SFURTI Scheme 2026 Andhra Pradesh: A Guide to Grants for Artisans

14 May, 2026 11:44 IST 1 View
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The SFURTI scheme 2026 Andhra Pradesh provides central government grant-based support to traditional artisan clusters for shared infrastructure, training, and market development. Eligible industries include Khadi, Kalamkari, Kondapalli toys, and coir.

Applications are submitted through an Implementing Agency via the official SFURTI portal, with additional state-level facilitation available through Andhra Pradesh MSME channels.

SFURTI Scheme 2026 Andhra Pradesh: An Overview of Artisan Grants

SFURTI 2026 gives Andhra Pradesh's traditional artisan clusters subsidies from the central government grant ceilings vary based on cluster category as per scheme guidelines for market expansion, common infrastructure, and training. Coir, Kondapalli toys, Khadi, and Kalamkari are among the qualifying industries.

What Does Andhra Pradesh Need to Know About the SFURTI Scheme?

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a cluster-based initiative by the Ministry of MSME aimed at improving the competitiveness of traditional industries. It facilitates access to shared infrastructure, training, and market linkages through cluster formation.

In Andhra Pradesh, where several traditional industries hold Geographical Indication (GI) status, the scheme enables structured access to processing facilities and market channels through Common Facility Centres (CFCs).

By providing funds for Common Facility Centres where craftsmen can utilise contemporary machinery and securely store their wares, the SFURTI cluster development grant in Andhra Pradesh helps close this gap.

Which Andhra Pradesh Traditional Industries Qualify for SFURTI?

The scheme covers a broad range of traditional sectors including Khadi, village industries (coir, honey, ceramics), and forest-based crafts. Examples from Andhra Pradesh include Kondapalli toys, Kalamkari textiles, and metalwork clusters.

Cluster eligibility depends on artisan count and geographical concentration as per scheme norms.

The SFURTI cluster development grant in Andhra Pradesh prioritises the following

Cluster Type

Typical Scale

Grant Ceiling (Indicative)

Mini Cluster

Smaller artisan groups

As per scheme guidelines

Regular Cluster

Medium clusters

As per scheme guidelines

Major Cluster

Large clusters

As per scheme guidelines

If you are part of such a group, looking into a traditional artisan business loan in Andhra Pradesh can also help individual needs while the cluster grows.

SFURTI Grant Amounts and What the Funding Covers

The SFURTI project funding guidelines for Andhra Pradesh specify different levels of financial support based on the size of the artisan group. This money is a grant, not a loan, but it must be used for the benefit of the whole group.

Cluster Funding Table

Cluster Type

Artisan Count

Maximum Grant Ceiling

Mini Cluster

100+ Artisans

Up to Rs 2.5 Crore

Regular Cluster

500+ Artisans

Up to Rs 8 Crore

Major Cluster

1,000+ Artisans

Up to Rs 10 Crore

How the money is used:

  1. Soft Interventions (Up to 30%): This covers people's costs like skill training, design workshops, and visiting trade fairs.

  2. Hard Interventions (Up to 70%): This is for physical assets like building a Common Facility Centre (CFC), buying heavy machinery, or setting up packaging units.

  3. Thematic Interventions: Focused on new technology and brand building across multiple clusters.

It is important to note that the SFURTI cluster development grant in Andhra Pradesh does not provide cash to individual artisans for their daily expenses or raw materials. For those individual needs, an IIFL business loan for artisans is a more suitable option.

How to Apply for Andhra Pradesh SFURTI Funding: A Comprehensive Guide

A successful proposal requires adherence to the SFURTI project funding guidelines of Andhra Pradesh. The detailed procedure is as follows:

  1. Find or establish an artisan cluster with at least 100 or 500 members.

  2. Collaborate with an Implementing Agency (IA), which may be a semi-government organisation, a government agency, or a recognised non-governmental organisation.

