SFURTI Scheme: Full Form, Guidlines, Funding Detail, Who Can Apply?

Introduction

SFURTI – full form: Scheme of Fund for Regeneration of Traditional Industries – is a transformative initiative launched by the government of India to rejuvenate and uplift traditional industries in the country’s rural areas. It aims to empower artisans and entrepreneurs, preserve cultural heritage, and drive sustainable economic growth.

In this comprehensive article, we will dig deeper into the various aspects of the scheme, including its wide-ranging benefits, eligibility criteria, necessary documentation, steps to apply, notable features, and objectives. By understanding the essence of this remarkable scheme, we can unravel its potential to bring positive change in rural India.

Overview of the SFURTI Scheme

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) initiative, established by the Ministry of Micro, Small, and Medium Enterprises, is a transformative programme that seeks to breathe new life into traditional industries in rural India. By emphasising the development of industry clusters, the scheme aims to enhance competitiveness, market orientation, and sustainability in such industries.

At its core, the initiative recognises the immense potential hidden within rural artisans and entrepreneurs who possess rich traditional knowledge and skills. It aims to leverage these assets to preserve India’s diverse cultural heritage while simultaneously fostering economic growth.

By supporting the establishment and growth of industry clusters, SFURTI aims to create an ecosystem where traditional industries can flourish. The cluster-based approach acts as a catalyst for change, promoting collaboration, shared resources, and collective growth among artisans and entrepreneurs.

SFURTI’s primary objectives are twofold:

• To generate employment opportunities in rural areas
• To elevate the economic status of the rural population.

By empowering artisans and entrepreneurs, the scheme envisions a future where rural communities can thrive through sustainable livelihoods and improved economic conditions.

Through this scheme, traditional industries can access financial assistance, infrastructure development, and skill enhancement programmes. This support enables artisans and entrepreneurs to adopt modern techniques, upgrade their products, and explore new markets. By aligning traditional skills with contemporary demands, it seeks to make traditional industries more relevant and profitable.

One of the fundamental aspects of the SFURTI scheme is its emphasis on preserving cultural heritage. It recognises that traditional industries are repositories of ancient knowledge, unique craftsmanship, and artistic traditions passed down through generations. By promoting the growth of traditional industries, the scheme aims to safeguard these invaluable cultural assets for future generations.

Furthermore, it recognises that the growth of traditional industries is intricately linked to the sustainable development of rural communities. As such, it aims to improve the quality of life for artisans and entrepreneurs by addressing various aspects such as infrastructure development, access to finance, marketing support, and capacity building.

By nurturing traditional industries and providing them with a conducive environment to thrive, the SFURTI scheme seeks to bridge the gap between rural and urban economies. It envisions a future where India’s rural artisans and entrepreneurs can participate actively in domestic and international markets, gaining recognition for their exceptional craftsmanship and contributing to the overall economic growth of the nation.

Key Features of the SFURTI Scheme

By leveraging the following features, the SFURTI scheme aims to create an enabling environment for traditional industries to thrive, empowering artisans and entrepreneurs, fostering market integration, and ensuring sustainable growth and development in rural areas. Take a look:

1. Cluster Development Approach

The SFURTI scheme adopts a cluster-based approach to foster the development of traditional industries. Clusters bring together artisans, entrepreneurs, and supporting institutions within a geographical area, enabling them to collaborate, share resources, and collectively address common challenges. This approach promotes synergy, enhances competitiveness, and fosters sustainable growth within traditional industries.

2. Financial Assistance

The scheme offers financial assistance to support various aspects of cluster development. This includes funding for infrastructure development, such as the creation of common facilities, workspaces, and raw material banks. It also provides financial support for capacity-building programmes, technology upgradation, skill enhancement initiatives, and marketing activities. The financial assistance offered aims to empower artisans and entrepreneurs by addressing critical gaps and enabling them to scale up their operations.

3. Market Linkages

Recognising the importance of market access, the SFURTI scheme focuses on establishing robust linkages between traditional industries and markets. It facilitates collaborations with market aggregators, e-commerce platforms, exporters, and other market intermediaries. These partnerships help traditional artisans and entrepreneurs expand their customer base, reach new markets, and enhance the visibility and demand for their products. By strengthening market linkages, SFURTI enables artisans to secure better prices and sustainable market opportunities.

4. Holistic Development

The scheme promotes holistic development within traditional industries as it goes beyond financial support and encourages artisans and entrepreneurs to adopt sustainable practices, diversify their product range, and innovate in design and production techniques. It also emphasises the importance of skill enhancement and capacity-building programmes to empower artisans with modern knowledge, tools, and techniques. By fostering holistic development, it ensures the long-term viability and growth of traditional industries.

