Lok Sabha Question No. 2576 (UNSTARRED), answered on 2018-03-12
Subject: SFURTI Scheme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: K.R.P. PRABAKARAN

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.2576 TO BE ANSWERED ON 12.03.2018

## SFURTI SCHEME

## 2576.       SHRI K.R.P. PRABAKARAN:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI) was conceptualised  to  make  traditional  industries  more  productive  and  competitive  and  to facilitate their sustainable development and if so, the details thereof;
- (b) the number of the khadi, coir and village industries clusters sanctioned and currently functional under SFURTI in the country, State/UT-wise;
- (c) the details of the clusters which are yet to be made functional and the reasons therefor, State/UT-wise;
- (d) the  budgetary  allocation  made  and  funds  utilised  for  SFURTI  and  the  number  of artisans benefited therefrom during the last three years and the current year; and
- (e) whether  the  Government  has  amended  the  guidelines  governing  implementation  of SFURTI scheme and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b): Government in the Ministry of Micro, Small and Medium Enterprises through Khadi and Village Industries Commission (KVIC) and Coir Board have been implementing a cluster-based  scheme  named  Scheme  of  Fund  for  Regeneration  of  Traditional  Industries (SFURTI) since 2005-06.  Khadi, Village Industries and Coir clusters have been taken up for development  by  providing  them  with  improved  equipment,  common  facilities  centres, business development services, training, capacity building and design and marketing support, etc.    State-wise  number  of  clusters  developed  under  Khadi,  Village  Industries  and  Coir  is placed at Annexure-I.

- (c): State/UT-wise details of SFURTI clusters which are yet to be made functional and the reasons therefor is placed at Annexure-II.
- (d): Financial assistance approved, funds released and number of artisans benefitted under SFURTI during the last three years and the current year is placed at Annexure-III.

## (e): The amended guidelines governing implementation of SFURTI scheme is as follows:

|   Sl. No | Component                         | Existing Provision                                                                                                                                                                                                                         | Proposed change                                                                                                                                                                          | Justification                                                                                                                                                                                                                                                                                                 |
|----------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Classificatio n of Clusters       | Maximum Project Cost: Mini: Rs.1.50 crore Major: Rs.3.0 crore Heritage: Rs.8.0 crore                                                                                                                                                       | Maximum Project Cost: Mini cluster is proposed to be discontinued. Regular: Rs.2.50 cr. Major: Rs.5.0 cr.                                                                                | Most of the clusters in the existing SFURTI scheme has been in the range of Rs.2 crore plus. Heritage clusters at Rs. 8 crore was too big to be fulfilled. Most of the demand was either at the Rs.2-Rs.2.5 crore or at Rs.5 crore.                                                                           |
|        2 | Land Cost as part of Project Cost | Contribution of Promoter to the tune of 25% of the sum of Hard and Soft Intervention. The cost of land is allowed as promoter's contribution. An amount of 10% as personal contribution is asked from the promoter to the cost of the CFC. | Contribution of Promoter to the tune of 10% of the Hard Intervention as own contribution in cash. However, the cost of land would be added as notional contribution to the project cost. | 25% as the contribution from the promoter through cost of land was making the project unviable, as the actual cash contribution was only to the tune of 10%. Thus the remaining 15% was always missing from the project. Land cost could be notional, but cannot become part of the actual Hard Intervention. |

***

## Annexure-I referred to in reply to part (a) & (b) of the Lok Sabha Unstarred Question No.2576 for answer on 12.03.2018

