MSME-005
Identification
| Scheme Name | Scheme of Fund for Regeneration of Traditional Industries |
|---|---|
| Acronym | SFRTI |
| Ministry / Department | Ministry of Micro, Small, and Medium Enterprises (MoMSME), Government of India |
| Implementing Agency | Networked multiple bodies: Co-managed on the central level by Nodal Agencies (NAs) like Khadi and Village Industries Commission (KVIC), Coir Board, and National Small Industries Corporation (NSIC), executing on the ground via registered local Implementing Agencies (IAs) and Special Purpose Vehicles (SPVs). |
| Level | Central |
| Launch Year | 2005 |
| Status | Active |
Classification
| Category | Credit & Finance |
|---|---|
| Sector | Both |
| Enterprise Size | Micro, Small |
Purpose & Benefit
| Objective | To organize traditional rural artisans, weavers, and village industries into collaborative geographic clusters to enhance their productivity, upgrade technology, improve market linkage, and secure sustainable livelihoods. |
|---|---|
| Benefit Type | Grant |
| Benefit Quantum | Up to a maximum funding ceiling of ₹2.50 Crore for Regular Clusters (up to 500 artisans) and up to ₹5.00 Crore for Major Clusters (more than 500 artisans). |
| Key Terms | Hard Interventions: Creation of shared infrastructure like Common Facility Centers (CFCs), multi-product processing hubs, packaging centers, and Raw Material Banks (RMBs). Soft Interventions: Market promotion, brand building, buyer-seller networking, design skill development, and expert counseling workshops. Special Purpose Vehicle (SPV): A localized collaborative governance layout formed directly by the working artisans to retain ownership and maintain self-sustainability of the cluster beyond government timelines. |
Eligibility
| Eligibility Criteria | Non-Governmental Organizations (NGOs), institutions of the Central and State governments, semi-government bodies, Panchayati Raj Institutions (PRIs), Section 8 companies, or Producer Companies working directly with artisans. The target cluster location must encompass a baseline minimum concentration of 100 local artisans (relaxed to a minimum concentration of 50 artisans for the North Eastern Region and Hilly tracts). |
|---|---|
| Udyam Required? | Yes |
| Documents Required | 1. Certificate of Registration of the applying Implementing Agency. 2. Complete Governing Body / Board of Directors list. 3. Audited financial statements and an organizational synopsis from inception. 4. Clear title deeds, leasing agreements, or land documents for setting up the Common Facility Center (CFC). 5. Verified artisan mapping list and signed Memorandums of Understanding (MoUs). |
| Exclusions | Individual standalone private business owners operating independently without an aggregate group structure, or projects seeking funding where clear land for setting up common infrastructure is unavailable (as scheme grant financing cannot be spent to purchase land properties). |
How to Apply
| Application Mode | Online and Offline |
|---|---|
| Application Portal | https://sfurti.msme.gov.in/ |
| Application Process | Step 1 (Concept Note): The implementing body registers on the official portal and submits a preliminary Concept Note alongside a Scorecard. Step 2 (Nodal Review): The proposal is evaluated by a designated Nodal Agency—such as the Khadi and Village Industries Commission (KVIC) or the Coir Board. Step 3 (DPR Preparation): Upon basic approval, a Technical Agency (TA) is appointed to compile a comprehensive Detailed Project Report (DPR) detailing all financial validations, land footprints, and artisan listings. Step 4 (Final Sanction): The DPR is presented to the Scheme Steering Committee (SSC) of the Ministry of MSME for final financial sanction and fund release. |
Reference & Verification
| Official Source URL | https://sfurti.msme.gov.in/ |
|---|---|
| Verified On | 2026-05-27 |