SFURTI Clusters in Kerala: What Bell Metal and Brassware Artisans Actually Get

Conventional industries like Bell Metal, Coir, Bamboo Arts & Crafts, etc., still provide livelihood to numerous people of Kerala. But there are many problems faced by artisans, like old and dilapidated infrastructure, lack of modern technology, design limitations, and market outreach problems. In order to solve these problems, SFURTI (Scheme of Fund for Regeneration of Traditional Industries) was started by the Government of India as a Cluster Development Scheme under the Ministry of MSME.

Through SFURTI, eligible artisan groups and traditional industry clusters get grants to develop Common Facility Centres (CFCs), enhance machinery, redesign products, improve marketing ability, and develop skills. This helps in making traditional industries more productive and profitable.

However, it is necessary to know about what is supported and not supported under this scheme. Although this scheme provides funding for developing infrastructure and clusters, there might be a requirement of funding from artisans themselves for their operation costs like raw materials, stock of inventories, working capital, etc. This guide will help you understand SFURTI scheme, what kind of projects it supports, eligibility criteria, grant limits, and financing available for artisans under the scheme.

What Is the SFURTI Scheme?

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a cluster development programme launched by the Ministry of MSME to strengthen traditional industries and improve the livelihoods of artisans and rural producers. The scheme focuses on sectors such as coir, khadi, bamboo, bell metal, handicrafts, handloom, and other traditional industries by supporting the creation of modern infrastructure, technology upgrades, skill development, and market access.

Unlike individual entrepreneurship schemes, SFURTI operates through clusters. This means that grants are provided to organised groups of artisans, producer groups, cooperatives, self-help groups, societies, trusts, or other eligible cluster-based entities rather than to individual artisans. The objective is to create shared facilities and resources that benefit all members of the cluster.

Under the scheme, eligible clusters can receive support for activities such as establishing Common Facility Centres (CFCs), purchasing shared machinery and equipment, product design and development, packaging improvements, branding, marketing support, training programmes, and capacity building. By creating common infrastructure and strengthening collective capabilities, SFURTI aims to improve productivity, increase market competitiveness, and ensure the long-term sustainability of traditional industries.

Three types of interventions are funded:

The hard interventions are usually what clusters need most urgently. A common facility centre with professional finishing equipment, drying chambers, or quality testing tools can transform what individual artisans can produce and it costs far more than any individual artisan household can fund alone. That's the gap SFURTI fills.

SFURTI Clusters in Kerala: Bell Metal, Brassware, and Beyond

Mannar in Alappuzha district is where you can find Kerala's place for making things out of bell metal and brassware. The people who make these things in Mannar have been doing it for a long time. They make things like lamps for prayer, idols for temples and vessels, for occasions. They use an old method to make these things called lost-wax casting. This way of making things needs a lot of skill. It takes a lot of time. The people who make these things in Mannar are having a time because people are buying cheaper things made out of cast-iron and aluminium instead of the things made out of bell metal and brassware. A SFURTI cluster for Mannar's bell metal artisans with shared finishing equipment, a quality testing facility, and a design upgradation programme, is the kind of institutional support that can shift the product from "local craft" to "premium certified heritage product."

Bell metal and brassware fall under the metalware and traditional crafts category, which is an eligible sector under SFURTI. A cluster of 50 or more Mannar artisans, registered as a society or producer group, can apply for mini cluster funding of up to Rs 25 lakh. If the group is larger (500 or more artisans), the ceiling goes up to Rs 2.5 crore as a regular cluster.

Beyond Mannar, Kerala has active SFURTI clusters in several other sectors:

• Coir clusters in Balusserry, Haripada, and Neyyattinkara

• Handicraft clusters in Thrissur district

• Bamboo craft clusters in Kalpetta, Wayanad

• Honey processing clusters in tribal areas of Idukki and Wayanad

Each of these represents a different craft, a different geography, and a different group of artisans. But the scheme mechanics, the cluster formation process, the nodal agency, the DPR submission, are the same across all of them.

