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Artisans β€’ Cluster β€’ Rural

SFURTI Scheme

Modernizing Traditional Artisan Clusters

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) aims to organize traditional industries and artisans into clusters for competitiveness.

β‚Ή5 Cr
Max Grant (Major)
90%
Govt. Contribution
Group
Development
KVIC
Nodal Agency
πŸ“… January 10, 2026⏱️ 7 min readπŸ‘€ Ewolyn Team

India's traditional industriesβ€”like Khadi, village industries, and coirβ€”are rich in heritage but often lack modern market access. SFURTI is a cluster-based scheme to make these industries productive and sustainable.

It focuses on grouping artisans together and providing them with Common Facility Centers (CFCs), modern machinery, and training.

The goal is to provide sustainable employment for rural artisans and help them reach national and international consumers.

β€œHeritage is our strength; technology is our bridge to the future. SFURTI empowers the hands that hold our traditions.”

What is the SFURTI Scheme?

SFURTI provides grants for infrastructure and capability building. It is NOT for individual artisans but for groups of artisans organized as a Special Purpose Vehicle (SPV).

It covers 'Soft Interventions' (training, exposure visits) and 'Hard Interventions' (machinery, CFCs, raw material banks).

The government contributes up to 90% of the project cost, making it one of the most generous grant schemes in India.

Who is Eligible for the SFURTI Scheme?

Who can initiate a SFURTI cluster?

1

NGOs

Non-Governmental Organizations with experience in rural development.

2

Statutory Bodies

KVIC, KVIB, Coir Board, and State Government Agencies.

3

PRIs

Panchayati Raj Institutions involved in artisan welfare.

ℹ️ Eligibility Checklist:

  • β€’Minimum 500 artisans for Major clusters; 250 for Regular clusters.
  • β€’Provision of land for the CFC by the IA (Implementing Agency).
  • β€’Minimum 3 years of experience in the specific artisan sector.

What Types of Projects are Covered?

Sectors covered:

🐝

Honey & Beekeeping

Cluster and processing units for forest-based honey.

πŸŽ‹

Bamboo Products

Modern furniture and utility items from bamboo.

🧢

Coir & Jute

Traditional fiber products with modern designs.

🏺

Handicrafts

Metal craft, pottery, woodcraft, and textiles.

Key Benefits

πŸ‘₯

Regular Cluster

β‚Ή2.5 Cr

For clusters with 250 to 500 artisans.

🎁

Grants

90%

Government covers almost the entire cost of the project.

Lending Institutions

Various financial institutions provide loans under this scheme:

  • βœ“Ministry of MSME
  • βœ“KVIC
  • βœ“KVIB
  • βœ“Coir Board

How to Apply? (Step-by-Step)

1

Cluster Mapping

Identifying a region with high density of specific artisans.

Start a cluster proposal β†’
2

DSR Preparation

Submitting a Diagnostic Study Report to the nodal agency.

3

DPR & Approval

Detailed Project Report evaluation by the Scheme Steering Committee (SSC).

4

Implementation

Setting up the CFC and training the artisans.

ℹ️ Approval Timeline: 12-18 months for full setup.

Documents Required

πŸ“„NGO/IA Registration Documents
πŸ“„List of Artisans with Aadhaar
πŸ“„Land Records for CFC
πŸ“„Bye-laws of the SPV
πŸ“„Detailed Technical Drawings for CFC

Note: Sustainability after the 3-year intervention period is the key criteria for approval.

Common Mistakes Applicants Make

⚠️ Ghost Artisans

Providing a list of artisans who are not actually involved in the trade.

⚠️ Lack of Market Link

Building a factory without having a plan to sell the final products.

Frequently Asked Questions

Can an individual apply?

No, SFURTI is strictly for groups (clusters) of artisans.

Do artisans have to pay?

Usually, artisans contribute a small amount to the SPV to ensure ownership.

Conclusion

SFURTI is changing the face of rural India by turning traditional skills into professional enterprises.

We specialize in the end-to-end management of SFURTI projectsβ€”from artisan mobilization and DSR preparation to SPV formation and CFC design.

Revive Your Traditional Industry

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