Policy

50 SFURTI clusters to support over 42,000 rural artisans

These SFURTI clusters have been inaugurated in Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, MP, Maharashtra, Manipur, Nagaland, Odisha, Rajasthan, Tamil Nadu, UP and West Bengal
50 SFURTI clusters to support over 42,000 rural artisans
50 SFURTI clusters to support over 42,000 rural artisans

Union Minister for Micro,Small & Medium Enterprises Nitin Gadkari Monday inaugurated 50 artisan-based SFURTI clusters, spreading over 18 states. In these clusters, over 42,000 rural artisans have been supported in the traditional segments of muslin, khadi, coir, handicraft, handlooms, wood craft, leather, pottery, carpet weaving, bamboo, agro processing, tea, among other traditional products. The Ministry of MSME has funded an amount of around Rs. 85 crore for development of these clusters. The ministry is implementing a scheme of Fund for Regeneration of Traditional Industries (SFURTI) with a view to organise traditional industries and artisans into clusters to make them competitive and increase their income.

Inaugurating the clusters, Gadkari said more research needs to be done on what kind of village products are required by the consumers, and how to attractively design and market these products. He suggested that the National Institute of Design, Ahmedabad may be approached to improve the design and attractiveness of traditional products. A web portal is also required, on the lines of Amazon or Alibaba, to market these products effectively, both in India and abroad, he added.

The minister also pointed out the need to step up the pace of formation of such clusters, since only 82 of the 371 announced so far are actually functional, and said a target of 5,000 clusters is easily achievable if red-tape can be reduced.

During the inauguration, Minister of State for MSME, Pratap Chandra Sarangi said formation of the clusters builds the confidence of traditional craftsmen, and it is part of the government’s strategy of keeping villages at the core of the economic policy.

These clusters have been inaugurated in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Odisha, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal

Background
As on date, there are 371 numbers of clusters which have are being funded by the Ministry of MSME, supporting 2.18 lakh artisans with a total Government assistance of Rs. 888 crore. More than Rs.708 crore has been the budgetary allocation under the scheme, of which more than Rs. 567 crore has been released for the implementation of the scheme so far. These clusters are spread all over the country covering 248 districts. The ministry aims to support at least one cluster in each district in the coming period.

Sector-wise break-up of the number of clusters

Main SectorsHandicraftsCoirBambooHoneyFood ProcessingKhadiOthersTotal
Approved Clusters145413325591058371

SFURTI clusters are of two types i.e., Regular Cluster (500 artisans) with government assistance of up to Rs.2.5 crore and Major Cluster (more than 500 artisans) with government assistance up to Rs.5 crore. The artisans are organised into SPVs which can be (i) a society registered under Societies (Registration) Act, 1860, (ii) a co-operative society under an appropriate statute, (iii) a producer company under Section 465 (1) of Companies Act, 2013 (18 of 2013), (iv) a Section 8 company under the Companies Act, 2013 (18 of 2013) or (v) a Trust.

Under the scheme, the ministry supports various interventions including setting up of infrastructure through Common Facility Centres (CFCs), procurement of new machineries, creating raw material banks, design intervention, improved packaging, improvement of marketing infrastructure, improved skills and capacity development through training and exposure visits Besides, the scheme focuses on strengthening 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 through building 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 traditional industries.  

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