SFURTI Scheme: Full Form, MSME, Subsidy, Who Will Apply?

SFURTI scheme is an initiative started to promote the development of clusters in India. Read to know more details regarding the scheme here!

22 Nov,2022 17:40 IST 4 views
SFURTI Scheme: Full Form, MSME, Subsidy, Who Will Apply?

The Indian government's Ministry of MSME launched the SFURTI scheme to promote cluster development in the country. Since 2005, the scheme has been prevalent and active.

Local working classes and traditional businesses in India are the scheme’s focus. In addition to providing immense economic benefits, the scheme also provides the support necessary to enhance their lives significantly.

What Is The SFURTI Scheme?

SFURTI stands for Scheme of Fund for Regeneration of Traditional Industries. In its effort to promote cluster development under the supervision of the Ministry of MSME, SFURTI was born. The programme’s primary objective is to increase the competitiveness and profitability of traditional industries throughout the country.

Industrial sectors with many employees must become more productive and economically viable. Therefore, the proposed SFURTI Yojana established Common Facility Centres, generating sustainable employment opportunities.

A principal objective of the SFURTI MSME scheme is to support rural artisans and entrepreneurs in the bamboo, khadi, and honey sectors.

Funding Under SFURTI

For any project, the SFURTI scheme provides maximum assistance of Rs 8 crores.

Type of Clusters Per Cluster Budget Limit
Mini Clusters (Up to 500 artisans) Rs. 1 crore
Major Clusters (500 – 1000 artisans) Rs. 3 crores
Heritage Clusters (1000 – 2500 artisans) Rs. 8 crores

Note: The number of artisans per cluster reduces by 50% in the North Eastern Region / J&K and Hill States.

Objectives of the SFURTI Scheme

• Organise traditional and artisans industries into clusters to increase competitiveness
• Increase the marketability of these clusters' products and increase employment opportunities
• The improvement of artisans' skills
• Improve the tools and equipment available to artisans
• Strengthening cluster governance with active stakeholder participation
• Promoting the value of local cluster products and enhancing their advertising value. The new products of workers and artisans are assisted financially through the design process, packaging improvement, and marketing strategy development.

SFURTI will develop approximately 70 clusters that will require an investment of Rs. 149.44 crores. Furthermore, it is stated in the 12th Five-Year Plan that the administration will develop about 800 clusters with funding from the Government of India and the Asian Development Bank. For each cluster, the Government of India allocates three years to implement the project.

Entities Eligible Under The SFURTI Program

• Field functionaries of State and Central Governments
• Institutions of the Central and State Governments, as well as semi-government institutions
• Corporates and Corporate Responsibility (CSR) Foundations
• Private sector by forming cluster-specific SPVs
• Non-Government Organisations (NGOs)
• Panchayati Raj Institutions (PRIs)

Benefits Of SFURTI Scheme

Beneficiaries of the SFURTI scheme should be aware of several benefits of the program.

1. The scheme aims to improve the skills and manufacturing capabilities of the artisans of rural India in various associated clusters to improve their employment prospects and economic success. A series of exposure visits and special training will help accomplish this goal.

2. The SFURTI scheme enables actual provisions for facilities and centers. As a result, artisans and workers can improve the quality of their products and services by using improved equipment and tools. Indirectly, the scheme maximises an artisan's utilisation of various facilities.

3. Cluster stakeholders participate actively in the cluster governance system. In turn, these stakeholders seek market opportunities within these clusters, which leads to the economic growth of these organisations.

4. Cluster-based industries are created in subdivisional regions of districts under the scheme. Through this method, rural artisans and workers acquire practical and innovative skills that enable them to develop new business plans, upgrade technology, upgrade processes, and develop a sense of market intelligence to create new marketing partnerships.

5. By creating its integrated value chain, the scheme contributes to developing an economically sustainable ecosystem. The scheme also creates products and services tailored to the market to ensure the long-term sustainability of cluster-based industries.

6. The scheme facilitates the creation and marketing of products that meet the actual needs of current consumers. By organising their otherwise disparate product lines into a cumulative product line, the cluster can create products with maximum value by utilising the total artisan force.

7. Local artisans are encouraged to pitch their business and products to a wider market using E-commerce as a business growth and marketing channel. The scheme develops a meticulous strategy specifically for promoting the products and services of the local artisans in the online marketplace of E-commerce.

SFURTI Scheme Application Process

You must submit a proposal to your region’s State Office and KVIC to receive a loan under the SFURTI scheme. State-level and zonal-level offices then review and verify the proposal and request for integrity.

The document is eventually sent to the Scheme Steering Committee for final approval if the document’s authenticity is verified. They grant loans to users after approval.

Apply For A Business Loan With IIFL Finance

If you are not eligible for the SFURTI Scheme, you can still fulfil your business capital needs with a loan from IIFL Finance. The interest rate on loans is attractive and affordable, so repayment does not pose any financial burden. We disburse loans within 2-3 business days so that you can access funds quickly!

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FAQs

Q1. What is SFURTI?
Ans. To promote cluster development that will further enable traditional industries to be more productive and profitable, the Ministry of MSMEs (MoMSME) and the Government of India launched the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005.

Q2. Under Revamped SFURTI, what types of financial assistance are available?
Ans. Three types of clusters allocated financial assistance for Revamped SFURTI, each with a budget limit.
• Heritage (150 to 500 artisans) - Rs. 1.50 crore
• Major (500 to 1000 artisans) - Rs. 3 crores
• Heritage (1000 to 2500 artisans) - Rs. 8 crores

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