154 Clusters Approved During 2018-20 Against a Target of 100 Under Sfurti Scheme

      WHY IN NEWS:

Union Minister for Micro, Small and Medium Enterprises and M/o RT&H, Shri Nitin Gadkari informed the Lok Sabha in a written reply today that 154 Clusters when approved during 2018-20 against a target of 100 under Scheme of Fund for Regeneration of Traditional Industries (SFURTI) to promote traditional Industries and Artisan.

SYLLABUS COVERED: GS 3:Industries:MSME:Schemes


For PRELIMS this scheme details are important;Provisions;Management;Funds etc


Image result for SFURTI

Ministry ? Ministry of Micro,Small & Medium Enterprises


  • SFURTI is Scheme of Fund for Regeneration of Traditional Industries.
  •  Govt. of India has launched this scheme in the year 2005 with the view to promote Cluster development.


  • To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale;
  • To provide sustained employment for traditional industry artisans and rural entrepreneurs;
  • 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;
  • To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
  • To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities;
  • 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;
  • To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public – private partnerships, so as to gradually replicate similar models of cluster – based regenerated traditional industries
  • 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;
  • To identify and understand cluster‟s target customers, understand their needs and aspirations and develop and present product lines to meet the requirement.
  • To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment.
  • To make a paradigm shift from a supply driven selling model to a market drive n model with the right branding, focus product mix and correct positioning and right pricing to make the offering holistic and optimal for each of the focus categories.
  • To tap the E-Commerce as a major marketing channel given the outreach and the growing market penetration of E-Commerce, the re is a need to devise a quick strategy to make its presence felt in the E – Retail space.
  • To make substantial investment in the area of product design and quality improvement. There is a need to standardise the quality of inputs and processes so that the products meet the quality benchmarks.


  • Artisans, workers, machinery makers, raw material providers, entrepreneurs, institutional and private business development service (BDS) providers.
  • Artisan guilds, cooperatives, consortiums, networks of enterprises, self-help groups (SHGs), enterprise associations, etc.
  • Implementing agencies, field functionaries of Government institutions/organisations and policy makers, directly engaged in traditional industries.


  1. Khadi and Village Industries Commission – for Khadi and Village Industry clusters
  2. Coir Board – Coir based clusters


The selection of clusters will be based on their geograpcal concentration which should be around 500 beneficiary families of artisans/micro enterprises, suppliers of raw materials, traders, service providers, etc., located within one or two revenue sub-divisions in a District (or in contiguous Districts).

The clusters would be from khadi, coir and village industries, including leather and pottery.

The potential for growth in production and generation of employment opportunities will also be considered in selecting clusters under SFURTI.

The geographical distribution of the clusters throughout the country, with at least 10 per cent located in the North Eastern region, will also be kept in view while selecting clusters.


The Scheme cover s three types of interventions namely  “soft interventions‟, ‘hard interventions’ and ‘thematic interventions‟.

  • SOFT INTERVENTIONS – General awareness, counselling, motivation and trust building; Skill development and capacity building; Institution development;etc
  • HARD INTERVENTIONS – Creation of facilities such as Multiple facilities for multiple products and packaging wherever needed; Common facility centres (CFCs); Raw material banks (RMBs); Up-gradation of production infrastructure; Tools and technological up-gradation; Warehousing facility; Training center etc
  • THEMATIC INTERVENTIONS – cross – cutting thematic interventions at the sector level including several clusters in the same sector with emphasis on both domestic and international markets .


Type of clusters Per Cluster Budget Limit
Heritage Clusters (1000 – 2500 artisans) Rs 8.00 crore
Major Clusters (500 – 1000 artisans) Rs 3.00 crore
Mini – Clusters (Upto 500 artisans) Rs 1.50 crore

      IASbhai WINDUP: 

SFURTI scheme is to organize the traditional industries and artisans into clusters to make them competitive, provide support for their long term sustainability, to provide sustained employment for traditional industry artisans & rural entrepreneurs, to enhance marketability of products etc.

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