Scheme of Fund for Regeneration of Traditional Industries

Description
“Scheme of Fund for Regeneration of Traditional Industries SFURTI ” is a programme of the Ministry of Micro Small and Medium Enterprises, Government of India and was launched in the year 2005 with the view to make the traditional industries more competitive, market-driven, productive, profitable and capable of providing sustainable employment for traditional industry artisans and rural entrepreneurs. The Coir Board is the Nodal Agency for the implementation of the scheme. The scheme is being implemented by the Board through the Implementing Agencies engaged by the Board for each cluster. This scheme focuses on physical infrastructure creation, technology upgradation, training, product development, innovation, design interventions, marketability, improved packaging and marketing infrastructure with the aim of improving artisanal income. Objectives of the Scheme: 1. To organize the traditional industries and artisans into collectives to make them competitive and provide support for their long-term sustainability and economy of scale. 1. To provide sustained employment for traditional industry artisans and producers. 1. To enhance the marketability of products of such clusters and collectives by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure. 1. To equip traditional artisans and producers of the associated clusters with improved skills and capabilities through training and exposure visits. 1. To promote collective business enterprises of traditional artisans and producers. 1. To make provision for common facilities and improved tools and equipment for artisans and producers to promote optimum utilization of infrastructure facilities. 1. To provide for the setting up of a multi-product cluster with an integrated value chain and a strong market-driven approach for viability and long-term sustainability of the cluster. 1. To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities, respond to them in a coherent manner and ensure equitable distribution of surplus generated by the collective among all the artisans and producers. 1. To promote traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, to gradually replicate similar models of collective/cluster-based traditional industries. 1. To focus on penetrating uncovered districts, aspirational districts, etc. for setting up collectives covering traditional industries with a special focus on endangered arts and crafts. 1. To support traditional artisans with a special focus on disadvantaged communities like SCs, STs, women, etc. 1. To ensure convergence from the design stage with each activity of the cluster formation and operations thereof. 1. To identify and understand the collective/cluster& 39;s target customers, understand their needs and aspirations and develop the present product lines to meet the requirements. Substantial focus should be on the buyer segment that places a premium on natural, eco-friendly, ethically sourced and the uniqueness of the Khadi and Village and Industries products. 1. To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value. 1. To make a paradigm shift from a supply-driven selling model to a market-driven model with the right branding, focus product mix and correct positioning and right pricing to make the offering holistic and optimal for each of the focus categories. 1. To tap E-Commerce as a major marketing channel and devise a quick strategy to make its presence felt in the E-Retail space. 1. To make substantial investments in the area of product design and quality improvement, Research and Development and emerging technologies based on the market trends with an eye to standardizing the quality of inputs and processes so that the products meet the quality benchmarks. 1. To extensively promote the latest technological advancements in order to take local to global in line with the call for & 39;Atma Nirbhar Bharat& 39;. 1. To establish collectives with a special focus on the adoption of Industry 4.0, blockchain for traceability, digitization of turnover and artisan income, digitization of training modules, effluent treatment, fire safety, green energy, knowledge repositories, etc. 1. To encourage and promote Green and sustainable products and processes. Project Interventions: The Scheme covers three types of interventions namely Soft Interventions, Hard Interventions and Thematic interventions. - Soft Interventions: General awareness, counselling, motivation and trust building, Skill development and capacity building, Institution development, Exposure visits, Market promotion initiatives, Design and product development, Participation in seminars, workshops and training programmes on technology up-gradation etc. - Hard Interventions: Creation of facilities such as Multiple facilities for multiple products and packaging wherever needed, Common Facility centres CFCs , Raw Material Banks RMBs , Up-gradation of production infrastructure, Tools and technology up-gradation, Warehousing facility, Training Centre, Value addition and processing Centre. - Thematic Interventions: Cross-cutting thematic interventions at the sector level including several clusters in the same sector with emphasis on both domestic and international markets. These will primarily include Brand-building and promotion campaigns, new media marketing, e-commerce initiatives and innovation. Institutional Arrangement: - Scheme Steering Committee SSC - Nodal Agencies NAs - Technical Agency TA - Implementing Agency IA Implementation Methodology: - Web-Based Project Management System PMS - Identification of a tentative list of clusters - Engagement and appointment of Technical Agencies TAs - Approval from the Scheme Steering Committee SSC - Pre-requisites for Release of Funds - Release of Funds to Nodal Agencies NAs - Release of Funds to Implementing Agency IA

Benefits
• * 90%:10% in the case of the North Eastern Region (NER), UT of J&K and hill states.

Eligibility Criteria
1. Non-Government organizations (NGOs), institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), Private sector by forming cluster-specific SPVs, Corporates and Corporate Responsibility (CSR) foundations with expertise to undertake cluster development.
2. > **Criteria for Selection of Clusters:**
3. The Selection of Clusters will be based on their geographical concentration which would be around 500 beneficiary families of artisans/micro-enterprises, suppliers of raw materials, traders, service providers, etc., located within one or two revenue subdivisions in a District (or in contiguous Districts.)
4. The potential for growth in production and generation of employment opportunities will also be considered in selecting clusters under SFURTI.
5. The geographical distribution of the clusters throughout the country, with at least 10% located in the North Eastern region will also be kept in view while selecting Clusters.

