Cluster development is a strategy of the Ministry of Micro, Small and Medium Enterprises (MSMEs) that aims to enhance productivity, competitiveness and capacity building within India. A cluster refers to a group of enterprises that are located in an area and produce similar products. To promote such clusters, the Government of India has launched SFURTI Scheme.

The following sections provide a detailed discussion on the SFURTI MSME Scheme. Stay tuned!

SFURTI scheme is a Scheme of Fund for Regeneration of Traditional Industries. The Ministry of Micro, Small and Medium Enterprises introduced this scheme in 2005 with the objective to promote cluster development.

MSME SFURTI Scheme hopes to organize the traditional artisans and industries into clusters so that those industries become competitive and profitable. Further, this scheme aims to generate employment for rural entrepreneurs and artisans and to enhance the marketability of products.

SFURTI Scheme plans to establish Common Facility Centres (CFCs) to generate sustained employment opportunities.

SFURTI scheme primarily focuses on khadi, bamboo and honey clusters.

As per the revised SFURTI guidelines, the below-mentioned schemes are merged into this scheme,

• Scheme for Product Development, Design Intervention and Packaging (PROTIP)
• The scheme for enhancing productivity and competitiveness of khadi industry and artisans
• Scheme for Rural Industries Service Center (RISC)
• Other small interventions like Ready to Wear Mission, Ready Warp Units, etc.

As the meaning of SFURTI is clear to individuals, let’s move on to learn about eligibility criteria, application process and documentation.

To be able to get selected as a cluster under the SFURTI Scheme, beneficiaries have to fulfil the following eligibility criteria. 

• There must be 500 beneficiary families comprising micro-enterprises or artisans, service providers, traders, suppliers of raw materials.
• These beneficiary families must be located in one or two revenue sub-divisions in a district.
• These clusters must belong to bamboo, khadi, honey and village industries.
• The geographical distribution of clusters must include 10% area from the North-Eastern region.

Following is a list of potential applicants of SFURTI scheme,

• Non-Government Organizations (NGOs)
• Semi-Government institutions
• State and Central Government field functionaries
• Panchayati Raj institutions (PRIs)
• Central and State Government institutions
• Corporate responsibility foundations
• Private sector with special SPV

Below is described the application procedure of SFURTI Scheme.

• Step 1- To apply for the SFURTI scheme, eligible organizations or agencies have to submit their proposal to the respective State Office or the KVIC.
• Step 2- The officials at the State level and Zonal level scrutinize these applications.
• Step 3- Next, these officials send the proposals to the Steering Committee for approval.

To complete the application process and get the subsidy allocated for each cluster, applicants must submit the following documents,

• Aadhaar card
• Residence certificate
• Bank details
• Income certificate
• Passport size photograph

Here is a list of benefits that individuals can enjoy under the SFURTI Scheme,

• SFURTI Scheme allows traditional and local artisans to enhance their skills and manufacturing abilities so that they can get increased employment opportunities and economic stability. Artisans receive special training to improve their skills.
• This Government-backed scheme helps establish cluster-based industries in sub-divisional areas of a district. This establishment allows individuals to work on new business plans, utilize technology, upgrade working methods, enhance knowledge regarding marketing technicalities. Thus, individuals can make new partnership plans.
• This scheme allows the integration of various artisans into the cluster; thus, overall growth in that specific region is ensured.
• SFURTI scheme provides artisans with required equipment tools. Therefore, workers can improve their product as well as service quality.
• This scheme allows the active participation of stakeholders. These stakeholders continuously look for opportunities in these clusters, thus ensuring their economic growth.
• SFURTI scheme focuses on ongoing market trends, customers and their needs. Thus, workers can organize their unorganized production and utilize total artisan force to manufacture products with maximum value.
• This scheme understands the potency of E-commerce as a business channel and marketing. Thus, artisans can get the chance to make their products known to the world through an E-commerce platform.
• SFURTI scheme provides subsidy/financial assistance to clusters. The densest or highest clusters (artisan with 1000 to 2500 in number) will receive ₹8 crores as subsidy. Major clusters (with 500-1000 artisans) will receive ₹3 crores. Lastly, Mini clusters (with up to 500 artisans) will get ₹1.5 crores.

From the piece mentioned above, individuals can get complete knowledge of the SFURTI Scheme. Read these details and enjoy the benefits offered under this scheme.