## State wise list of SFURTI clusters approved during the year 2014-15 to 2017-18 (as on 28.2.2018)

|   Sl. No. | State          | District                                | Name/ Product/ category                                                     | Nodal Agency (NA)   |
|-----------|----------------|-----------------------------------------|-----------------------------------------------------------------------------|---------------------|
|         1 | Andhra Pradesh | ChittoorMini Cluster                    | Kalamkari Products/ Handicrafts                                             | KVIC                |
|         2 | Bihar          | Madhubani Mini Cluster                  | Painting/ Handicraft                                                        | KVIC                |
|         3 | Chhattisgarh   | Raipur                                  | Dry Flowers/ Handicrafts                                                    | KVIC                |
|         4 | Chhattisgarh   | Bastar (Handicrafts)                    | Docra handicraft/Handicrafts                                                | KVIC                |
|         5 | Gujarat        | Bardoli Mini Cluster                    | Blacksmithy &Agri Tools                                                     | KVIC                |
|         6 | Gujarat        | Banaskantha Samvedna                    | Coir Handicrafts                                                            | Coir Board          |
|         7 | Jharkhand      | Gumla Major Cluster                     | Honey &Food Processing/Honey                                                | KVIC                |
|         8 | Karnataka      | Hudli Belgaum                           | Khadi                                                                       | KVIC                |
|         9 | Karnataka      | Harihara Davangere Mini Cluster         | Khadi                                                                       | KVIC                |
|        10 | Karnataka      | Sidhalgatta Chikballarpur Mini Cluster  | Khadi                                                                       | KVIC                |
|        11 | Karnataka      | Bidar Mini Cluster                      | Woodwork/Wooden furniture                                                   | KVIC                |
|        12 | Karnataka      | North Kannada(Kumta) Mini Cluster       | Coir products/ Coir pith, Rubberised coir, manure, Door mats, corridor mats | Coir Board          |
|        13 | Kerala         | Haripada Allapuzha                      | Coir products                                                               | Coir Board          |
|        14 | Kerala         | Neyatinkara Katakkada Mini Cluster      | Coir products/ Coir Furniture                                               | Coir Board          |
|        15 | Kerala         | Balussery                               | Coir products                                                               | Coir Board          |
|        16 | Madhya Pradesh | Hosangabad Mini Cluster                 | Bamboo products/ Bamboo                                                     | KVIC                |
|        17 | Madhya Pradesh | Betul                                   | Pottery/ Teracotta/ Handicrafts                                             | KVIC                |
|        18 | Maharashtra    | Sindhudurg Mini Cluster                 | Bamboo Products                                                             | KVIC                |
|        19 | Manipur        | Ningomthong Imphal EastMini Cluster     | Bamboo Products/ Bamboo/ Reed                                               | KVIC                |
|        20 | Odisha         | Khurda Mini Cluster                     | Abahana Fruits &Vegetable processing/others                                 | KVIC                |
|        21 | Odisha         | Jagmohan Brass &Bell Metal Mini Cluster | Bell Metal/ Handicraft                                                      | KVIC                |
|        22 | Tamil Nadu     | Tirupur                                 | Kangayamkhadi/ Khadi                                                        | KVIC                |
|        23 | Tamil Nadu     | Salem Sarkar Steel                      | Steel-Brass Furniture/ wooden furniture                                     | KVIC                |
|        24 | Tamil Nadu     | Salem (Mettur)                          | Salem Coir mat Consortium/ Coir furniture                                   | Coir Board          |
|        25 | Tamil Nadu     | DindigulTirupur                         | Coir products                                                               | Coir Board          |
|        26 | Tamil Nadu     | Dharmapuri Mini Cluster                 | Coir products                                                               | Coir Board          |
|        27 | Tamil Nadu     | Tirupur Kangayam                        | Kangayam Coir yarn, coir mats                                               | Coir Board          |
|        28 | Tamil Nadu     | Tirupur Major Cluster                   | Palladam Grow Bag/ Coir Grow Bag                                            | Coir Board          |
|        29 | Tamil Nadu     | Tenakashi Thirunelvelli Major Cluster   | Coir products                                                               | Coir Board          |
|        30 | Tamil Nadu     | Madurai Major Cluster                   | Coir products/ coir furniture                                               | Coir Board          |
|        31 | Tamil Nadu     | Kanyakumari Ethamozy                    | Coir Products                                                               | Coir Board          |
|        32 | Uttar Pradesh  | Azamgarh                                | Mau Pottery/ Handicraft                                                     | KVIC                |
|        33 | Uttar Pradesh  | Bhadohi-Sant Ravidas Nagar              | Hand knotted carpet/ Handicraft                                             | KVIC                |
|        34 | Uttar Pradesh  | Deoria                                  | Crochet Cluster/Handicraft                                                  | KVIC                |
|        35 | West Bengal    | Mursidabad ChakIslampur/                | Muslin and other Khadi                                                      | KVIC                |

## Annexure-II

## Annexure-II  referred  to  in  reply  to  part  (c)  of  the  Lok  Sabha  Unstarred  Question No.2576 for answer on 12.03.2018