Application Process
Step 1: Instructions For Filling Concept Scorecard
Online

Instructions For Filling Concept Scorecard

Required Documents
• Certificate of Registration of the organization
• Endorsement from Promoting Organisation (if applicable)
• Establishment date & summary of registered organization
• List of Governing Body/Board of Directors
• Details of Areas of activity
• List of organizations with which formal MoUs/linkages exist
• Annual Audited statement & IT returns for the last 3 years
• Details of Recognitions & Awards
• Details of Team/Staff with cluster experience
• Bank account details
• Any other document, as required

Frequently Asked Questions
Q: What is SFURTI?
A: To make the traditional industries more productive and competitive and facilitating their sustainable development, the Govt. of India announced in 2005-06, setting up of a fund for regeneration of traditional industries. Pursuant to this announcement, a Central Sector Scheme titled the "Scheme of Fund for Regeneration of Traditional Industries (SFURTI)" was launched.

Q: Which ministry is implementing this scheme?
A: The Ministry of Micro, Small & Medium Enterprises is implementing the scheme with a view to organizing traditional industries and artisans into clusters to make them competitive and increase their income.

Q: What are the objectives of SFURTI?
A: To develop clusters of traditional industries in the country over a period of five years.
To make traditional industries more competitive, market-driven, productive, and profitable.
To strengthen the cluster governance systems with the active participation of the stakeholders.
To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence, and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.

Q: Who can apply for SFURTI?
A: Following is the list of organisations/institutions that can apply for SFRUTI:
Non-Government Organizations (NGOs)
Institutions of the Central and State Governments
Semi-Government institutions
Field functionaries of State and Central Government
Panchayati Raj Institutions (PRIs)

Q: What is the duration of Project?
A: The time frame for implementation of Project will be 3 years.

Q: How many types of Interventions are covered under Scheme?
A: The Scheme covers three types of interventions: Soft Interventions, Hard Intervention & Thematic Interventions

Q: What the activities covered under Soft Intervention?
A: Soft Interventions under the project would consist of activities such as
i. General Awareness, counseling, motivation and Trust building
ii. Skill development and Capacity Building
iii. Institutional development
iv. Exposure visits
v. Market Promotion initiatives
vi. Design and Product Development
vii. Participation in seminars, workshops and training programmes on
technology up-gradations, etc.

Q: What the facilities covered under Hard Intervention?
A: Hard interventions will include creation of following facilities:
i. Creation of Common Facility Centres (CFCs)
ii. Raw Material Banks (RMBs)
iii. Up-gradation of Production Infrastructure
iv. Tools and Technological up-gradation such as Charkha upgradation, tool-kits distribution, etc
v. Warehousing Facility
vi. Training Centre
vii. Value addition and processing centre
Note: The assistance for raw material bank (RMB) shall be leveraged with financial institution for enhanced credit.

Q: Whether the cost of land is included in the project cost?
A: No. Land should be owned by Implementing Agency.

Q: Who can play the role of Implementing Agencies (I.A.)?
A: Implementing Agencies (IAs) would be non-Governmental Organisations (NGOs), Institutions of the Central and State Governments and Semi-Government Institutions, field functionaries of State & Central Government Panchayati Raj Institutions (PRIs), etc suitable expertise to undertake cluster development. One IA may normally be assigned only one cluster (unless it is an agency with State-wide coverage). The selection of IAs, based on their regional reputation and experience of working at the grass-roots level, will be done by the Nodal Agencies (NAs), on the basis of transparent criteria. Private sector participation shall also be encouraged for the
implementation of the cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs. Corporates and Corporate Social Responsibility (CSR) foundations with expertise in cluster development will be encouraged to participate as IAs.

Q: Can implementing agencies take up more than one traditional industry?
A: No. One Implementing Agency may normally be assigned only one cluster (unless it is an
agency with State-wide coverage).

Q: Who can play the role of Technical Agencies (T.A.)?
A: Established national/ regional level institutions, with proven expertise in artisanal and small enterprise cluster development shall be empanelled as Technical Agencies by Nodal Agency (N.A.) only can play the role of Technical Agency (T.A).

Q: What is the definition of “Traditional Industry”?
A: Broadly, ,,traditional industry" means an activity which produces marketable products, using locally available raw materials and skills and indigenous technology. Traditional Industry Cluster, in the Context of this document, refers to a geographical concentration of a sizable number of artisans or micro-enterprises, suppliers of raw materials, traders, service providers, etc. producing, processing, and servicing the same or similar types of products and facing common opportunities and threats

Q: What is Coir?
A: Coir is generally referred to as "Golden Fibre", which is a bye-product of coconut, extracted from the coconut husk.

Q: What is the definition of “Traditional Industry”?
A: Broadly, "traditional industry" means an activity which produces marketable products, using
locally available raw material and skills and indigenous technology. Traditional Industry Cluster,
in the context of this document, refers to a geographical concentration of a sizable number of artisans or micro enterprises, suppliers of raw materials, traders, service providers, etc. producing, processing and servicing the same or similar types of products and facing common opportunities and threats.

Q: What is a cluster?
A: Clusters are defined as "geographical concentrations of inter-connected enterprises and associated institutions that face common challenges and opportunities". This definition highlights two essential features of clusters: they consist of a critical mass of enterprises located in geographical proximity to each other and enterprises within them share many common features.

Q: What is the CFC?
A: Common Facility Centre (CFC) is one of the Components in Hard Intervention where which
artisans/end users can utilize the machineries installed thereon and manufacture coir based
value added products. CFC can also be used as a warehouse for storing and maintaining
finished products.

Q: How to apply for SFRUTI?
A: The above eligible agency/organization has to submit the proposal online through the SFURTI Portal (https://sfurti.msme.gov.in/SFURTI/SignUp.aspx) and the same is to be scrutinized at the State Level and Zonal Level before submitting it to the Scheme Steering Committee for approval.