SFURTI (Scheme Of Fund For Regeneration Of Traditional Industries) - Objectives, Selection Criteria, Classification and Application Process

Published on May 05, 2020

About The Sfurti Scheme

The SFURTI scheme aims to strengthen the traditional industries which mean produce products for marketing from locally available raw materials, skills, technologies and having common fears and risks, produced and processed by a group of artisans, service providers, traders, suppliers of raw materials. The scheme aims to make a massive growth and development in this field by proper exporting to be as niche products by making so many employment opportunities and also the promotion of these products by great marketing strategies leads to optimum utilization of resources. Therefore the sfurti scheme, primarily designed and implemented for Micro and Small Enterprises(MSEs), the major problem of the requirement of the loan will be solved.

In 2005, the Ministry of Micro Small and Medium Enterprises, Govt. of India implemented this as a central sector scheme with a view of promoting the clusters. The scheme focuses on the development as Traditional Industry clusters by classifying all those artisans, traders as clusters. The major traditional industries classified as khadi and coir based industries and village industries.

The sfurti scheme then merged with the following schemes by recommendation of the planning commission working group on govt. XII plan such as:

  • The scheme for product development, design intervention and packaging. 
  • The scheme for rural industries service centre and other interventions like ready to wear and more. 
  • The scheme for enhancing productivity of khadi industries and artisans. 

Major Objectives

  • To maintain sustainable development for the industries.
  • To increase the marketability of products by proper support for new products.
  • Improving the package and also the improvement of the marketing products.
  • Promoting innovative and traditional skills and capabilities through training.
  • Increasing investments in the areas of product quality and design.
  • Promoting the presence by proper marketing in e-commerce.
  • To allow the conventional industries and the artisans as clusters to be more competitive.

Beneficiaries

  • Machinery makers, private business service providers, entrepreneurs, workers
  • Self-help groups, cooperatives, business associations.
  • Policymakers, implementing agencies, Govt. organizations.

Selection Criteria

  • The clusters are distributed throughout the country were having at least 10% for the Northeastern region.
  • Generating employment opportunities and the production growth will be the basic indicators.
  • The clusters are khadi, coir and village industries.
  • The selection should be a maximum of 500 beneficiaries of artisans, traders, suppliers etc.

Classification Of Sfurti Scheme

The sfurti scheme classified as of three types of project interventions which are soft interventions, hard interventions and thematic interventions:

Soft interventions

Motivation, counselling, capacity building and also skill development, product and design development, participation in training, workshops, technological up-gradation program, trust-building, initiatives for market promotional activities.

Hard interventions

It deals with the technological and commercial aspects such as updating of the system of production, improving the warehousing facilities, creation of facilities for so many products, training centre, value addition centre, processing centre.

Thematic interventions

It deals with the primary inclusion of innovation, initiatives by e-commerce, the building of the brand, promotion of media marketing. It includes the same sector for both domestic and international markets by providing equal emphasis.

Lending Facilities

For any specific project, the financial assistance provided will be a maximum of eight crores. But the amount will vary according to the type of clusters like as follows:

  • For Heritage, clusters will be eight cr.
  • For major clusters will be three cr.
  • For mini clusters will be one cr.

In heritage clusters there will be a maximum of 2500 artisans, in the major cluster, there will be a maximum of 1000 artisans and in mini clusters, there will be a maximum of 500 artisans in the case of Jammu and Kashmir, there is a 50 % reduction.

Lists of financial institutions eligible for lending:

  • All the scheduled commercial banks like the public sector banks, private sector banks and also foreign banks.
  • All the regional rural banks are classified by the NABARD.
  • As of May 31st (2016), almost 133 institutions registered as Member lending institutions

Eligibility

  • The micro and small enterprises whether it is new or old will be eligible for up to rs.100 lakh per unit of borrowing as its credit. Indeed no securities are also needed for availing the loan.
  • Guarantee scheme-as per this scheme, a maximum amount of 85% will be sanctioned can show guaranteed. For a loan of 5 lakh rs, the guarantee cover is 85% but for rs.50 lakh, it will be 75%.
  • Therefore the guarantee cover will be provided for between 50 and 100 lakhs only. 
  • Under the sfurti scheme, guarantee cover is for an agreed period. The guarantee cover will be for 5 years.
  • The fee charged under guarantee cover is 1.0% per annum. For 5 lakhs it will be 0.75% and for the amounts in between 5 lakh and, 100 lakh is 0.85%.

