written by | May 9, 2022

SFURTI Scheme: Full Form, MSME Subsidy and Who can Apply

SFURTI is a Scheme of the Fund for Regeneration of Traditional Industries. The Ministry of MSME launched this scheme in 2005 to boost the development of clusters. KVIC is the Nodal Agency for promoting cluster development in Khadi and also for V.I. products. To date, 76 clusters have been set to live as per the program, and the majority of these clusters are completed.

Of the 76 clusters, the revamped SFURTI cluster will intensify the program's viability beyond the project's duration by creating a Special Purpose Vehicle (SPV) or considered SPV. Additionally, the revised guideline includes several new options for the overall development of clusters of SFURTI.

Did you know?

The SFURTI scheme initiates actual provisions for centres and facilities. It enriches workers and artisans with a greater set of equipment to improve the service and product quality. Indirectly, the scheme ensures that the artisans make the maximum use of the resources and facilities available. What are the exact objectives of SFURTI? Know by referring to the following section.

Also Read: All About Small Scale Industries in India (SSI) and Their Registration Process

The Objectives of the MSME SFURTI Scheme

  • Organise traditional and craft industries into clusters to ensure their long-term viability and increase their competitiveness.

  • Create sustainable jobs for traditional artisans and rural entrepreneurs of the industry.
  • Increase the appeal of cluster-related products by supporting their products with improved packaging, innovative designs and marketing infrastructure.
  • Equip traditional artisans of the clusters in question with enhanced capabilities and knowledge by exposing them to training and visits.
  • Provide basic facilities and better equipment and tools for artisans to ensure optimal use.
  • Strengthen the specific cluster governance system by involving all stakeholders in assessing the opportunities and challenges and responding in a coordinated manner.
  • Develop the traditional and creative skills needed for advanced processes, market information, better technologies and the development of new models for PPP (Public-Private Partnerships).
  • Establish an all-product cluster with an effective market-driven strategy and a well-integrated value chain to ensure the long-term viability and sustainability of the group's future.
  • Ensure that all aspects of the cluster's formation and operations.
  • Comprehend and determine the target market of the cluster, know their goals and needs and then develop and present product lines that satisfy the requirements.
  • Create specific lines of products based on the target consumer segment of the array of products present.
  • The shift from a selling model based on supply to a market-driven model with a mix of products, proper concentration on branding, adequate positioning and pricing. It will ensure that the product is the best for each segment.
  • Tap into the e-commerce market channel to expand and increase the market share of e-commerce. Also, to develop an approach to establish its presence in the online retail market.
  • The goal is to make a significant investment in improving products' design and quality.

In the following section, we have summarised the SFURTI guidelines to enhance the efficiency of different industries.

A Summary of SFURTI Scheme Guidelines

If we talk about what is SFURTI scheme, understanding its guidelines is the most important. The Indian government announced the formation of a fund to support traditional industry revival that will begin with an investment of ₹100 crores. The goal is to improve the efficiency and competitiveness of traditional industries while encouraging their growth over the long term. 

In response to this announcement, the government approved a Central Sector Scheme - "SFURTI" at the cost of approximately ₹97.25 crores. The Ministry of MSME and its partners implemented the scheme in conjunction with the state government agencies, their respective organisations and non-governmental organisations (Khadi and KVIC, along with the Coir Board).

The mechanisms for managing clusters are strengthened through the active involvement of all the stakeholders. About 70 clusters would be set up across the country as part of the SFURTI plan, with an investment total of approximately ₹149.44 crores.

In addition, the 12th Five Year Plan states that around 800 clusters are planned with the help of the Asian Development Bank and the Indian government. In addition, the Indian government has allocated three years to each cluster's implementation.

We have summarised the SFURTI guidelines, but what about the eligibility? The following section illustrates the complete information about the eligibility for selecting clusters. Apart from that, you will know the step-by-step procedure to apply this yourself.

The Eligibility for Selection of Clusters

The geographic area of the cluster determines the choice of clusters. There should be approximately 500 beneficiaries families of micro and artisans, companies, traders and suppliers of services, raw materials, etc. It should be located within two or more revenue divisions in the district.

