DIRECTORATE OF SFURTI

KHADI AND VILLAGE INDUSTRIES COMMISSION

3, Irla Road, Vile Parle (West), Mumbai – 400 056.

Ph./Fax: 022-26713696 E-Mail:

No. KVIC/SFURTI/Guidelines/2008-09 Date: 18.06.2008

OFFICE ORDER - 2023

Sub: - Guidelines for further strengthening of Scheme of Fund for Regeneration of Traditional Industries(SFURTI) Programme - Reg.

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Indian art, crafts and craftsmanship are famous world wide. The promotion of these industries has direct bearing on the livelihood of the artisans engaged with these industries. In the modern age of new technology, wherein traditional skills have almost been replaced by machines, traditional art and crafts have to be refocused being eco-friendly products having great potential for their growth as well as providing employment opportunities in rural areas across the country.

2.With a view to make the traditional industries more productive, competitive and to facilitate their sustainable development, the Government of India announced a Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” which is being implemented by the Ministry of Micro, Small and Medium Enterprises (MS & ME), Government of India and its organizations, institutions in collaboration with State Governments, concerned organizations, non-Governmental organizations etc. by giving focus on rural traditional industry clusters.

3.The primary objectives of this scheme are to create sizeable sustainable employment opportunities by offering them a respectable livelihood with remunerative wages throughout the year preferably to people living in backward districts of the country through Khadi and Village Industries activities.

4.In the above background, the following areas need special attention:

i)Selection / identification of Implementing Agency (IA) play a vital role with effective backward and forward linkages.

ii)Perspective planning is very essential before starting any project for overall cluster development.

iii) IA should plan and decide in advance about the product / products to be produced, processes / interventions involved, other infrastructure needed for improving the quality of the product, designing, packing, branding and ultimate marketing.

  1. In the case of Khadi clusters, the IA should ensure at least 500 active spinners and weavers, adequate infrastructure (i.e. land and buildings) and sizeable turnover of production, sales and technical manpower. The following areas should be given importance and concentration for overall development of SFURTI programme under Khadi.

i)The basic infrastructure is of utmost importance in order to provide proper ambiance and better working conditions. Focus should be given to work sheds for spinners / weavers / other artisans, proper lighting arrangements etc. the overall, ambiance and place should be hygienic for the artisans, so that they can work with zeal and enthusiasm which will not only improve the productivity but also enhance their earnings with dignity.

ii)While procuring Khadi implements, instructions should be strictly followed as per the letter No: DKPM/Costing/implements/2006-07 dated 05.09.2006 to maintain quality standard as per BIS norms. Deviations will be viewed seriously and responsibility will be fixed.

iii)The manufacturers of Khadi producing implements have to follow the laid down conditions including training, providing service manual and spare parts etc., if there is any deviation like use of inferior quality components on charkhas and looms, the manufacturer will be held responsible and order may be cancelled.

iv)IA should ensure for regular supply of raw material throughout the year for spinners and yarn to weavers.

v)The Commission has recently developed e-charkha in collaboration with FLEXTRON, Bangalore. A decision has already been taken for supply of e-charkha in the cluster. While care is being taken by KVIC in the reliability of the implements, warranty for the e-charkha component, may also be obtained while procuring the same. However, attachments of retrofit equipment have to be kept optional and are to be supplied against a specificrequest of order furnished by the implementing agency.

vi)Further, where there is no institutional arrangements for supply of equipments for Silk, Wool and dyeing printing etc, such implements are to be procured from the reputed producers or manufacturers such as Silk Board, Wool Board who also supply the requisite type of implements to silk, wool producing institutions, preferably from nearby areas of the cluster.

