The government initiated a new Scheme of Fund for Regeneration of Traditional Industries (SFURTI) that would fund enterprises to regenerate traditional businesses.
Attempting to tackle the issues faced by the MSME sector, Finance Minister Nirmala Sitharaman acknowledged to set up Common Facility Centres (CFCs) under SFURTI. Further, the implementation of the scheme to benefit the traditional industries by making them profitable, productive, and secure. Regarding the scheme, the targeted traditional industries are diversified as Khadi, coir-based, and village industries.
- Create clusters of the existing traditional enterprises to increase competitiveness and thus improve to perform better.
- Provide sustainable employment, market access, and equipment’s that assist the production and enhancement of the industry.
- Organize technical and development programme.
- Promote e-commerce for marketing and the need for sustained investment in the sector that guarantees the growth of the economy.
- Try to shift the product production to market-driven from supply-driven products.
The Focus of the Project
The scheme is concerned about three units
- Hard Intervention– This will encompass packaging, CFCs, Raw material Banks (RMBs), improvement of infrastructure, training, storehouse facility, processing of value-added goods.
- Soft Intervention– This will focus on activities such as skill development sessions, awareness and motivation, training and technical exposure and formulating the plan to design and develop a product.
- Thematic Intervention– This mainly encourages to use the upcoming techniques that will elevate the industry’s value. For instance, e-commerce, innovative marketing, research, and development initiations.
Who are Eligible to Apply for SFURTI?
Any individual or MSME related to the three interventions are covered under the scheme. The organizations that are eligible to apply are as follows:
- Non-Government Organizations
- Central and State Government institutions
- Semi-Government institutions
- Field Functionaries of the State and Central Government
- Panchayati Raj Institutions (PRIs)
Salient Features of the SFURTI Scheme
- The scheme is coordinated by scheme Steering Committee (SSC) under the MSME chair of secretary
- The scheme will have nodal agencies:
- Khadi and Village Industries Commission
- Coir Board
- Technical Agencies that are national-level and must have experience in cluster enhancement shall be allotted for providing technical assistance
Benefits of the SFURTI Scheme
As mentioned, the scheme encompasses the three units and provides
- Heritage cluster with 1000 to 2500 crafts person- approximately Rs 8 crore.
- Major cluster with 500- 1000 workers- Rs 3 crore.
- Mini cluster with around 500 workers- Rs 1.5 crore.
The Beneficiaries of the SFURTI Scheme
- 100% scheme funding given to Soft interventions of up to Rs 25 lakh.
- 75% of funding provided to hard interventions depending on the necessities of the scheme.
- A maximum of Rs 20 lakhs given to Executing agency.
- 8% of the estimate provided to the Technical Agency.
Procedure of Applying for SFURTI
The organization or the personnel availing the SFURTI scheme must acquiesce a proposal to State Office, KVIC. Further, the proposal is examined at the State level and Zonal level. Once the verification is complete, the proposal is submitted to the steering committee. The MSME is under the provisions of the scheme after approval.