SFURTI Scheme Explained For UPSC Students

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SFURTI Scheme A Short Explanation

• Explanation of Scheme of Funds for Regeneration
  of Traditional Industry by Ministry of MSME of
  Government of India

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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.
AIMS AND OBJECTIVES
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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.
idea of SFURTI Scheme
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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.
What is a Cluster?
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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
How much amount is spent on Cluster?
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
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The Functionaries and Agencies Under SFURTI
The scheme is implemented by the assistance of
nationally recognized well established agencies
which have experience in cluster development
program.
Scheme Steering Committee
Technical Agency
Nodal Agency
Implementing Agency
Working Committee
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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.
Scheme Steering Committee
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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.
Nodal Agency
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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.
Technical Agency
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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.
Implementing Agency
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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.
Implementing Agency
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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.