The SFURTI Scheme was launched by the Ministry of MSME to focus more on the development of clusters of Traditional Industries across the country. It aims to create a market-driven, more competitive traditional industry. It is implemented by Khadi and Village Industries Commission (KVIC) at the National Level.

Following article discusses the SFURTI scheme in more detail.

SFURTI: Objectives

• Developing clusters of traditional industries in the country over a period of five years.
• Making the traditional industries more competitive, market-driven, productive and profitable.
• Strengthening the local governance system of industry clusters, with active participation of the local stakeholders.
• Building up innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships.
• Gradually replicating similar models of cluster-based regenerated traditional industries in other parts of the country.

SFURTI: Salient Features

• Khadi & Village Industries Commission (KVIC) is the nodal agency for Khadi and Village Industry clusters
• Coir Board (CB) shall be the nodal agency for Coir based clusters.
• SFURTI would cover three types of interventions, i.e., ‘soft interventions’, ‘hard interventions’ and ‘thematic interventions’.
  • Hard Interventions include creation of Common Facility Centers (CFCs), Raw material banks (RMBs), Up-gradation of production infrastructure, etc.
  • Soft Interventions include counselling, trust building, skill development and capacity building.
  • Thematic interventions include Brand building and promotion campaigns, New media marketing, e-Commerce initiatives, Innovation, Research & development initiatives and Developing institutional linkages with the existing & proposed clusters.

SFURTI: Beneficiaries

• 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 and policy makers, directly engaged in traditional industries.

SFURTI: Who can Apply

• Non-Government organizations (NGOs)
• Institutions of the Central and State Governments
• Semi-Government institutions
• Field functionaries of State and Central Govt.
• Panchayati Raj institutions (PRIs)

SFURTI: How to Apply?

• Eligible agencies/organizations can submit their proposal to the State Office of KVIC.
• Proposal is scrutinized at State and Zonal Level before submitting to the Scheme Steering Committee for approval.

SFURTI: Implementation Methods

• Web-Based Project Management System (PMS)
• Identification of tentative list of clusters
• Engagement and appointment of Technical Agencies (TAs)
• Approval from Scheme Steering Committee (SSC)
• Prerequisites for Release of Funds
• Release of Funds to Nodal Agencies (NAs)
• Release of Funds to Implementing Agency (IA)

FAQs

Question. What is the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?

Question. What are the objectives of the SFURTI scheme?

Question. What are the types of industries covered under SFURTI?

Question. What kind of financial assistance is provided under the SFURTI scheme?

Question. How does SFURTI contribute to the socio-economic development of rural areas?

MCQs

1. What is the main aim of the SFURTI scheme?

A) Promoting large-scale industries

B) Regenerating traditional industries and improving livelihoods of artisans

C) Supporting only export-oriented industries

D) Encouraging industrial automation

2. Which ministry is responsible for implementing the SFURTI scheme?

A) Ministry of Finance

B) Ministry of MSME

C) Ministry of Rural Development

D) Ministry of Industry and Commerce

3. Which of the following industries is NOT covered under the SFURTI scheme?

A) Handlooms

B) Khadi Industries

C) IT and software industries

D) Handicrafts

4. What is the primary objective of providing common facility centers under SFURTI?

A) To provide marketing infrastructure for international sales

B) To improve the quality and efficiency of production

C) To reduce the cost of raw materials

D) To create new industries

5. How does SFURTI contribute to employment generation in rural areas?

A) By providing grants to large-scale industries

B) By promoting urban industries in rural areas

C) By improving the income and employment opportunities of artisans and small entrepreneurs

D) By offering jobs only to government employees

GS Mains Questions and Model Answers

Q1: Discuss the role of the SFURTI scheme in promoting traditional industries in India.

Answer: The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) plays a crucial role in promoting traditional industries in India by providing the necessary support to improve the competitiveness and sustainability of these industries. With a focus on handicrafts, handlooms, and khadi industries, SFURTI aims to enhance the productivity, quality, and marketability of traditional products. The scheme supports capacity building, training, and the creation of common facility centers, enabling artisans and small entrepreneurs to increase their output and improve their income.

Q2: Analyze the socio-economic impact of the SFURTI scheme on rural livelihoods.

Answer: The SFURTI scheme has had a significant socio-economic impact on rural livelihoods by promoting sustainable income opportunities for artisans and small entrepreneurs engaged in traditional industries. By providing financial assistance for infrastructure, product development, and capacity building, SFURTI helps enhance the productivity and quality of traditional goods, which, in turn, boosts the income levels of rural artisans. This leads to improved livelihoods and reduces rural poverty.

Q3: Examine the challenges faced by the SFURTI scheme in achieving its objectives.

Answer: While the SFURTI scheme has had positive outcomes, there are several challenges that have hindered its full potential. One of the primary challenges is the lack of adequate awareness and outreach, particularly in remote areas where traditional industries are concentrated. Many artisans and small entrepreneurs are unaware of the opportunities provided by SFURTI, which limits the scheme's impact. Effective outreach and capacity building at the grassroots level are essential to overcome this challenge.

Previous Year Questions on  Revamped Scheme Of Fund for Regeneration Of Traditional Industries

1. UPSC CSE 2021

Question: What is the primary objective of the SFURTI scheme?

Answer: The primary objective of the SFURTI scheme is to regenerate traditional industries by providing support for capacity building, infrastructure development, and better market access, which ultimately enhances the livelihoods of artisans and small entrepreneurs.

2. UPSC CSE 2020

Question: Discuss the challenges faced by traditional industries in India and how the SFURTI scheme aims to address them.

Answer: Traditional industries in India face challenges such as lack of infrastructure, limited market access, and low productivity. The SFURTI scheme aims to address these challenges by providing financial support for infrastructure, skill development, and the creation of marketing linkages, thereby improving the competitiveness and sustainability of these industries.