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Grant MSME

SFURTI — Traditional Industry Cluster

Up to ₹3 Cr per cluster for traditional industries

Maximum benefit
₹3 Cr
Typical processing
6–12 months from CDS to first fund release; entire project spans 24–36 months
Apply on official portal

About this scheme

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) supports the development of clusters for traditional industries — khadi, coir, village industries, handloom, and handicrafts. The scheme funds Common Facility Centres, training, design intervention, and marketing infrastructure for clusters of 100+ artisans. Each cluster project gets up to Rs. 3 crore (heritage clusters) or Rs. 5 crore (major clusters).

What you get

  • Hard Intervention: up to Rs. 2 crore (heritage) / Rs. 5 crore (major) for Common Facility Centre, machinery, infrastructure
  • Soft Intervention: up to Rs. 25 lakh for training, design, market linkage, brand building
  • Thematic Intervention: support for export, e-commerce, or specialised marketing
  • 90% Government contribution; 10% beneficiary contribution
  • 100% Government funding for North-East, J&K, and aspirational district clusters
  • Common branding and marketing under nationally recognised cluster identity

Who qualifies

A registered Special Purpose Vehicle (SPV) — typically a Section 8 company, cooperative society, or registered trust — representing a cluster of at least 100 artisans (or 50 for North-East/J&K). The cluster must focus on traditional crafts: textiles (handloom, khadi), coir products, handicrafts, village industries (food, herbal, leather, bamboo). The SPV must have a Cluster Diagnostic Study (CDS) prepared by an empanelled Implementing Agency.

Industries (NIC divisions)
TextilesApparelLeatherWood productsFurnitureOther manufacturing
Business types
Section 8 Companies

Available across India (central scheme).

How to apply

  1. 1Form an SPV (Section 8 company / cooperative / trust) with 100+ artisans
  2. 2Engage an empanelled Implementing Agency (state KVIC, NSIC, COIR Board, etc.) for Cluster Diagnostic Study
  3. 3CDS identifies cluster needs, project costs, and intervention plan
  4. 4IA submits the proposal to the Scheme Steering Committee at Ministry level
  5. 5On approval, funds released in tranches over the project period (typically 3 years)
  6. 6IA implements the project; SPV takes operational control post-implementation

Key terms and conditions

  • 10% beneficiary contribution (mandatory) — typically pooled from artisan members
  • Project span: typically 24–36 months
  • Funds released in 4 tranches based on project milestones
  • Post-project sustainability plan is mandatory — SPV must run the CFC after IA exit
  • Annual progress report to MoMSME for 5 years post-completion

What disqualifies you

  • Individual artisans cannot apply directly — must form SPV
  • Non-traditional industries excluded
  • Same cluster cannot receive SFURTI funding twice within 10 years
  • SPV must demonstrate genuine artisan membership — fake clusters are screened out
  • Diagnostic study must be done by empanelled IA, not self-prepared

Documents typically required

  • SPV registration
  • DPR
  • Cluster member list
  • Land documents

Frequently asked questions

Q. Can I as an individual artisan apply to SFURTI?
No. SFURTI is a cluster scheme. You need to be part of an SPV with at least 100 artisans (50 for NE/J&K).
Q. What if my cluster has 60 artisans — can I still apply?
For most states, you need 100. For North-East states and J&K, 50 is the minimum. If you fall short, consider merging with a nearby cluster.
Q. How long does the entire SFURTI project take?
From SPV formation to CFC operational: typically 2.5–3 years. The CFC then operates indefinitely under SPV management.

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.