Indian Institute of Entrepreneurship

An Organisation of the Ministry Of Micro, Small and Medium Enterprises(MSME),
Govt.of India
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SFURTI Clusters

The “Scheme of Fund for Regeneration of Traditional Industries” (SFURTI) was introduced by the Ministry of Micro Small and Medium Enterprises, Government of India, and Khadi and Village Industries Commission (KVIC) was entrusted with the responsibilities to work as a nodal agency for implementation of the scheme. Acknowledging the vast experience of IIE in implementing similar projects, IIE was assigned the role of a Technical Agency (TA). As a technical agency, IIE was responsible for capacity building, conducting diagnostic study and developing an action plan for implementation and monitoring, handholding and providing technical support to the clusters.

Activities undertaken as a TA

As Technical agency, the portfolio of activities undertaken by IIE is outlined below:

Diagnostic Study: IIE provided complete guidance and handholding support in carrying out 16 diagnostic studies and also assisted the implementing agencies and CDAs in preparing detailed action plans and validating the same through cluster development coordination group meeting.

Training and Capacity Building: IIE conducted a series of training/ seminars/ workshops covering various aspects of the implementation of the programme. This included training for nodal agency officials, implementing agency officials and CDEs, need based trainings for cluster artisans etc. In addition, IIE also facilitated linkage with various professional and support institutions for planned capacity building activities for different clusters.
IIE, as a technical, agency organised workshop on the SFURTI scheme for officials of implementing agencies and nodal agencies. A specifically designed two phase programme was also organised for capacity development of the Cluster Development Executive (CDE). Once the implementation of the clusters started, need specific programmes like training on Formation and Management of SHG, training on Marketing Management, Quality control etc. were organised for various clusters. These training programmes greatly helped the clusters in adopting a professional approach in managing the clusters. Few clusters took the initiative of going for ISO certification.

Product Development: Besides capacity development, IIE has also assisted the implementing agencies in product development both through design development and technology infusion by identification of appropriate designers, facilitating experts visit, etc. It also helped in providing linkages with technologists and expert institutions like weavers service centre etc, Cane and Bamboo Technology Centre CBTC, Design Development Department (IIT) etc. Some of the initiatives taken up include-

  1. Workshop and quality control: The programme was conducted for the Mukalmuwa Silk Khadi Cluster. As a follow- up measure of the training programme, IIE facilitated linkage with a quality control consultant. It is worth mentioning that the cluster is now ISO certified.
  2. Linkage/ interaction with designer: In certain cases, IIE has identified and selected designers on behalf of the IAs. The designers developed market driven value added products and these products got very good response from the market.
  3. Networking with Expert Support Institution: Linkage have been developed with relevant expert institution of different clusters. For example, for bamboo clusters linkage have been developed with organizations like Cane and Bamboo Technology Centre (CBTC), IIT, etc. The Khadi cluster and Dress making cluster were linked up with the Weavers Service Centre. For Bee keeping cluster linkage with the Indian Institute of Packaging was facilitated.

Market Promotion For market promotion, IIE has assisted the different clusters through initiatives like development of E-portal, conducting and facilitating buyer seller meet, facilitating exhibition participation, providing linkages with marketing experts and retail houses etc.
As a part of these initiatives, IIE has developed E-portal for MPCS Cane and Bamboo cluster, Meghalaya and Mukalmuwa Silk Khadi cluster, Assam.
  1. Further, IIE organized Buyer-Seller meet in the form of Cluster Conclave in order to provide market linkage with established buyers and could generate good response and orders from buyer. Moreover, the feedbacks and response of buyers helped the implementing agencies in understanding the customer preferences and market need and accordingly upgrade their products.
  2. IIE facilitated interaction/linkages to the IAs of different clusters with marketing consultants in order to channelize their products. Presently, some of the clusters are regularly supplying their products through different marketing channels facilitated by IIE.

Assistance in Establishment of CFC As a technical agency, IIE has provided help and guidance to the implementing agencies of the clusters in preparation of Techno Feasibility Report for the CFC. The report included identifying suitable location of the CFC, identifying agency (s) for construction of CFC, need based facilities to be installed in the CFC, identifying appropriate list of machineries and equipments for CFC etc.

Monitoring and Evaluation In order to keep track of the performance of cluster activities, IIE had developed software named “Chitragupt”. The software enabled online reporting in order to get real time information on the performance of clusters/ different ongoing cluster activities in terms of physical and financial achievement.
Regular handholding, monitoring and evaluation of the clusters helped in making need based intervention in the cluster
Through the impact assessment study carried out by IIE, the following visible impact could be seen in most of the clusters.

Social Capacity Building
Parameters Pre-Intervention Post Intervention
Coverage of artisans Comprised of artisans traditionally involved on part time basis. Coverage increased and full time artisans came up in the clusters.
Bankers meet on micro Finance Nil Yes. SHGs got credit linkage
Exposure Visit Nil Exposure visit to successful clusters
Awareness camp on use of modern technology Nil Awareness created through awareness camp
Product and Design Development
Parameters Pre-Intervention Post Intervention
Productivity Lack of awareness on concept of productions Increase in production ( 20% to 25%)
Workshops on Design Development
  1. Lack of product diversification
  2. Poor product finishing
  3. Lack of quality awareness
  1. Value added product
  2. Better product finishing
  3. Streamlining of product line
Market Promotional Activities
Parameters Pre-Intervention Post-Intervention
Participation in Buyer-Seller Meets No participation Participation in a number of Buyer-Seller meet and  few orders were generated
Product Catalogue Nil Product catalogue developed
Common facility Centre (CFC)
Parameters Pre-Intervention Post Intervention
Use of facilities at CFC N.A CFC set-up in all clusters
Distribution of toolkits N.A Tool kits distributed in clusters

An assessment of each and every cluster revealed that there has been an increase in income of the artisans post intervention

List of Clusters under SFURTI

State Name of the Cluster State Name of the Cluster
Assam 1. Barpeta Cane and Bamboo cluster
2. Dhubri Cane and Bamboo cluster
3. Mukalmuwa Silk and Khadi cluster (Khadi cluster)
Mizoram Cane and Bamboo cluster, Aizwal
Meghalaya Cane and Bamboo, Madankynsaw Manipur 1. Wood and Carpentry cluster, Thoubal 2. Rugchane Cane and Bamboo
Nagaland 1. Nagaland khadi cluster, Dimapur (khadi cluster)
2. Mon Beads making cluster
Arunachal Pradesh Traditional Dress making cluster, Ziro
Sikkim Sikkim Bee Keeping Cluster