SFURTI scheme MSME.pdf
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The SFURTI scheme, initiated by the Ministry of MSME in India, aims to provide financial support to clusters of traditional industries such as khadi and handicrafts to enhance their competitiveness and sustainability. The scheme allows sanctioned funds of up to Rs. 5 crore for cluster development based on the size of the artisan group, and is implemented with the help of several agencies including nodal and technical agencies. Overall, SFURTI seeks to improve infrastructure and promote entrepreneurship within traditional industries through a structured approach to cluster development.
SFURTI scheme MSME.pdf
- 1. SFURTI Scheme: A Short Explanation Explanation of Scheme of Funds for Regeneration of Traditional Industry by Ministry of MSME of Government of India
- 2. AIMS AND OBJECTIVES SFURTI stands for Scheme of Funds for Regeneration of Traditional Industry. The aim of the scheme to provide financial benefit to Clusters of Traditional Industries such as Khadi, Coir and other handloom and handicraft industries.
- 3. idea of SFURTI Scheme “Industries / Artisans require quality infrastructure support to meet customer expectation, survival in competitive market and to be ready for export by absorbing technology balance. The fragmented approach of infrastructure creation for artisans and enterprises has not been very conducive for promoting entrepreneurship and bringing market fit product from existing enterprises. After due consultations with stakeholders, State Governments and as a part of ease of doing business, making scheme simpler, deliverable, transparent, monitorable and DBT compliant, the existing schemes have been revised for convergence and simplified to bring clarity of goals and role”.
- 4. What is a Cluster? A cluster is identified by a group of craftsman and artisans working together in manufacturing and sale of traditional commodities. The specifically provide funds for development of a cluster.
- 5. How much amount is spent on Cluster? The Ministry of MSME through its governing body, i.e. the Scheme Steering Committee in a cluster development project sanctions funds upto Rs. 5 Crore. The below table demonstrate the funding method in the scheme: Type of Cluster Per Cluster Budget Limit Regular Cluster (upto 500 artisans) Rs. 2.50 Crore Major Cluster (more than 500 artisans) Rs. 5.00 Crore
- 6. The Functionaries and Agencies Under SFURTI Scheme Steering Committee Technical Agency Nodal Agency Implementing Agency Working Committee The scheme is implemented by the assistance of nationally recognized well established agencies which have experience in cluster development program.
- 7. Scheme Steering Committee It is an institution which heads the operation of the scheme, directly managed by the Ministry of MSME (Government of India). The primary and most important function of SSC is to receive proposals for cluster development projects by the Implementing Agency on behalf of Nodal Agency.
- 8. Nodal Agency They are national level institutions having experience in setting up of traditional industry cluster at regional or national level. These agencies have experience in cluster development, project management and facilitation for accessing markets. Nodal Agency like COHANDS India are experienced in setting up of handloom and handicraft cluster.
- 9. Technical Agency The agency provides technical support in preparation and documentation for cluster development program which involves preparation of Detailed Project Report and other supporting documents for a cluster. The Agency assists both the Nodal Agency and Technical Agency by providing close handholding support in project implementation.
- 10. Implementing Agency They are non-government organizations (NGOs) or institutions of government or Panchayati Raj institution having expertise in cluster development. An IA is assigned for development of a cluster. They work at gross-root level in implementation of cluster. They are appointed by the Nodal Agency. An IA will appoint a Cluster Development Executive who will implement the cluster project as per DPR.
- 11. Implementing Agency They are non-government organizations (NGOs) or institutions of government or Panchayati Raj institution having expertise in cluster development. An IA is assigned for development of a cluster. They work at gross-root level in implementation of cluster. They are appointed by the Nodal Agency. An IA will appoint a Cluster Development Executive who will implement the cluster project as per DPR.
- 12. Conclusion The SFURTI scheme aims to uplift the traditional industry. Clusters developed in the SFURTI scheme are established with a comprehensive business plan looking at future sustainability growth. We at SF Consultants help in growing clusters by guiding NAs and IAs with our technical competencies. Our group of professionals helps in developing commercial enterprise plans, providing technical support and steerage in the proper development and execution of a DPR for cluster development.