The SFURTI scheme (Scheme of Fund for Regeneration of Traditional Industries) is a Ministry of MSME grant for artisan clusters. It funds shared workshops, machinery, training, design, and marketing. A cluster can get up to ₹2.5 crore (up to 500 artisans) or ₹5 crore (more than 500 artisans). Individual artisans cannot apply alone.
What Is the SFURTI Scheme?
The Ministry of MSME launched the SFURTI scheme in 2005 to turn scattered traditional artisans into a funded cluster with shared tools and shared buyers. Its main facility is a Common Facility Center (CFC): a production area with machines, a raw-material store, a training room, a display and sales area, and offices for managing the cluster.
| Point | Detail |
| Full form | Scheme of Fund for Regeneration of Traditional Industries |
| Run by | Ministry of MSME, Government of India |
| Started | 2005; revamped in 2014-15 |
| Who receives the grant | A cluster, through an Implementing Agency (IA) and an artisan-owned Special Purpose Vehicle (SPV) |
| Trades covered | Khadi, coir, handloom, handicrafts, bamboo, pottery, leather, carpet weaving, tea, agro-processing and more |
| Official portal | sfurti.msme.gov.in |
SFURTI Scheme 2026: How Many Clusters and Artisans So Far?
The newest official SFURTI figures come from a Lok Sabha reply by Minister of State Shobha Karandlaje on 12 March 2026.
- 513 clusters approved since 2015-16.
- ₹1,332.95 crore of government assistance committed.
- 378 clusters functional; 135 still being set up.
- About 3.03 lakh artisans expected to benefit.
In February 2021, the ministry reported 371 funded clusters covering 2.18 lakh artisans in 248 districts, with ₹888 crore of assistance.
How Much Funding Does the SFURTI Scheme Give per Cluster?
The SFURTI scheme caps government assistance at ₹2.5 crore for up to 500 artisans and ₹5 crore for more than 500.
| Cluster type | Artisans | Maximum assistance |
| Regular cluster | Up to 500 | ₹2.5 crore |
| Major cluster | More than 500 | ₹5 crore |
The Sitalpati cluster in Goalpara, Assam (550 artisans) was approved for ₹94.38 lakh, under one-fifth of the ₹5 crore cap. Two other Goalpara clusters were approved for ₹117.84 lakh and ₹162.59 lakh.
Why do some pages still show ₹8 crore or ₹1.5 crore?
They copy the 2015 guidelines (Mini ₹1.5 crore, Major ₹3 crore, Heritage ₹8 crore). Even the government’s older scheme summary still carries an “₹8 crore” line above a table that says ₹5 crore. The 9 September 2022 guidelines use two types and a ₹5 crore cap.
How Is SFURTI Funding Split Between Government and Agency?
Under the SFURTI scheme, the government pays 100% of soft items and 90% of hard items, and the Implementing Agency adds 10% of hard costs in cash.
| Item | Government pays | Limit | Agency pays |
| Soft work | 100% | 10% of hard cost or ₹25 lakh, whichever is less | Nil |
| Hard work (CFC, machines, raw material bank) | 90% | Within the ₹2.5 / ₹5 crore cap | 10% in cash (5% in North-East, J&K, hill states) |
| Technical Agency’s fee | 100% | 8% of hard cost or ₹30 lakh, whichever is less | Nil |
| Implementing Agency / SPV cost, including the Cluster Development Executive | 100% | 8% of hard cost or ₹20 lakh, whichever is less | Nil |
The Cluster Development Executive’s pay and related costs are covered for three years. Money arrives in installments, with about half of each part first. The ministry releases it only after the agency’s own share sits in a joint account.
What Does the SFURTI Scheme Pay For? Soft, Hard and Thematic Work
The SFURTI scheme funds three kinds of work, and each has different rules on who pays.
| Type | What it means | Examples |
| Soft | Building people’s skills and market reach | Awareness and counseling, trust building, skill training, exposure visits, design and product development, market promotion, workshops |
| Hard | Building physical facilities | Common Facility Center, raw material bank, upgraded production space, tools and technology, warehouse, training center, processing center |
| Thematic | Sector-wide work across several clusters | Brand building, new-media marketing, e-commerce, innovation |
Who Is Eligible for the SFURTI Scheme?