Coordinating Authority

The sfurti scheme coordinating authority which provides all the support and coordination, which is done by the Micro and small-medium enterprises. So under the chairmanship of the micro and small-medium enterprises, a special committee will constitute and that is the SCHEME STEERING COMMITTEE(SSC).

Agencies

Under the sfurti scheme, the required special expertise will need in the traditional industries, therefore agencies are constituted so new ADs are appointed by the SSC for better reach and competence for the development of the cluster. They are nodal agencies, technical agencies, implementing agencies.

Nodal Agencies:

  • These are the national level institutions with the required expertise with the main sectors of the traditional industries.
  • Under the sfurti scheme, the khadi and village industries commission (KVIC) will be the nodal agencies for khadi and village industry clusters and coir board (CB) will be the NA for coir based clothes.

The guidelines for new nodal agencies by the SSC are as follows:

  • Submitting the proposal for engaging the nodal agency.
  • The proposals will be appraised by the Scheme steering committee, on the basis of the merit of the entity in the promoting of the cluster development.

The responsibilities of the Nodal agencies are the following :

  • Responsibility to ensure the return of funds to the implementing agencies.
  • All the stakeholders should be notified by the nodal agencies about the TA appointment for the purpose of implementing the sfurti scheme.
  • All the support required for the TA for the implementation will be done by the NA.
  • Preparing the strategy and the plan.
  • Appraisal and approval from the state govt.
  • Shortlisting, recommending, reviewing, monitoring the projects.

Technical Agencies:

Under the sfurti scheme, providing the technical support towards the NA and IAs and also organising the training of the IA and NA by the TAs, monitoring the report on a monthly basis.

The responsibilities of technical agencies are as follows:

  • Generating awareness about the scheme.
  • Conducts a detailed post and suggesting the interventions.
  • Helps in the establishment of the implemented agencies.
  • Examining the proposals for final approval.
  • Drawing up of the plan and the marketing strategies in regarding the product packaging, pricing, mix, development etc. 

Implementing Agencies:

All the institutions of the govt. (both the centre and state), the non-govt. organizations, functionaries of the central and the state govt. for the purpose of the development of the cluster with suitable expertise are the implement agencies.

The major responsibilities are

  • Undertaking the appointment and procurement in a transparent and fair manner.
  • Furnishing of the process reports to the nodal agencies.

Online Application

1. Visit SFURTI page on KVIC official website.

2. Click on the "New User Registration" button.

3. Then a form will appear.

4. Fill up all the details required.

5. Submit the application.

Before that, every user have to read these guidelines carefully http://coirboard.gov.in/wp-content/uploads/2015/07/REVISED-SFURTI-GUIDELINES-30.06.2015.pdf

Implementation Methodology

  • Installation of web-based project management system.
  • Identifying the clusters tentative lists.
  • Engagement of tas.
  • SSC approval.
  • Final approval.
  • Release of funds.

Frequently Asked Questions

Q. What is the definition of traditional industries?

Under the sfurti scheme, the traditional industry is the activity which is producing the marketing products, using the raw materials and skills and technology. It is referring to the geographic focus of a number of traders, artisans, suppliers, retailers, micro-enterprises etc. 

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

No, it should be owned by the IA.

Q. Whether the working capital is given?

Yeah, 20% of the hard interventions utilize towards the working capital cost.

Q. What are the activities under soft intervention?

As per the sfurti scheme,

  • Capacity building

  • Counselling ,trust-building

  • Promotional measures

  • Product design

  • Participation in training programmes on the upgradations of technology, workshops, seminars.

  • Product development

Q. What will be the duration of the project?

3 years

Q. Why is SFURTI renamed as revamped sfurti?

After the success of the sfurti scheme, the evaluation showed the need to improve the sustainability of clusters. Therefore the revamped sfurti scheme was reframed by improving sustainability.

Q. What is sfurti?

making the traditional industries more competitive, in 2005-06 a central sector scheme titled sfurti scheme launched.

Q. Will artisans be the SPV members?

Yes, about 33% will be SPV members.

Q. Has more traditional industry taken up by the implementing agencies?

Never, normally it will be assigned only to just one cluster.


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WRITTEN BYVarsha Verma

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