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State Mini Revamped Scheme Fund for Regeneration of Traditional Industries Scheme

Name of the scheme State Mini Revamped Scheme Fund for Regeneration of Traditional Industries Scheme
Ministry/Department Directorate of MSME, Haryana
Description The state government has introduced State Mini Revamped Scheme Fund for Regeneration of Traditional Industries (SMSFURTI) under MSME Policy 2019 for upliftment of traditional clusters in rural areas.

The objectives of the scheme are as follows:

  • To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long-term sustainability and economies of scale.
  • To provide sustained employment for traditional industry artisans and rural entrepreneurs in the state.
  • To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and marketing infrastructure.
  • To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits.
  • To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities.
  • To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner;
  • To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.
  • To look for setting up of multi-product cluster with integrated value chain and a strong market driven approach for viability and long-term sustainability of the cluster.
  • To ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
  • To identify and understand target customers of clusters, understand their needs and aspirations and develop and present product lines to meet the requirement. Substantial focus should be on the buyer segment that places a premium on natural, eco-friendly, ethically sourced and the uniqueness of the Khadi and VI products.
  • To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value.
  • To make a paradigm shift from a supply driven selling model to a market driven model with the right branding, focus product mix and correct positioning and right pricing to make the offering holistic and optimal for each of the focus categories. To tap the E-Commerce as a major marketing channel given the outreach and the growing market penetration of E-Commerce, there is a need to devise a quick strategy to make its presence felt in the E-Retail space.
  • To make substantial investment in the area of product design and quality improvement. There is a need to standardize the quality of inputs and processes so that the products meet the quality benchmarks. Research need to be done to develop new textures and finishes to cater to the prevailing market trends.
Nature of assistance
  • Grant in aid of 90% of project cost for setting-up of CFCs housing design center, raw material bank, training center, exhibition hall, processing center, packaging facility, etc. for upliftment of artisan based enterprises.
  • The maximum project cost for consideration of 90% aid as per State Mini Revamped Scheme Fund for Regeneration of Traditional Industries (SFURTI) Scheme is
  • Heritage Cluster – INR 3 Cr.
  • Major Cluster – INR 1.5 Cr.
  • Mini Cluster – INR 0.75 Cr.
  • The funding pattern under the scheme will be as under:
  • Maximum budget for soft interventions is earmarked to the tune of 10% max. of the project cost for all three categories of clusters. The expense incurred on Soft Interventions will be provided to the tune of 95% by State Government and 5% by SPV.
  • For hard interventions, the State Grant will be restricted to 90% of the cost of project as per eligible project cost. The cost of project includes cost of land and building (subject to maximum of 25% of Project cost), machinery & equipment, miscellaneous fixed assets. The SPV shall arrange the working capital if any, from its own resources.
  • The entire cost of land shall be borne by the SPV. In case of existing land and building is provided by stakeholder, the cost of land and building will be decided on the basis of valuation report prepared by an approved agency of the State Government. The cost of land and building shall be taken towards the contribution of the SPV in the project. CFC can also be set up on leased premises, however, irrevocable lease shall be not less than a period of 10 years.
Who can apply? It is necessary to form a Special Purpose Vehicle (SPV) prior to setting up of and running the proposed CFC. The SPV shall consist of artisan’s members who fall under the definition of “Micro Enterprises”.

The member units should have filed Haryana Udhyam Memorandum (HUM) and Udyam Registration Certificate (URC), artisan card or weaver’s registration with the concerned DIC/MDO.

The SPV should have a character of inclusiveness wherein provision for enrolling new members to enable prospective entrepreneurs in the cluster to utilize the facility should be provided.

There should be a minimum number of artisans as per eligibility criteria serving as members of the Special Purpose Vehicle (SPV). There is no ceiling on the maximum number of members.

  1. Heritage Cluster – Minimum 500 artisans
  2. Major Cluster – Minimum 250 artisans
  3. iMini Cluster – Up to 100 artisans
How to apply?
  1. Preliminary Application

The beneficiaries / SPV of artisanal cluster shall submit the preliminary application to the Director General, Micro, Small and Medium Enterprises (MSME), Haryana for consideration and approval with a copy to the concerned Joint Director/Deputy Director, DIC/MDO.

 2. Diagnostic Study Report (DSR)

Post-approval of preliminary report from Director General, Micro, Small and Medium Enterprises (MSME), Haryana, the second activity in process will be to conduct diagnostic study.

3. Detailed Project Report (DPR)

The DPR is required to be prepared and submitted to Director General, Micro, Small and Medium Enterprises (MSME), Haryana for carrying out hard interventions, post approval of DSR and implementation of Soft Interventions (if required).

The DPR should be appraised by Nationalized or any Scheduled Commercial Bank. The cost of DPR appraisal will be borne by SPV and will not be included in the project cost.

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