Scheme of Fund for Regeneration of Traditional Industries

DBT (direct benefit transfer): No

Scheme open date: 2005-04-01

Categories: Banking,Financial Services and Insurance, Business & Entrepreneurship

Sub-categories: Machine & skill up-Gradation, Loan, Technology upgradation

Target beneficiaries: Artists, Government Organisation, Industries, NGO, Registered Societies, Self Help Groups (SHGS), State Government

Tags: SFURTI, Traditional Industries, MSME, Coir, Soft Intervention, Hard Intervention, Thematic Intervention

• 1. 100% of Project cost excluding/except Hard Interventions. 1. 90% of Hard Intervention is eligible for the North Eastern Region
• UT of Jammu & Kashmir and Hill States and 75% of Hard Intervention for Others. Project Intervention Scheme Funding Financial Limit Financial Limit Implementing Agency Share ACluster InterventionsA1Soft Interventions including skill training capacity building and design development 100%Subject to a maximum of 33% of A (Total cost of Cluster Interventions both hard and soft interventions) or ₹25.00 lakh whichever is less.Maximum ₹8 crores per project (A+B+C)NilA2Hard Interventions including CFCs RMBs training Centres etc. 75%Maximum ₹8 crores per project (A+B+C)25% of Project CostBCost of Technical Agency 100%8% of A1+A2 (Total cost of Cluster Interventions both hard and soft interventions)Maximum ₹8 crores per project (A+B+C)NilC Cost of IA/SPV including CDE100%Maximum ₹20.00 lakh per project.Maximum ₹8 crores per project (A+B+C)Nil 90%:10% in the case of the North Eastern Region (NER)
• UT of J&K and hill states. This may include remuneration of Cluster Development Executive (CDE) and other expenses incidental to the entire 3-year project implementation

What is SFURTI?

To make the traditional industries more productive and competitive and facilitating their sustainable development, the Govt. of India announced in 2005-06, setting up of a fund for regeneration of traditional industries. Pursuant to this announcement, a Central Sector Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” was launched.

Which ministry is implementing this scheme?

The Ministry of Micro, Small & Medium Enterprises is implementing the scheme with a view to organizing traditional industries and artisans into clusters to make them competitive and increase their income.

What are the objectives of SFURTI?

To develop clusters of traditional industries in the country over a period of five years. To make traditional industries more competitive, market-driven, productive, and profitable. To strengthen the cluster governance systems with the active participation of the stakeholders. To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence, and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.

Who can apply for SFURTI?

Following is the list of organisations/institutions that can apply for SFRUTI: Non-Government Organizations (NGOs) Institutions of the Central and State Governments Semi-Government institutions Field functionaries of State and Central Government Panchayati Raj Institutions (PRIs)

What is the duration of Project?

The time frame for implementation of Project will be 3 years.

How many types of Interventions are covered under Scheme?

The Scheme covers three types of interventions: Soft Interventions, Hard Intervention & Thematic Interventions

What the activities covered under Soft Intervention?

Soft Interventions under the project would consist of activities such as i. General Awareness, counseling, motivation and Trust building ii. Skill development and Capacity Building iii. Institutional development iv. Exposure visits v. Market Promotion initiatives vi. Design and Product Development vii. Participation in seminars, workshops and training programmes on technology up-gradations, etc.

What the facilities covered under Hard Intervention?

Hard interventions will include creation of following facilities: i. Creation of Common Facility Centres (CFCs) ii. Raw Material Banks (RMBs) iii. Up-gradation of Production Infrastructure iv. Tools and Technological up-gradation such as Charkha upgradation, tool-kits distribution, etc v. Warehousing Facility vi. Training Centre vii. Value addition and processing centre Note: The assistance for raw material bank (RMB) shall be leveraged with financial institution for enhanced credit.

Whether the cost of land is included in the project cost?

No. Land should be owned by Implementing Agency.

Who can play the role of Implementing Agencies (I.A.)?

Implementing Agencies (IAs) would be non-Governmental Organisations (NGOs), Institutions of the Central and State Governments and Semi-Government Institutions, field functionaries of State & Central Government Panchayati Raj Institutions (PRIs), etc suitable expertise to undertake cluster development. One IA may normally be assigned only one cluster (unless it is an agency with State-wide coverage). The selection of IAs, based on their regional reputation and experience of working at the grass-roots level, will be done by the Nodal Agencies (NAs), on the basis of transparent criteria. Private sector participation shall also be encouraged for the implementation of the cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs. Corporates and Corporate Social Responsibility (CSR) foundations with expertise in cluster development will be encouraged to participate as IAs.

Can implementing agencies take up more than one traditional industry?

No. One Implementing Agency may normally be assigned only one cluster (unless it is an agency with State-wide coverage).

Who can play the role of Technical Agencies (T.A.)?

Established national/ regional level institutions, with proven expertise in artisanal and small enterprise cluster development shall be empanelled as Technical Agencies by Nodal Agency (N.A.) only can play the role of Technical Agency (T.A).

What is the definition of “Traditional Industry”?

Broadly, "Traditional Industry‟ means an activity which produces marketable products, using locally available raw materials and skills and indigenous technology. Traditional Industry Cluster, in the Context of this document, refers to a geographical concentration of a sizable number of artisans or micro-enterprises, suppliers of raw materials, traders, service providers, etc. producing, processing, and servicing the same or similar types of products and facing common opportunities and threats

What is Coir?

Coir is generally referred to as “Golden Fibre”, which is a bye-product of coconut, extracted from the coconut husk.

What is the definition of “Traditional Industry”?

Broadly, “traditional industry‟ means an activity which produces marketable products, using locally available raw material and skills and indigenous technology. Traditional Industry Cluster, in the context of this document, refers to a geographical concentration of a sizable number of artisans or micro enterprises, suppliers of raw materials, traders, service providers, etc. producing, processing and servicing the same or similar types of products and facing common opportunities and threats.

What is a cluster?

Clusters are defined as “geographical concentrations of inter-connected enterprises and associated institutions that face common challenges and opportunities”. This definition highlights two essential features of clusters: they consist of a critical mass of enterprises located in geographical proximity to each other and enterprises within them share many common features.

What is the CFC?

Common Facility Centre (CFC) is one of the Components in Hard Intervention where which artisans/end users can utilize the machineries installed thereon and manufacture coir based value added products. CFC can also be used as a warehouse for storing and maintaining finished products.

How to apply for SFRUTI?

The above eligible agency/organization has to submit the proposal online through the SFURTI Portal (https://sfurti.msme.gov.in/SFURTI/SignUp.aspx) and the same is to be scrutinized at the State Level and Zonal Level before submitting it to the Scheme Steering Committee for approval.

• https://www.myscheme.gov.in/schemes/sfurti
• http://coirboard.gov.in/?page_id=221
• https://sfurti.msme.gov.in/WriteReadData/Circular/SFURTI_NEW.pdf
• https://www.coirservices.gov.in/frm_login.aspx
• https://www.kviconline.gov.in/sfurti/jsp/FrequentlyAskedQuestions.pdf

Official Website

http://coirboard.gov.in/?page_id=221

Guidelines

https://sfurti.msme.gov.in/WriteReadData/Circular/SFURTI_NEW.pdf

Coir Board

https://www.coirservices.gov.in/frm_login.aspx

FAQs

https://www.kviconline.gov.in/sfurti/jsp/FrequentlyAskedQuestions.pdf