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Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Traditional industries in India plays a major role in providing more employment opportunities at lower capital cost, and also helps in industrialization of rural & backward areas, thereby reduces regional imbalances and movement from rural to urban areas.

For making these industries more productive and competitive, Govt. of India launched a scheme called Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in 2005-2006. Under this scheme Traditional Industries and artisans are organized into clusters and funded by government with the assistance of Asian Development Bank

The Scheme was implemented by the Ministry of Micro, Small and Medium Enterprises (MSME) and its organizations ( Khadi and Village Industries Commission-KVIC and Coir Board), in collaboration with State Government, their organizations and non-governmental organizations


  1. Organizing the traditional industries and artisans into clusters and making them competitive ;
  2. Providing support for their long term sustainability and economy of scale;
  3. Ensure maximum employment opportunity for traditional industry artisans and rural entrepreneurs;
  4. To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure;
  5. To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
  6. To make provision for common facilities and improved tools and Equipment for artisans to promote optimum utilization of infrastructure facilities;
  7. To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner;
  8. To look for setting up of multi-product cluster with integrated value chain and a strong market driven approach for viability and long term sustainability of the cluster;
  9. To tap the E-Commerce as a major marketing channel

About Clusters

There shall be three types of clusters involving artisans from 500 to 2500. The three types of clusters with their number and approximate artisan coverage for the first phase is as under:-

Type of clusters Approx. Artisan coverage
Heritage clusters(1000-2500 artisans) 5000
Major clusters(500-1000 artisans) 10000
Heritage clusters(1000-2500 artisans) 29500


Implementation of Scheme

  • The Ministry of Micro, Small and Medium Enterprises (MSME) will be the coordinating Ministry providing overall policy, coordination and management support to the Scheme.
  • A Scheme Steering Committee (SSC) will be constituted under the chairmanship of Secretary (MSME),
  • The SSC will consider the proposals of clusters and the Implementing Agencies (IAs) submitted by Nodal Agencies (NAs – are national level institutions) and shall extend approval to the cluster proposals.
  • The cluster proposals will include the details of TA and IA proposed by NA

Submission of Proposals

  • Proposal (one hard copy and one soft copy) in the prescribed proforma along with necessary enclosures and endorsement from the Head of the Institution/Agency/Trust/Company desirous of being empanelled as Nodal Agency for anchoring Cluster development
  • The proposal should be sent to the following address:-

The Joint Secretary (ARI Division),

Ministry of Micro, Small & Medium Enterprises,

Room No.171 Udyog Bhawan, New Delhi -110011.

Telephone (011) 23061543 Telefax: (011) 23062858

E-mail: [email protected]

Time Frame

The time frame for the implementation of the project for each cluster will be three years.

For Detail guidelines and application proforma Click Here

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