6. Similarly, in case of Village Industries clusters, the IA should have experience in cluster development, particularly at grass root level in rural industrialization. The following areas should be given importance and concentration for overall development of SFURTI programme under Village Industries.

i)The machineries / equipments for the Common Facility Center (CFC) and the implements for the artisans must be procured from the enlisted manufacturers only.

ii)The advise of reputed institutes in the field of that particular industry i.e. Central Beekeeping Research & Training Institute, Pune, Kumarappa National Handmade Paper Institute, Jaipur, Central Village Pottery Institute, Khanapur, Mahatma Gandhi Institute of Rural Industrialization (MGIRI), Wardha and other expert Technical Institutes under KVIC or outside KVIC such as IITs / CSIR etc. must be obtained and new innovative technology / process must be introduced in SFURTI clusters.

iii)Wherever there are no enlisted manufacturers for supply of machinery/equipments for a particular industry, the machinery/equipments required may be procured from the reputed manufacturers having the track record of supply of quality machinery/equipments and the service guarantee, preferably from the nearest place of the cluster.

iv)The manufactures should also supply service manual and other technical details for preventive maintenance so that small repairs can be carried out at the Implementing Agency level. Wherever required the trial run of the machinery and required training to the artisans to be provided/arranged by the manufacturer.

v)The basic infrastructure, proper ambience and better working conditions should also be adhered to as in case of Khadi.

vi)Perspective planning for the production of V.I. items should be done in a way to ensure sustainable employment and remunerative wages to the artisans engaged in the cluster.

  1. The State/Divisional Directors may depute Khadi / V.I. technical staff for checking of quality at random and any deviation if found in machineries/implements supplied should immediately be taken up with the manufacturers and to the Implementing Agency.
  2. The State / Divisional Directors may nominate an official not below the rank of Assistant Development Officer for each cluster, preferably having experience in the same line, for regular monitoring of the cluster at State/Divisional office level.

Looking to the changing market scenario opening up of economy, it has become essential to have multiple products with strong foundation of volume to compete and exploit the domestic as well as export potential. As such, it is inevitable to have a constant development and up gradation of the product, training, capacity building, exposure visits and cluster level networking with similar clusters in the field. Need based support to broaden the market base for overall development and profitability of the cluster is very essential.

  1. Programme monitoring and concurrent evaluation:

i)The Implementing Agency (IA) is the nerve centre for the cluster identified for implementation of Khadi / V.I. They are supposed to play very proactive role by dovetailing various forward and backward linkages looking into the need of the local artisans who are deprived of their legitimate dues.

ii)Cluster Development Executive (CDE) should have updated information about the basic needs of the cluster as well as to ensure the regular supply of raw material, training, skill upgradation and other socio economic needs of the artisans by dovetailing the benefits from Central / State Govt. departments / agencies for a holistic development of the cluster. He / She should invariably be headquartered at the cluster place to monitor and co-ordinate the various day-to-day activities.

iii)As sufficient funds have been earmarked to Technical Agencies (TAs) to guide, support, advise and extend their technical know-how and prepare the perspective plan, their role has become very crucial for overall development of the cluster.

iv)Looking to the importance and spirit behind SFURTI programme, it is the sole duty and responsibility of State / Divisional Directors and Dy. C.E.O. of the concerned zone to ensure effective implementation of Guidelines / Circulars / Office Orders issued from time to time in this regard for overall socio economic upliftment of the artisans, spinners, weavers and other stalk holdersetc. associated with the cluster.

v)The format for reporting of Dy. CEOs, State/Divisional Directors, Implementing Agencies, Technical Agencies and Cluster Development Executives are enclosed. The reporting from each level must be ensured as per the time frame prescribed.

As of now, substantial number of SFURTI clusters has become operational but it has been observed that only some clusters could achieve the desired level of progress and results. Lookinginto the importance and priority attached to this programme by Govt. of India, it has become absolutely essential to concentrate with full vigor and ensure that all the issues / concerns narrated above are fully addressed in letter and spirit. All necessary steps are to be ensured to achieve the overall objectives of creation of sustainable employment opportunities with remunerative wages to the artisans associated with the cluster throughout the year.

Encl: Format I to VII

Chief Executive Officer

Copy to the following for necessary action:

  1. All Implementing Agencies
  2. All Technical Agencies
  3. All Cluster Development Executives
  4. All State Office / Divisional Office Directors
  5. All Zonal Dy. CEOs
  6. All Industry / Programme Director. Central Office, Mumbai
  7. Directorate of Publicity for printing in "Jagruti"

Copy for information to:

  1. All Members of KVIC
  2. Financial Advisor
  3. Secretary to Chairperson

Sd/-

Chief Executive Officer

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