5. Stakeholder Engagement

The SFURTI scheme recognises the significance of active stakeholder engagement for its success. It encourages the participation of artisans, entrepreneurs, local communities, and relevant stakeholders in decision-making processes, planning, and implementation. This inclusive approach ensures that development initiatives align with the needs and aspirations of the local communities. It also promotes ownership and sustainability by involving stakeholders in the governance and management of the clusters.

Benefits of the SFURTI Scheme

SFURTI provides various benefits for rural communities, such as the following:

1. Enhanced Entrepreneurship

The scheme acts as an accelerator for entrepreneurial development in rural areas. By providing financial assistance, infrastructure development, and skill upgrading opportunities, it empowers individuals to establish and expand their traditional businesses. This fosters a spirit of entrepreneurship and self-reliance within rural communities, leading to increased job creation and income generation.

2. Economic Empowerment

The SFURTI scheme plays a pivotal role in driving economic empowerment in rural India. By supporting traditional industries, the scheme helps in the revitalisation of local economies. It provides avenues for income generation and employment opportunities for artisans, weavers, and other skilled individuals. The resulting economic stability and prosperity have a ripple effect on the overall development of the community, improving living standards and reducing poverty.

3. Market Access

The SFURTI scheme recognises the importance of market access for traditional industries. It facilitates market linkages, marketing support, and product branding, enabling artisans and entrepreneurs to reach domestic and international markets.

This exposure opens up new avenues for sales, expands customer bases, and enhances the visibility and demand for traditional products. By bridging the gap between artisans and consumers, the scheme contributes to increased sales, improved profitability, and sustainable growth for traditional industries.

4. Technological Improvements

To keep pace with evolving market demands, SFURTI focuses on technological upgrades and innovations. It facilitates the adoption of modern technologies, machinery, and practices within traditional industries.

By promoting the integration of advanced techniques such as improved production methods, quality control measures, and product diversification, the scheme enhances the competitiveness and efficiency of rural enterprises. This technological transformation enables artisans and entrepreneurs to meet international quality standards, expand their product ranges, and tap into new market segments.

5. Capacity Building

The SFURTI scheme recognises the importance of capacity building in empowering artisans and entrepreneurs. It offers comprehensive training programmes, workshops, and skill development initiatives, which help equip individuals with modern techniques, design innovations, and business management skills.

Through capacity building, artisans gain access to a broader skill set, enabling them to adapt to changing market trends, improve product quality, develop new designs, and effectively manage their businesses. Such knowledge helps enhance their competitiveness, boost confidence, and contribute to sustainable growth.

Documentation Required According to SFURTI Guidelines

To participate in the SFURTI scheme, applicants need to submit specific documents that establish their identity, address, business registration (if applicable), and project proposal. These documents are crucial for the evaluation and selection process. Here are the details:

• Proof of Identity

Applicants need to provide documents that validate their identity, such as an Aadhaar card, voter ID, or any other government-issued identification. These documents should display the applicant’s name, photograph, and unique identification number.

• Proof of Address

According to SFURTI guidelines, applicants must submit documents that serve as proof of their residential address in the rural area or cluster. Acceptable documents may include electricity bills, lease agreements, property ownership documents, or any other official document that clearly states the applicant’s name and address.

• Business Registration Documents

If the applicant is a registered entity such as a partnership or company, they need to provide relevant business registration documents. These may include partnership deeds, company registration certificates, tax registration certificates, or any other legally required documents that establish the entity’s existence and legitimacy.

• Bank Account Details

Applicants need to provide their bank account details for financial transactions and disbursement of funds under the SFURTI scheme. This includes the name of the bank and branch, account number, and other necessary information to facilitate smooth monetary transactions.

• Project Proposal with Relevant Details

A comprehensive project proposal is a vital component of the SFURTI guidelines. The proposal should outline the scope and objectives of the proposed scheme, including the traditional industry or handicraft that needs development. It should provide detailed information on the infrastructure requirements, market analysis, economic viability, and implementation plan. The proposal should demonstrate the applicant’s understanding of the SFURTI scheme and how they plan to effectively utilise the funds and resources provided.

By submitting the documents mentioned above, applicants can showcase their eligibility, commitment, and preparedness to participate in this scheme. This documentation ensures a transparent evaluation process and helps the authorities assess the feasibility and potential impact of the proposed projects.

