Scheme of Fund for Regeneration of Traditional Industries (SFURTI)- UPSC

The Ministry of Micro, Small, and Medium Enterprises (MSME) launched 50 artisan-based SFURTI clusters throughout 18 states to support the MSME sector.

• The Ministry of MSME is conducting a Fund for Regeneration of Traditional Industries (SFURTI) Scheme with the goal of organizing traditional industries and craftsmen into clusters in order to boost their competitiveness and income.

Key Points

• The Ministry of MSME launched this scheme in the year 2005 with the view to promote Cluster development.
  • Khadi and Village Industries Commission (KVIC) is the nodal Agency for promotion of Cluster development for Khadi as well as for Village Industries products.
• SFURTI clusters are of two types i.e., Regular Cluster (500 artisans) with Government assistance of up to Rs. 2.5 crore and Major Cluster (more than 500 artisans) with Government assistance up to Rs. 5 crore.
• The Ministry promotes infrastructure development through Common Facility Centers (CFCs), machine acquisition, raw material banks, design interventions, packaging improvements, and skill and capacity development.
• Besides, the scheme focuses on strengthening 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.
  • It is accomplished by developing creative and conventional skills, enhanced technology, advanced processes, market information, and new public-private partnership models, with the goal of gradually replicating similar cluster-based traditional industries.

Other Recent Initiatives to Promote MSME Sector

• Udyog Aadhaar Memorandum (UAM): It is a simple one-page registration form to promote ease of doing business for MSMEs in India.
• A Scheme to Promote Innovation, Rural Industry, and Entrepreneurship (ASPIRE):The scheme encourages innovation and rural entrepreneurship through the rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI), and Fund of Funds for start-ups in the agro-based sector.
• Credit Guarantee Fund Scheme: To facilitate easy flow of credit, guarantee cover is provided for collateral free credit extended to MSMEs.
• The Prime Minister’s Employment Generation Programme (PMEGP) provides credit-linked subsidies to establish new micro-enterprises and create jobs in both rural and urban parts of the country.
• The Credit Linked Capital Subsidy Scheme (CLCSS) helps Micro and Small Enterprises (MSEs) upgrade their technology by offering a 15% capital subsidy on plant and machinery purchases.