These clusters could comprise coir, khadi and village industries, including leather and pottery. The development of production and jobs is considered in selected clusters of SFURTI. The distribution of clusters across the nation has to be at a minimum of 10% in Northern regions, and these regions come into consideration when deciding on clusters.

The Steps to Apply for MSME SFURTI Scheme

  1. Log in to the official website for SFURTI Yojana, i.e. SFURTI.msme.gov.in.
  2. On the Homepage, select the "Sign Up" option; The screen will show your SFURTI Application page.
  3. Under Choose Agency option, select the type of agency and organisation. A web-based browser will open with the registration form for SFURTI.
  4. Provide the User Name, Email Address, State District, Mobile Number, Password, Address Pincode and Verification Code.
  5. Once you've completed that, click Submit to finish the registration.
  6. Once logged onto your SFURTI account, make an additional proposal with the necessary details and documentation.
  7. Lastly, hit the SFURTI proposal form's Submit button.

Also Read: A Guide to Stand Up India Scheme

What Is SFURTI Yojana Financial Support?

The amount of financial aid for any project is a maximum of ₹8 crores.

  1. For noteworthy clusters (comprising 500 to 1000 artisans), a ₹3 crores budget amount will be set.
  2. For in the North-East Region of Jammu & Kashmir and the Hilly States, there will be a 50% decrease in the number of artisans per cluster.
  3. Heritage clusters (around 1000-2500 artisans) will receive a maximum of up to ₹8 crores budget.
  4.  In the case of mini-clusters (up to 500 artisans), up to ₹1.50 crores budget is on offer.

What are SFURTI Scheme Interventions?

The three types of interventions that the SFURTI scheme cover are:

1. Soft Interventions

It includes general knowledge about the program, building trust, motivation and counselling. Also, it helps develop the skills of artisans, the establishment of institutions and capacity building. Other actions taken include the exposure of artisans to visitors and the development/design of products.

2. Hard Interventions

Create clusters of various items and packaging. Other initiatives include storage of raw materials, technological upgrades, warehouse facilities, common facility centres and common facility centres.

3. Thematic Interventions

These include various clusters within a single sector, highlighting domestic and international markets. It receives support from marketing campaigns, building brands and expanding to new markets and clients through collaboration with online stores.

The Agencies that Implement the MSME SFURTI Scheme

The implementing agencies will include NGOs, organisations that are part of Central & State Governments & Semi-Govt. Also, it will consist of field functionaries, institutions of the state Panchayati Raj Institutions, Central Govt, etc. They will have the necessary knowledge to carry out cluster development.

One IA will be assigned to one cluster unless it's an agency that has statewide coverage. The choice of I.A.s will be based on their local reputation and the experience of working at the grassroots levels. Considering the transparent guidelines, the Nodal Agencies will make selections for that.


SFURTI yojana is a growth-oriented initiative of the Government of India which came into effect in 2005. The plan aims to integrate rural-based industries across different country regions to be economically stable, competitive and profitable.

To achieve this goal, government officials from the Indian administration have allocated funding besides Nodal Agencies. The goal is to improve the degrading conditions of rural-based industries and build determination in rural communities. Also, you might have to make a lot of transactions after starting a job.
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Q: What is the maximum amount that the SFURTI scheme can approve?


 The program allows for up to ₹8 crores of funds to cover hard, soft and theme interventions. To qualify as a cluster, there should be a minimum of 1000-2000 craftsmen. 

Q: Who are the people who can be Tech Agencies (T.A.)?


Only established regional and national level institutions with proven competence in small enterprise and artisanal cluster development are appointed to technical agencies through the Nodal Agency (N.A.) under MSME SFURTI.

Q: How much working capital is available through SFURTI yojana?


20% of the cost of the hard intervention will be used to fund working capital under the SFURTI MSME scheme. That's a great percentage, though.

Q: What is the most amount of time allotted to complete the project in MSME SFURTI?


The plan allows for up to three years to finish the project, which is the longest duration for project completion.

Q: What is the SFURTI scheme?


The Ministry of MSME has launched the SFURTI scheme to promote cluster development for Khadi and V.I. products.

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