SFURTI scheme eligibility has three layers: an Implementing Agency, an artisan-owned SPV, and a cluster of existing artisans.
- Implementing Agency (IA): NGOs with cluster or artisan experience, cooperatives, public trusts, producer companies, Section 8 companies, Panchayati Raj Institutions, and government or semi-government bodies. Nodal agencies choose IAs based on regional reputation and grassroots experience. One IA normally serves one cluster.
- SPV: A society, cooperative, producer company, Section 8 company, or trust, with artisans holding the majority voice. At least 90% of the SPV’s surplus must go to artisans; the IA may take up to 10%.
- The cluster: Existing artisans in a traditional industry. New trainees alone do not qualify. The cluster also needs land for the CFC and a Detailed Project Report (DPR) that shows the plan can sustain itself.
How Are SFURTI Clusters Selected?
The government’s scheme summary says SFURTI clusters are chosen based on geography, trade, and growth potential.
- Size: Around 500 beneficiary families (artisans, micro-enterprises, raw-material suppliers, traders, service providers).
- Location: Within one or two revenue sub-divisions of a district, or in neighboring districts.
- Trade: Khadi, coir and village industries, including leather and pottery, are the core sectors. Ministry cluster lists also include handloom, handicrafts, bamboo, tea, and others.
- Potential: The cluster must show room to grow production and jobs.
- Spread: At least 10% of clusters should be in the North-East.
Who Does What in the SFURTI Scheme?
Six bodies share the work in the SFURTI scheme, each with a specific role.
| Body | Role |
| Ministry of MSME | Sets policy and oversees the scheme |
| Scheme Steering Committee (SSC) | Approves projects; chaired by the Secretary, MSME |
| Nodal Agency | Takes proposals and selects Implementing Agencies. KVIC handles khadi and village industries; the Coir Board handles coir. In Assam, the Indian Institute of Entrepreneurship (IIE), Guwahati acts as nodal agency. |
| Technical Agency | A national institution with cluster experience that guides and supports each cluster |
| Implementing Agency (IA) | Runs the project on the ground. One IA per cluster. |
| SPV | The artisans’ own legal body that runs the cluster after setup |
How to Apply for the SFURTI Scheme?
To apply for the SFURTI scheme, an Implementing Agency submits a cluster proposal through a nodal agency. Artisans cannot apply one by one.
How to Apply for the SFURTI Scheme?
- Visit the Official SFURTI Website: Go to the https://sfurti.msme.gov.in/ and review the scheme guidelines and application requirements.
- Identify the Cluster: Select a traditional industry cluster and collect details about artisans, their skills, products, and location.
- Select an Implementing Agency: Identify an eligible NGO, cooperative, or other organisation to manage the project.
- Contact the Nodal Agency: Approach KVIC, the Coir Board, or another designated nodal agency based on the industry.
- Conduct a Cluster Assessment: Evaluate the artisans' needs, available resources, production capacity, and market opportunities.
- Prepare the Detailed Project Report (DPR): Develop a project report covering objectives, budget, infrastructure, training, and expected outcomes.
- Submit the Project Proposal: Submit the DPR and required documents to the concerned nodal agency for evaluation.
- Get Project Approval: The proposal is reviewed by the relevant authorities and the Scheme Steering Committee.
- Form the SPV: Establish a Special Purpose Vehicle (SPV) to manage cluster activities and the Common Facility Centre (CFC), as required.
- Implement the Project: After approval and completion of formalities, receive the sanctioned funds in instalments and start project activities.
The ministry has not published a single-document checklist or a fixed approval timeline. The DPR is the core document; ask the nodal agency for its current format.
Real Example: Sitalpati Cluster, Goalpara, Assam
The Sitalpati cluster in Goalpara shows how the SFURTI scheme can turn a poorly paid craft into products for a wider range of buyers.
- The starting point: In a feature from around 2015, a Goalpara weaver said two women working a full day could finish one mat, and each earned ₹35. Intermediaries collected the mats and sold them locally.