Who Is Eligible for SFURTI Cluster Support?

A quick checklist:

• To start something like this you need least 50 artisans who are willing to work together. They have to form a group that is officially recognized like a Society or a group of people who make things. This group can also be a SHG federation or a Producer Company.
• The thing they make has to be something that people have been making for a time like khadi or coir or bamboo things. It could also be honey or pottery or brassware or bell metal things or handloom products. The craft or industry has to be one of these things, like pottery or handloom or similar things that people have been making for a long time.
• The cluster needs a registered Cluster Level Federation or Society to receive and manage funds.
• An Implementation Agency (IA), like KVIC, KVIA, or an approved NGO, must sponsor and guide the DPR preparation and submission.
• For Kerala-based clusters, the state MSME department can also serve as a nodal body for certain cluster types.

Individual artisans cannot apply. That's really important to understand. The plan is to organize everything into groups. This setup helps all users. The specific program comes from the group that signed up, not from one individual worker.

Funding Support Under SFURTI: What Clusters Actually Receive

Note: All figures are based on current SFURTI MoMSME guidelines and are subject to revision. Verify current grant ceilings with the nodal agency or at sfurti.msme.gov.in before preparing the DPR.

The grants are non-repayable. There's no loan component in the SFURTI grant itself. But clusters must meet milestone-based utilisation criteria, meaning funds are released in tranches as the project progresses, not as a single upfront payment. A common facility centre, for example, might receive 30% on sanction, 40% after the building is completed, and the final 30% after machinery is installed and operational.

This phased release model is practical from the government's side. From the cluster's side, it means having working capital to operate between tranches, because the artisans still need raw material to keep producing even while the CFC is being built.

How to Apply for SFURTI: Step-by-Step

• Form a cluster entity. Identify 50 or more artisans in the same craft and geography willing to participate. Register as a Society, SHG federation, or Producer Company.
• Identify a nodal agency in Kerala. KVIC (Kerala State Office), KVIA (Kerala Village Industries Association), or an approved NGO can serve as the Implementation Agency. Contact KVIC Kerala directly to confirm current empanelment and availability.
• Prepare a Detailed Project Report (DPR). The DPR is prepared with the nodal agency and covers cluster composition, proposed interventions, cost estimates, and expected outcomes. The quality of the DPR is the single biggest factor in approval.
• Submit through the SFURTI portal at sfurti.msme.gov.in. The nodal agency manages this step.
• Project Appraisal Committee review. The Ministry of MSME's committee evaluates the DPR. This process may take approximately 3 to 6 months from complete submission, subject to documentation quality and current processing volumes.
• Grant released in phases. On approval, funds are released in tranches against milestone completion, site readiness, construction, machinery installation, and operationalisation.

Other Funding Options for Kerala Artisans

A Mannar bell metal cluster that's received SFURTI approval and is waiting for the first tranche release still needs to run. Artisans need brass and bell metal raw material. Seasonal temple lamp orders can't wait for the CFC to be commissioned. The design upgradation programme trains artisans, but training doesn't pay for copper the next morning.

SFURTI handles the infrastructure. Day-to-day operational financing is a separate conversation and it's one that SFURTI approval actually makes easier to have with a lender.

Being part of a SFURTI-approved cluster signals something useful to a lender: this artisan group is formally registered, has government endorsement, and is operating within a structured programme. It doesn't guarantee a loan, but it does improve the creditworthiness conversation.

For working capital needs, a business loan can cover raw material procurement, inventory build-up, or order-specific cash flow requirements, subject to applicable eligibility criteria, documentation requirements, and lender assessment. For individual artisans within the cluster who hold gold jewellery, and in Kerala, that's not an uncommon situation, aGold Loan can provide quick loan disbursal with minimal documentation, attractive interest rates, subject to applicable eligibility criteria and lender policies.

The cluster gets the infrastructure. The artisan gets the operational cash flow. That combination is what actually keeps a traditional craft alive.

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