades, common facility centres, training centres, and warehouse facilities are among the other efforts
• Thematic Interventions: These are interventions that focus on domestic and foreign markets and include numerous clusters within a single industry. These are aided by marketing campaigns, brand promotion, and collaboration with e-commerce sites to reach new markets and customers

Application and Scheme Criteria

Proposals should be submitted to the appropriate state office of Khadi and Village Industries Commission (KVIC) by eligible entities. Officials from the State and Zonal levels review the proposals before forwarding them to the Steering Committee for approval. 

• The clusters should be near a concentration of roughly 500 benefit families, who comprise craftsmen, traders, service providers, and raw material suppliers, among other things. Furthermore, these clusters should be developed within one or two district subdivisions
• Clusters based on khadi, coir, and rural industries such as pottery, leather, and so on should be formed
• Other elements examined by the SFURTI scheme include growth potential, sustainability, and the ability to produce jobs
• The geographical distribution of clusters across the country is another factor for cluster formation. At least 10% of the clusters must be situated in India’s north-eastern states

The SFURTI project proposal includes building 70 clusters under the SFURTI scheme, with a budget commitment of Rs. 149.44 crores. Under the 12th five-year plan, cash sanctioned by the Central Government and funding from the Asian Development Bank would be used to build 800 clusters. For each cluster, the government set a three-year deadline for implementing the system. Between 2018 and 2020, 154 clusters were granted under the SFURTI system, compared to the government’s initial objective of 100. The government has designated nodal agencies and provided cash for the scheme’s implementation. The goal is to bring in a revolution and make rural-based enterprises formidable. 

Conclusion

The SFURTI scheme is a Government of India scheme created in 2005 to establish clusters of rural-based enterprises in various sections of the country. The goal is to revamp rural industries and provide financial assistance to help them become more competitive, financially viable, and lucrative. The following schemes are being combined into SFURTI under the new guidelines:

• The Scheme for Increasing Khadi Industry and Artisan Productivity and Competitiveness
• Design Intervention, Product Development, and Packaging Scheme (PRODIP)
• The Rural Industries Service Centre (RISC) scheme, as well as other modest interventions such as Ready Warp Units, the Ready to Wear Mission, and more.