- The cluster: Government lists show 550 artisans, a project cost of ₹98.28 lakh, and approved assistance of ₹94.38 lakh. The Indian Institute of Entrepreneurship, Guwahati, is the nodal agency.
- New products: Handbags, purses and laptop bags made from sitalpati.
- The result: The ministry’s release said artisan income rose through new products and market links. Union Minister Nitin Gadkari inaugurated the cluster by video link.
The artisans moved from selling low-priced mats through middlemen to making products that reach wider markets.
How Much Do SFURTI Clusters Earn?
Evidence suggests the SFURTI scheme can raise artisan income, but the government has not published a national average.
- Indian Micro Enterprises Development Foundation (IMEDF), part of Development Alternatives: Reports 21 clusters reaching over 14,000 farmers and artisans, 6,000 of them women, with income gains of ₹3,500 to ₹8,000 a month per entrepreneur. An implementing organisation reports this itself, so treat it as program-level evidence, not a national average.
- Odisha stone-carving study: A study of 87 artisans found that SFURTI artisans had higher average income, wages, and years of training than non-SFURTI artisans.
Income varies by craft, location, product, market access, and how well the cluster is run.
What Are the Goals of the SFURTI Scheme, and Who Benefits?
The SFURTI scheme aims to help traditional industries earn steadily, not just survive, and it benefits more than just artisans.
Goals:
- Organise artisans into clusters so they can compete and sustain themselves.
- Create steady jobs for artisans and rural entrepreneurs.
- Improve products through new designs, better packaging, and better marketing spaces.
- Build skills through training and exposure visits.
- Provide artisans with shared facilities and tools they cannot afford on their own.
- Shift from “make, then hope to sell” to “know the buyer, then make”: brand, price, position, and sell online.
- Build multi-product clusters so one product’s bad season doesn’t sink the cluster.
Who benefits: artisans, workers, raw-material suppliers, machinery makers, and small entrepreneurs; business development service providers; artisan guilds, cooperatives, self-help groups, and enterprise associations; and agencies and policymakers working in traditional industries.
SFURTI Scheme Myths vs Facts
Five SFURTI claims circulate online that the official record does not support.
| Myth | Fact |
| SFURTI is a loan to artisans. | It is a grant to clusters. Only the IA’s 10% on hard items is its own cash. |
| The maximum is ₹8 or ₹10 crore. | ₹8 crore was the old Heritage cap. The 2022 guidelines cap it at ₹5 crore. |
| 364 SFURTI clusters are complete. | 364 is the completed project count of a different scheme, MSE-CDP. SFURTI has 513 approved clusters. |
| One artisan can apply directly. | Only an IA and an SPV can apply for a cluster. |
| Every cluster gets the full cap. | Sitalpati, with 550 artisans, was approved for ₹94.38 lakh. |
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Apply via PrabhaavFrequently Asked Questions
What is the full form of SFURTI?
Scheme of Fund for Regeneration of Traditional Industries. The Ministry of MSME runs it.
How much money does the SFURTI scheme give?
Up to ₹2.5 crore for a regular cluster (up to 500 artisans) and up to ₹5 crore for a major cluster (more than 500 artisans). Actual approvals are often lower.
Can an individual artisan apply for the SFURTI scheme?
No. An artisan can join a cluster, but the grant goes to the cluster through an IA and an SPV.
Can an NGO apply under the SFURTI scheme?
Yes. An NGO with cluster or artisan experience can be the Implementing Agency, as can a cooperative, trust, producer company, Section 8 company, Panchayati Raj Institution, or government body.
Is the SFURTI scheme a loan or a grant?
A grant. The government pays 90% of hard items and 100% of soft items. The IA adds 10% in cash on hard items (5% in North-East, J&K, and hill states).
Author
Aabha Garg
A Content Strategist at NGOExperts, who focuses on NGO registration, 12A and 80G registration, FCRA compliance, income tax filing for non-profits, and CSR funding guidelines in India. I research and write our compliance guides in collaboration with our in-house Chartered Accountants and Company Secretaries, so every article reflects current tax and regulatory requirements for the NGO and non-profit sector.
Written by Aabha Garg. Last updated on November 10, 2026