## State/UT-wise details of SFURTI clusters which are yet to be made functional

|   Sl. No. | State          | District                             | Name/ Product/ category          | Nodal Agency (NA)   | Progress/Reasons                                                                                                                        |
|-----------|----------------|--------------------------------------|----------------------------------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Andhra Pradesh | Vizainagaram                         | Coir Mattress                    | Coir Board          | CFC construction is under progress. Plant &Machinery have been ordered.                                                                 |
|         2 | Andhra Pradesh | Chittoor Mini Cluster                | Coir Products                    | Coir Board          | Promoter's contribution awaited.                                                                                                        |
|         3 | Andhra Pradesh | Kondapalli (Krishna Dist.)           | Wooden Toys Mini Cluster         | NIMSME              | Implementing Agency (District Rural Development Agency) trained officers were transferred which affected the activities of the cluster. |
|         4 | Andhra Pradesh | Pedanna (Krishna Distt.)             | Kalamkari Painting Major Cluster | NIMSME              | Promoter's contribution awaited.                                                                                                        |
|         5 | Assam          | Majuli                               | Handicraft Mini Cluster          | IIEG                | CFC construction is under progress. Plant &Machinery have been ordered.                                                                 |
|         6 | Assam          | Manas                                | Handloom Dress Mini Cluster      | IIEG                | CFC construction is under progress. Plant &Machinery have been ordered.                                                                 |
|         7 | Assam          | Barpeta                              | Metal ware Mini Cluster          | IIEG                | CFC construction is under progress. Plant &Machinery have been ordered.                                                                 |
|         8 | Assam          | Mirza                                | Handloom Dress Mini Cluster      | IIEG                | Tendering process is under progress for civil construction and machinery.                                                               |
|         9 | Assam          | Dibrugarh (Moran) Major Cluster      | Handloom                         | IIEG                | CFC construction is under progress. Plant &Machinery have been ordered.                                                                 |
|        10 | Bihar          | Rohtas                               | Pottery/ Handicraft              | KVIC                | Promoter's contribution awaited.                                                                                                        |
|        11 | Haryana        | Panipat                              | Multicraft Cluster /Handicraft   | KVIC                | Approved in last SSC on 25.10.2017. The minimum time taken for set up of CFC varies from 6-9 months.                                    |
|        12 | J&K            | Anantanag                            | Weaving Major Cluster            | J&K KVIB            |                                                                                                                                         |
|        13 | J&K            | Budgam                               | Weaving Major Cluster            | J&K KVIB            |                                                                                                                                         |
|        14 | J&K            | Srinagar Karur Manch (Major Cluster) | Honey                            | J&K KVIB            |                                                                                                                                         |
|        15 | Jharkhand      | Koderma Mini Cluster                 | Agarbatti / others               | KVIC                | Advanced stage of completion.                                                                                                           |
|        16 | Jharkhand      | Santhal Pargana                      | Khadi products/ Khadi            | KVIC                | Promoter's contribution awaited.                                                                                                        |
|        17 | Karnataka      | Tumkur Heritage Cluster              | Coir products                    | Coir Board          | Tendering process is under progress for civil construction and machinery.                                                               |
|        18 | Karnataka      | Hassan (Haralakatta) Mini Cluster    | Coir products                    | Coir Board          | Promoter's contribution awaited.                                                                                                        |