  3. The proposed cluster must be registered by the IA on the SFURTI website (sfurti.msme.gov.in).

  4. The IA creates a Detailed Project Report (DPR) outlining how the funds will be used and how they support craftsmen.

  5. The District Industries Centre (DIC) in Andhra Pradesh reviews the plan and sends it to the MSME-DI in Hyderabad.

  6. The Ministry’s technical committee evaluates the DPR for final approval.

  7. A formal sanction letter is sent to the group after approval.

  8. Depending on the accomplishment of particular project milestones, the grant is released in phases, or tranches.

AP Nodal Contact: To learn how to apply for the SFURTI scheme 2026 in Andhra Pradesh, visit your local District Industries Centre or go to apmsmeone.ap.gov.in.

Integrating Andhra Pradesh State Schemes with SFURTI

The SFURTI cluster development grant in Andhra Pradesh may be aligned with eligible state-level schemes, subject to scheme rules and non-duplication of benefits.

  • YSR Cheyutha Support: The state provides direct financial assistance to women artisans from BC, SC, ST, and minority communities. These women can take advantage of the SFURTI cluster's equipment while using their Cheyutha cash for personal expenses.

  • MSME Park Integration: MSME parks are run by the AP Industrial Infrastructure Corporation (APIIC). In order to obtain subsidised land and improved access to electricity, an SFURTI cluster may establish its Common Facility Centre within these parks.

  • AP MSME One Portal: This system has just one window. Because duplicate funding is prohibited, artisans should utilize this portal to make sure they are not applying for the same machine or building under two different schemes.

Using a traditional artisan business loan in Andhra Pradesh alongside these grants can help cover the gaps that government schemes might leave behind.

When a Grant Is Not Enough: Financing Before and After SFURTI

While the SFURTI scheme 2026 Andhra Pradesh supports cluster-level infrastructure, it does not typically cover individual working capital requirements or interim funding needs during the approval period.

In such cases, external financing options such as a traditional artisan business loan in Andhra Pradesh or a business loan may be considered and evaluated, subject to eligibility, documentation, and lender-specific terms.

If you have gold assets, a gold loan for quick working capital is also a reliable choice for artisans who need cash immediately without long waiting periods. These loans act as a bridge until the cluster grant is fully operational.

Frequently Asked Questions

Q1.
In Andhra Pradesh, who is eligible to apply for SFURTI funding?
Ans.

The artisan cluster submits an application through an Implementing Agency (IA), which might be a government agency, non-governmental organisation, or trade association. Direct applications are not accepted from individual craftsmen. For a small cluster, there must be at least 100 craftsmen; for a large cluster, there must be 500. The IA has to have a track record of supporting craftspeople.

Q2.
What is the highest grant that an Andhra Pradesh cluster may receive under SFURTI?
Ans.

Up to Rs 10 crore can be earned by a large cluster with more than 1,000 workers. A micro cluster can earn up to Rs 2.5 crore, while a standard cluster can receive up to Rs 8 crore. These monies will be used for training and shared amenities. The SFURTI scheme 2026 Andhra Pradesh grant does not cover individual wages or raw materials.

Q3.
How long does SFURTI DPR approval take?
Ans.

It typically takes six to twelve months from the moment the Detailed Project Report is filed until it is finally approved. This depends on how clear the proposal is and the current queue at the Ministry. Artisans should consider a traditional artisan business loan in Andhra Pradesh to manage their business during this waiting time.

Q4.
Can an SFURTI cluster in AP also receive YSR Cheyutha benefits?
Ans.

Yes. Individual women within the cluster who meet the state criteria can receive YSR Cheyutha payments. The SFURTI grant helps the group build a factory or buy big machines, while YSR Cheyutha helps the individual woman. Just ensure you do not claim money from both for the same item.

Q5.
Where can Andhra Pradesh artisans get state-level SFURTI guidance?
Ans.

The best place is the AP MSME One portal at apmsmeone.ap.gov.in. It serves as the main help desk for all schemes. You can also visit your District Industries Centre (DIC) for help with the SFURTI project funding guidelines in Andhra Pradesh, or to find an NGO to partner with.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more

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SFURTI Scheme 2026 Andhra Pradesh: A Guide to Grants for Artisans