Clusters have gained increasing prominence in debates on economic development in recent years. Cluster initiatives are also considered to be efficient policy instruments in that they allow for a concentration of resources and funding in targeted areas with a high growth and development potential that can spread beyond the target locations. With a view to make the traditional industries clusters more productive and competitive and facilitating their sustainable development, the Govt. of India first announced in 2005-06, setting up of a fund for regeneration of traditional industries, with an initial allocation of Rs 100 crore. Pursuant to this announcement, a Central Sector Scheme titled the "Scheme of Fund for Regeneration of Traditional Industries (SFURTI)" was approved to be implemented under the Ministry of Micro, Small and Medium Enterprises (MSME). After encouraging results from XI plan, union government, during XII plan period, envisaged to develop 800 clusters across India under Revamped SFURTI Scheme. In the Budget announcement made by Finance Minister for FY 2013- 14, 800 clusters of khadi, village industries and coir are to be developed during XII Plan with an outlay of Rs 850 crore covering 4 (four) lakh artisans.

The objectives of the Scheme is mainly to organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale; provide sustained employment for traditional industry artisans and rural entrepreneurs; enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also improvement of marketing infrastructure.

In addition, the Scheme aims to equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits, make provision for common facilities and improved tools and equipments for artisans; strengthen the cluster governance systems with the active participation of the stakeholders so that they are able to gauge the. emerging challenges and opportunities and respond to them in a coherent manner and to build up innovated 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.

The scheme has provision for Soft Interventions including skill training, capacity building, design development, etc. Hard Interventions including Common Facility Centres, Raw Material Banks (RMB), training centres, etc. and cross cutting and Thematic Interventions which include brand building & promotion, news media marketing, e-commerce, innovation, R&D initiatives and developing linkages between clusters.

Indian Institute of Entrepreneurship (IIE) is one of the eight organisations in the country that is bestowed with the responsibility as Nodal Agency by Ministry of MSME. The Ministry, MSME have approved a total of forty three (43) clusters under Revamped SFURTI from North Eastern and Eastern Region during the FY 2015-16, 2016-17, 2018-19 and 2019-20. These clusters are implemented by different implementing agencies working on the grass-root level which are under the technical support of well-known institutes like EPCH, IL&FS Clusters, Margdarshak, Don Bosco University, ICCSPL, SeSTA, NH Consultant, Varhad FCS Private Limited, Bhavishya Learning India Pvt. Ltd, KIIT Bhubneswar, Arohan Foods Private Limited, Sesta Development Services.

Indian Institute of Entrepreneurship Contact Details:

Download SFURTI Guideline

Download IA Application Form

Checklist of the Documents

List of SFURTI Clusters

Technical Agencies (TA) of IIE Under SFURTI Scheme