Govt Schemes

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Scheme of Fund for Regeneration of Traditional Industries (SFURTI) (Ministry of MSME)

Scheme of fund  for regeneration of traditional industries for cluster development of khadi village industries and coir enterprises.


  • 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 ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
  • To identify and understand cluster‟s target customers, understand their needs and aspirations and develop and present product lines to meet the requirement. Substantial focus should be on the buyer segment that places a premium on natural, eco-friendly, ethically sourced and the uniqueness of the Khadi and VI products.
  • To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value.
  • To make a paradigm shift from a supply driven selling model to a market driven 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, there 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. Research need to be done to develop new textures and finishes to cater to the prevailing market trends.

Project Interventions

The Scheme would cover three types of interventions namely soft interventions, hard interventions and thematic interventions. Soft Interventions under the project would consist of activities such as:

  • General awareness, counselling, motivation and trust building.
  • Skill development and capacity building/ for the entire value chain different skills need to be imparted.
  • Institution development.
  • Exposure visits.
  • Market promotion initiatives.
  • Design and product development.
  • Participation in seminars, workshops and training programmes on technology up-gradation, etc.

Hard interventions will include creation of following facilities:

  • 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 such as charkha up-gradation, toolkit distribution, etc.
  • Warehousing facility.
  • Training center.
  • Value addition and processing center/multi-products.

In addition to the above mentioned hard components and soft components, the scheme will also support cross-cutting thematic interventions at the sector level including several clusters in the same sector with emphasis on both domestic and international markets. These will primarily include:

  • Brand building and promotion campaign.
  • New media marketing.
  • e-Commerce initiatives.
  • Up-gradation of production infrastructure.
  • Innovation.
  • Research & development initiatives.
  • Developing institutional linkages with the existing & proposed clusters

Financial Assistance

  • 1. 75% Grant will be extended for establishing common facility centre, product development and design intervention. 
  • 2. 100% Grant will be extended market promotion assistance and capacity building measures These assistance will be based on the allocation of fund for each cluster.
  • The financial assistance provided for any specific project shall be subject to a maximum of Rs 8 (eight) crore.

Who can apply

  • Artisans, workers, machinery makers, raw material providers, entrepreneurs, institutional and private business development service providers.
  • Artisan guilds, co-operatives, consortiums, networks of enterprises, self help groups, enterprise associations.
  • Implementing Agencies, field functionaries of govt. institutions/organizations and policy makers directly engaged in regeneration of traditional industries.

How to apply

Government organization/NGOs working in the coir sector can apply in the prescribed format to Coir Board through state Government with recommendation for establishing clusters as per the guidelines.

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