Ministry of MSME implementing SFURTI for regeneration of traditional industry

Traditional Industries in India have great potential in terms of production, export and generation of employment. The Government has taken several measures to tap the potential of such industries. The Ministry of Micro, Small and Medium Enterprises is implementing the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)’ for regeneration of traditional industry clusters in khadi, village industries and coir sectors over a period of five years beginning with 2005-06. The Scheme envisages need-based assistance for replacement of production equipment, setting up of common facilitycentres (CFC), product development, quality improvement, improved marketing, training and capacity building, etc. The guidelines of SFURTI are available on the website of the Ministry at www.msme.gov.in

Release of funds under SFURTI is cluster specific and not to the States directly.The funds are released to the Nodal Agencies, i.e. Khadi and Village Industries Commission (KVIC) and Coir Board, who are responsible for holding and disbursing the funds on receipt of utilisation certificate and depending on actual physical progress. Funds for development of clusters are being kept in a separate account by the Nodal Agencies which are subject to audit. Funds released to the Nodal Agencies during last three years and funds earmarked for current year 2009-10 under SFURTI are as under: (Rs. crore)

*Funds allocated in BE 2009-10 under SFURT

Further, a new scheme titled ‘Prime Minister’s Employment GenerationProgramme (PMEGP)’ has been introduced during 2008-09 which is a significant initiative for setting up micro enterprises (including those in traditional industries sector) in rural and urban areas with attractive levels of subsidy for generation of additional employment opportunities. It is implemented through Khadi and Village Industries Commission (KVIC) as the single nodal agency at the national level. At the State/Union Territories level, the scheme is being implemented through field offices of KVIC, State/Union Territory Khadiand Village Industries Boards and District Industries Centres (DICs) with involvement of banks.

This information was given by Shri Dinsha Patel, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises in a written reply to a question in the Lok Sabha.