Eligibility Process of the SFURTI Scheme

The eligibility process of the SFURTI scheme involves one crucial aspect – selecting clusters based on their concentration within or near a revenue sub-divisional area in the district. These clusters should consist of around 500 beneficiary families or individuals engaged in various roles such as artisans, entrepreneurs, raw material suppliers, and local service providers.

The selection process focuses on clusters representing diverse industries such as khadi, coir, village, leather, and pottery. The scheme closely monitors the progress of these clusters, ensuring growth in production and the generation of employment opportunities.

To ensure fair regional representation, clusters from the Northeastern regions, including states such as Assam, Sikkim, and Nagaland, can comprise a minimum of 10% of the total considerations when selecting suitable clusters.

Potential Applicants for the SFURTI Scheme

The Scheme of Fund for Regeneration of Traditional Industries initiative welcomes applicants working in traditional industries who are looking for support to enhance their livelihoods and promote the development of their respective sectors. Here are some potential applicants who can benefit from this scheme:

• Artisans: Individual artisans engaged in traditional crafts such as handloom weaving, pottery, woodwork, metalwork, embroidery, and other handicrafts.
• Cluster-Based Enterprises: Clusters or groups of artisans or craftsmen working together in a particular geographical area and focusing on traditional industries.
• Self-Help Groups (SHGs): Groups consisting of women artisans or entrepreneurs involved in traditional crafts or industries.
• Artisan Cooperatives: Cooperatives formed by artisans or craftsmen to collectively undertake production, marketing, and other activities related to traditional industries.
• Micro and Small Enterprises (MSEs): Companies involved in traditional industries such as khadi, coir, sericulture, village industries, and such.
• Raw Material Suppliers: Individuals or groups engaged in the supply of raw materials required by traditional industries, such as cotton suppliers for handloom weaving and pottery clay providers.
• Service Providers: Local service providers including designers, consultants, trainers, and marketing professionals who support and facilitate the development of traditional industries.
• Entrepreneurs: Individuals with innovative ideas and entrepreneurial skills aiming to establish or expand enterprises in traditional sectors.

It is important to note that the SFURTI scheme primarily focuses on rural areas and non-farm activities.

Steps to Participate in the SFURTI Scheme

To enjoy the benefits of the SFURTI Scheme and contribute to the growth and development of traditional industries and handicrafts in rural areas, individuals and organisations can follow these steps:

1. Research

Start by conducting thorough research on the scheme. Understand its objectives, guidelines, features and the specific benefits it offers. Familiarise yourself with the requirements and expectations that applicants need to fulfil. This step will provide you with a solid foundation and help you align your project with the scheme’s objectives.

2. Prepare a Project Proposal

Prepare a detailed project proposal that highlights the potential of your traditional industry or handicraft. Include a comprehensive analysis of the market, identify infrastructure needs, and showcase the economic viability of your project. Emphasise how your proposal aligns with the objectives of the SFURTI scheme. Make sure to outline the expected outcomes, target beneficiaries, and the overall impact of your project.

3. Complete the Application

Gather all the required documents as specified by the SFURTI guidelines. This typically includes proof of identity, proof of address, business registration documents (if applicable), bank account details, and your project proposal. Ensure that all the necessary documents are complete, accurate, and well-organised. Pay attention to any additional requirements outlined in the scheme’s guidelines.

4. Get Approval

Submit your application along with the required documentation to the designated authorities responsible for evaluating the proposals. The authorities will assess your project proposal based on predefined criteria such as feasibility, adherence to guidelines, and potential impact. If your proposal meets the criteria and is eligible, you will receive approval.

By following these steps, you can navigate the process of entering the SFURTI scheme successfully. This will enable you to leverage the scheme’s benefits and contribute to the growth and development of traditional industries and handicrafts in rural India.

Funding Details of the SFURTI Scheme

The Scheme of Fund for Regeneration of Traditional Industries provides funding support to promote the development and growth of traditional industries in rural areas. The funding details are as follows:

• Financial Assistance

The scheme offers financial assistance to eligible individuals, groups, and organisations engaged in traditional industries and handicrafts. The financial support can fund various purposes such as cluster development, infrastructure enhancement, capacity building, technology upgradation, and marketing initiatives.

• Infrastructure Development

Under the SFURTI scheme, financial assistance is provided for the creation or upgradation of infrastructure facilities that are crucial for the growth and competitiveness of traditional industries. This includes the establishment of common facilities, workspace development, raw material banks, product storage facilities, design centres, testing laboratories, and other necessary infrastructure requirements.