|   19. | Kerala         | Tirrur Major Cluster                  | Virgin Coconut Oil                            | NIMSME     | Procurement of machinery for CFC delayed.                                                                                   |
|-------|----------------|---------------------------------------|-----------------------------------------------|------------|-----------------------------------------------------------------------------------------------------------------------------|
|    20 | Madhya Pradesh | Jobat - Alirajpur                     | Natural Dye/ others                           | KVIC       | Tendering process is under progress for civil construction and machinery.                                                   |
|    21 | Madhya Pradesh | Chitrakoot Major Cluster              | Herbal Products/ others                       | KVIC       | Advanced stage of completion.                                                                                               |
|    22 | Maharashtra    | Beed Mini Cluster                     | Banjara Handicraft/ Handicraft                | KVIC       | Tendering process is under progress for civil construction and machinery.                                                   |
|    23 | Maharashtra    | Sawantwadi Sindhudurg                 | Coir products Mini Cluster                    | Coir Board | Tendering process is under progress for civil construction and machinery.                                                   |
|    24 | Maharashtra    | Pendur Sindhudurg Mini Cluster        | Coir products                                 | Coir Board | Tendering process is under progress for civil construction and machinery.                                                   |
|    25 | Odisha         | Mayurbhanj Betonoti Mini Cluster      | NTFP/ Non timber forest product(Bamboo )      | KVIC       | Promoter's contribution awaited.                                                                                            |
|    26 | Odisha         | Balasore (Soro) Major Cluster         | Stone Carving                                 | IEDO       | Advanced stage of completion.                                                                                               |
|    27 | Punjab         | Bhatinda                              | Honey Bee Major Cluster                       | NIMSME     | Tendering process is under progress for civil construction.                                                                 |
|    28 | Punjab         | Hoshiarpur                            | Wood Inlay& Lacquer Major Cluster             | NIMSME     | Tendering process is under progress for civil construction and machinery. Assembly elections also delayed the work.         |
|    29 | Rajasthan      | Dausa Sikandara Mini Cluster          | Stone Carving/ Handicraft                     | KVIC       | Budget revised with extended project cost, to be submitted by IA to Ministry.                                               |
|    30 | Tamil Nadu     | Coimbatore Pollachi (South)           | Pollachi Heritage Cluster                     | Coir Board | Tendering process is under progress for civil construction and machinery.                                                   |
|    31 | Telangana      | Pembarthy (Warangal)                  | Metalware Mini Cluster                        | NIMSME     | Construction work is under progress.                                                                                        |
|    32 | Telangana      | Mothkur (Mehboob- nagar) Mini Cluster | Ikat                                          | NIMSME     | Promoter's contribution awaited. Construction of CFC building is under progress, delayed due to heavy rains.                |
|    33 | Telangana      | Ieeza (Mehboob- nagar) Major Cluster  | Gadwal                                        | NIMSME     | Land belongs to Govt. and approval got delayed. Preparing building drawings and machinery specifications is under progress. |
|    34 | Tripura        | West Tripura                          | Bamboo Utility Major Cluster                  | IIEG       | Tendering process is under progress for civil construction and machinery.                                                   |
|    35 | Uttarakhand    | Dehradun                              | Raipur &SahaspurAipan Art Cluster/ Handicraft | KVIC       | Approved in last SSC on 25.10.2017. The minimum time taken for set up of CFC varies from 6-9 months.                        |
|    36 | Uttar Pradesh  | Varanasi Mirzapur Mini Cluster        | Carpet Weaving/ Handicraft                    | KVIC       | Promoter's contribution awaited.                                                                                            |
|    37 | Uttar Pradesh  | Amethi &Sultanpur                     | Baraulia Medicinal Plants Cluster             | IMEDF      | Approved in last SSC on 25.10.2017. The minimum time taken for set up of CFC varies from 6-9 months.                        |

## Annexure referred to in reply to part (d) of the Lok Sabha Unstarred Question No.2576 for answer on 12.03.2018

Financial assistance approved, funds released and number of artisans benefitted during the last three years and the current year

| Sl. No   | Name of Nodal Agency      | DSR Approved   | DPR Approved   | Total Assistance approved (DPR) (Rs. in lakh)   |   Funds released upto 2017-18* (Rs. in crore) | No. of Artisans benefitted   |
|----------|---------------------------|----------------|----------------|-------------------------------------------------|-----------------------------------------------|------------------------------|
| 1        | KVIC                      | 38             | 33             | 4499.65                                         |                                         37.97 | 13355                        |
| 2        | Coir Board                | 20             | 20             | 5105.77                                         |                                         41.14 | 26685                        |
| 3        | IIE, Guwahati             | 6              | 6              | 1049.75                                         |                                          7.35 | 3085                         |
| 4        | NIMSME, Hyderabad         | 8              | 8              | 1647.62                                         |                                          7.76 | 4609                         |
| 5        | J&K KVIB                  | 3              | 3              | 1194.80                                         |                                          9.54 | 11200                        |
| 6        | IEDO                      | 2              | 1              | 235.15                                          |                                          1.13 | 550                          |
| 7        | IMEDF                     | 1              | 1              | 225.20                                          |                                          0.96 | 416                          |
|          | OAE/Professional Services |                |                |                                                 |                                          0.39 |                              |
|          | TOTAL                     | 78             | 72             | 13957.94                                        |                                        106.24 | 59900                        |