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India has a rich tradition in traditional industries. The eco-friendly products of traditional industries not only have great potential for growth in production and export but can also lead to widespread generation of employment opportunities in the rural areas of the country. With a view to making the traditional industries mor,e productive and competitive and facilitating their sustainable development, a Central Sector Scheme titled the "Scheme of Fund for Regeneration of Traditional Industries (SFURTI)" has been approved at a total cost of Rs. 97.25 Crore. Khadi &Village Industries Commission (KVIC) has been allocated Rs. 73.00 Crores (approx) with a target to implement 79 numbers of KVI clusters.

Traditional Industry:
"An activity which produces marketable products, using locally available raw material and skills and indigenous technology".

Traditional Industry Clusters:
"Geographical concentration of around 500 beneficiary families of artisans/micro enterprises,suppliers of raw materials,traders,service providers, etc., located within one or two revenue sub-divisions in one or more contiguous District(s)".

Objectives of the Scheme :
Development of Traditional Industries.Making them more competitive and productive.Sustainable employment for artisans and rural entrepreneurs.Inovative Skills-Technology upgradation Developing public,private partnership.Strengthening the local governance system of Industry Clusters

  • Development of Traditional Industries
  • Making them more competitive and productive
  • Sustainable employment for artisans and rural entrepreneurs.
  • Innovative Skills-Technology upgradation  Developing   public private partnership
  • Strengthening the local governance system of Industry Clusters

Target groups:
Artisans of Traditional Khadi & Village Industries and all the Stake holders of Cluster.

Exclusive range of Selected Traditional Cluster

A) Khadi:
•  Silk    • Woolen     •   Cotton   •   Muslin

B) Village Industries:
•Artistic/Recycles/Eco-friendly - Cane & Bamboo, Embroidery & Textiles, Wood Carving, Metal, Handmade Paper, Fibre, Agarbatti
•Traditional/Fashion - Pottery, Lime, Leather, Cloth designs, Garments
• Marine Gifts/Food Based-River Shell Button, Neera, Honey, Food Products
• Medicinal -Siddha & Ayurveda, Lac
• Other exclusive products of local skills.

Formulation of Cluster Proposal:

(1)   Scheme Steering Committee (SSC) : The committee is constituted under the chairmanship of Secretary, Ministry of MSME for providing overall policy.coordination and management support to the Scheme.
(2)   Nodal Agency (N.A.) :  The   Khadi and  Village Industries Commission is designated as Nodal Agency for the Scheme.The Nodal Agency shall be responsible for holding and disbursement of funds to the identified Implementing Agencies and monitoring of the Scheme under the overall supervision of Scheme Steering Committee.
(3)   Technical Agencies (T.A.s) :To provide technical support to the Nodal Agencies and Implementing Agencies and assisting nodal agencies in conducting training, validating action plans, monitoring and evaluation, etc.
(4)   Implementing Agencies (I.A.s): Non-Government organizations (NGOs) with expertise in cluster developments. Active role in implementation of clusters, working at the grass-roots level particularly in rural industrialization.
(5)   Cluster Development Executive (C.D.E.): Support Personnel for carrying full time cluster based activities with responsibilities of conducting diagnostic study, preparation and implementation of action plan, promoting linkages, building local governance, framework etc.
(6)   Cluster Development Co-ordination Group (CDCG) :The group of cluster level stakeholders including traditional industry enterprises, banks, State Govt. agencies.
The clusters development proposals received from KVIC/KVIB Institutions, NGOs, State / Central Govt. organizations were scrutinized by Nodal Agency on transparent criteria and placed for approval of Scheme Steering Committee (SSC).The Cluster Development Executives with the support and guidance of Implementing Agency,Technical Agency and Nodal Agency will conduct the diagnostic study of the cluster and prepare Annual Action Plan which will form the basis for the development of cluster.

Financial Assistance:

(Maximum Cost of Cluster Rs. 122.00 Lakhs for Khadi and Rs. 87.00 Lakhs for Village Industry)

a)   Replacement of Charkhas and Looms (For Khadi Clusters)
b)   Common Facility Centre (CFC)
c)   Product Development and Design Intervention
d)   Market Promotional Assistance
e)   Capacity Building Measures
f)   Cost of ImplementingAgency
g)   Cost of Cluster Development Executive
h) Cost of Technical Agencies
(The beneficiary contribution of 25% of cost towards heads mentioned at Sr. a to c above)

Desired Outcome:
• Increased employment
• More productivity
• Increase in the earning of the artisans
• Exposure to new market
• Export of cluster products to other Countries
• Better livelihood of rural artisans.
• Earning of Foreign Exchange
• Attracting new generation


A) Khadi Cluster - 29
Cotton Khadi (25), Woolen Khadi (3), Silk Khadi (I).

B) V.I. Clusters - 50
Cane & Bamboo (I I), Bee-keeling (9), Carpentry/Woolen Works (6),
Embroydary and Textiles (4), Pottery (4), Food Processing (2),Agarbatti (2), Fibre Industry (2), River Shell Button (I), Lac (I), leather (2), Metal (3), Hand Made Paper (I), Siddha & Ayurveda (I), Neeera (I).