• Technology Upgradation

To enhance the productivity, efficiency, and competitiveness of traditional industries, SFURTI provides financial assistance for the adoption of modern technologies and machinery. This includes support for the procurement of advanced equipment, machinery, tools, and technology interventions that can help traditional artisans and entrepreneurs improve their production processes and product quality.

• Marketing Initiatives

Recognising the significance of market access, the scheme extends financial support for marketing initiatives. This includes assistance with market research, product branding, packaging, market linkage development, participation in trade fairs and exhibitions, e-commerce platform integration, and other promotional activities.

These initiatives help artisans and entrepreneurs gain a wider market reach with access to domestic and international markets, as well as enhanced visibility and demand for their traditional products.

It is important to note that the specific funding details, eligibility criteria, and application process may vary based on the SFURTI guidelines and updates provided by the implementing agency or authorities responsible for administering the scheme. Therefore, interested individuals and organisations should refer to the official scheme guidelines and contact the relevant authorities to obtain accurate and up-to-date information regarding the funding process and requirements.

Interventions Under the SFURTI Scheme

The Scheme of Fund for Regeneration of Traditional Industries offers various interventions to support and empower traditional sectors in rural areas. These interventions aim to address the specific needs and challenges faced by artisans, craftsmen, and entrepreneurs involved in traditional crafts and industries. Here are some key interventions under the scheme:

• Cluster Development

The SFURTI scheme focuses on promoting the development of clusters where artisans and entrepreneurs working in similar traditional industries can come together. This approach facilitates collaboration, resource-sharing, and collective growth. Clusters enable artisans to access common facilities, share knowledge and expertise, and collectively address market challenges.

• Infrastructure Development

The scheme provides support for the creation and upgradation of infrastructure facilities essential for the growth of traditional industries. This includes developing common workspaces, setting up raw material banks, establishing testing laboratories, and improving product storage facilities. Upgraded infrastructure enhances productivity, efficiency, and competitiveness.

• Skill Enhancement and Capacity Building

To strengthen the skills and capabilities of artisans and entrepreneurs, the SFURTI scheme offers training programmes and capacity-building initiatives. Here, artisans get training in traditional techniques, design innovations, quality control, and business management. These programmes equip them with the necessary skills to adapt to market demands and improve the overall value of their products.

• Technology Upgradation

The scheme promotes the adoption of modern technologies and machinery in traditional industries. The financial assistance provided facilitates the purchase of advanced equipment and machinery, enabling artisans to enhance their production processes, improve product quality, and increase efficiency.

• Market Linkages and Promotion

In addition to infrastructure and skill development, the SFURTI scheme emphasises the importance of market linkages and promotion for traditional industries. The scheme facilitates tie-ups with market aggregators, e-commerce platforms, exporters, and other marketing channels. This enables artisans and entrepreneurs to showcase their products to a wider audience, both domestically and internationally.

• Product Diversification and Design Innovation

SFURTI encourages artisans and entrepreneurs to explore product diversification and design innovation. By incorporating new design elements, patterns, and aesthetics, traditional products can become more appealing to contemporary consumers.

The scheme supports research and development activities, design workshops, and exposure to new trends and market preferences. This encourages artisans to create unique, innovative, and market-oriented products, enhancing their competitiveness and market positioning.

Application Process for the SFURTI Scheme

The SFURTI application process involves the following steps:

1. Notification and Application Announcement

The government or designated authorities responsible for implementing the scheme will release a notification that announces the scheme’s availability and invites applications. This notification provides details regarding the eligibility criteria, documentation requirements, and application submission deadlines.

2. Application Form and Documentation

Interested applicants need to obtain the prescribed application form from the designated authorities. They must carefully fill out the form, providing accurate and complete information. Along with the application form, applicants must submit the required documentation, which may include proof of identity, proof of address, business registration documents (if applicable), bank account details, and a project proposal with relevant details.

3. Application Submission

According to SFURTI guidelines, applicants need to submit their completed application forms and supporting documents to the designated authorities within the specified timeframe. It is crucial to attach all the required documents and to submit the application before the deadline.

4. Evaluation and Selection

The submitted applications will undergo a thorough evaluation process by the authorities. The evaluation criteria may include factors such as the feasibility and viability of the project proposal, alignment with the scheme’s objectives, and the potential impact on artisans and traditional industries. The authorities will select eligible applicants for further consideration based on this evaluation.

5. Approval and Disbursement

The selected applicants whose proposals meet the necessary criteria will receive approval for the SFURTI scheme. Once an applicant’s proposal receives the go-ahead, the authorities initiate the process of disbursing the financial assistance and support. This disbursement may occur in instalments or as per the milestones mentioned in the project proposal. The funds are typically transferred directly to the beneficiary’s designated bank account.

6. Implementation and Monitoring

After receiving the approval and funds, the applicant can proceed with the implementation of the proposed project. It is essential to adhere to the project plan, timelines, and guidelines specified by the scheme. Regular monitoring and evaluation by the designated authorities help ensure the project goes ahead as planned and achieves the desired outcomes. Applicants can address any deviations or challenges faced during implementation through proactive communication with the authorities.

7. Reporting and Compliance

Throughout the project implementation, applicants may need to submit periodic progress reports to the authorities. These reports help in tracking the project’s milestones, expenditures, and overall progress. It is crucial to maintain transparency and comply with the reporting requirements specified by the scheme. Non-compliance or deviations from the agreed-upon plan may affect the provision of future funding under this scheme.

8. Review and Impact Assessment

At the completion of the project or at specific intervals, the designated authorities may conduct a review or impact assessment to evaluate the project’s outcomes, achievements, and impact on the traditional industry and rural communities. This assessment also helps in measuring the effectiveness of the SFURTI scheme and identifying areas for improvement or further support.

It is advisable to thoroughly read and understand the scheme’s official documents, seek clarification from the designated authorities, and ensure that all the necessary steps and documentation are done accurately and within the specified timelines.

Final Takeaways

The Scheme of Fund for Regeneration of Traditional Industries involves various interventions and support measures aimed at enhancing the competitiveness and sustainability of traditional industries in India. By providing financial assistance, capacity building, and market access, it enables artisans and craftsmen to preserve their traditional skills, improve productivity, and tap into new markets.

The application process includes submitting a detailed project proposal, followed by an evaluation and selection process. Once approved, the scheme can offer a range of interventions, including infrastructure development, technology upgradation, skill development, and marketing support.

To fully leverage the benefits of the SFURTI scheme, applicants should carefully plan and execute their projects by following the prescribed steps, such as conducting a comprehensive study, formulating a detailed project report, and ensuring effective implementation and monitoring.

Frequently Asked Questions (FAQs)

Q1. What is the maximum duration for a project under the SFURTI scheme?

Ans. There is no fixed timeline mentioned for project completion under the SFURTI guidelines. The project duration can depend on the feasibility, implementation plan, and expected outcomes. Applicants for the scheme should provide a realistic and achievable timeline in their project proposal.

Q2. Can existing traditional industries apply for SFURTI support to upgrade their technology and infrastructure?

Ans. Yes, existing traditional industries are eligible to apply for SFURTI support to upgrade their technology and infrastructure.

Q3. Are there geographical restrictions or preferences for SFURTI projects?

Ans. No, there are no specific geographical restrictions or preferences imposed on SFURTI projects. Through this scheme, the government aims to promote and support traditional industries across various regions of India.

Q4. Is there a specific minimum or maximum project size or budget under the SFURTI guidelines?

Ans. No, there is no specific minimum or maximum project size or budget under the SFURTI guidelines. The scheme aims to accommodate a wide range of traditional industries by considering their diverse needs and capacities.

Q5. Can a project registered under SFURTI focus on multiple traditional industries?

Ans. A project registered under the SFURTI scheme can focus on either a single or multiple traditional industries.

Q6. What are the expected outcomes or deliverables of a project supported by SFURTI?

Ans. A project supported by the SFURTI initiative should aim to yield several outcomes and deliverables that contribute to the overall development and sustainability of traditional industries.

Q7. Does SFURTI extend support for projects from traditional industries in both rural and urban areas?

Ans. Yes, projects from traditional industries in both rural and urban areas can receive assistance according to the SFURTI guidelines. The scheme recognises the significance of traditional industries in various areas across India.

Q8. Can applicants implement projects in partnership with other organisations and institutions under SFURTI?

Ans. Yes, applicants can implement projects under SFURTI in partnership with other organisations and institutions. Such partnerships can bring together different stakeholders including government agencies, industry associations, research institutions, NGOs, and other relevant bodies.

Q9. Does SFURTI offer financial assistance or subsidies to traditional industries beyond the initial support provided?

Ans. Yes, the SFURTI initiative does offer financial assistance or subsidies to traditional industries beyond the initial support provided.

Q10. Can state governments and local bodies apply for SFURTI on behalf of traditional industries in their region?

Ans. Yes, state governments and local bodies can apply for the SFURTI scheme on behalf of traditional industries in their region. This encourages the active participation and involvement of state governments and local bodies in promoting the development and growth of traditional industries in India.