Sfurti Book - Final

SFURTI, KVIC, Mumbai-56
1

COMPENDIUM OF
POLICIES & CIRCULARS

DIRECTORATE OF SFURTI
KHADI & VILLAGE INDUSTRIES COMMISSION
3, Irla Road, Vile Parle (W), Mumbai 400 056
Phone/Fax- 022 26713696, e-mail: sfurti@kvic.gov.in

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KUMUD JOSHI
CHAIRPERSON

I am happy to know that the Directorate of SFURTI, KVIC is
bringing out a Compendium of Policies & Circulars which will be
useful as a ready reckoner for all SFURTI implementing agencies and
beneficiaries.
The saga of Khadi was initiated by Gandhiji for Self reliance
and sustainability of spinners and weavers of India and Khadi &
Village Industries Commission has been entrusted with the
responsibility of fulfilling this role of providing succor and solace to
millions of deprived rural masses.
SFURTI programme has been proactive at the cluster level for
Unorganised Traditional Industries with the objective of eradicating
the poverty of the downtrodden with hand holding approach. I am
confident that this programme will be able to transform the lives of
rural masses with a spirit of social, moral and economic
independence, a dream set upon by Babuji- the architect of Modern
India.
Indian economy is gradually moving towards the rural sector
and it is here that the Khadi and Village Industries Commission is just
about the only player to systematically forge a climate conducive to
rural industrialisation, based on production by masses.
A lot is still to be achieved and the benefits of this programme
have to reach the rural folks living in the remotest corner of the
country devoid of opportunities. Let us work together for achieving
our common goal of rural industrialization and making this
programme a grand success.

Mumbai-56
24
th
March 2010 (KUMUD JOSHI)

3

Shri. J. S. MISHRA IAS
Chief Executive Officer, KVIC
SFURTI A GREAT EFFORT
I am pleased to note that the Directorate of SFURTI is publishing
Compendium of Policies and Circulars for the implementing agencies and
other beneficiaries of SFURTI as a ready reckoner.
The Scheme of Fund for Regeneration of Traditional Industries
(SFURTI) implementation brings a new dimension to the Khadi and Village
Industries activities taking place at Cluster level. The unorganized
traditional industries and its stake holders provided with hand holding
support and infrastructure for production, marketing and new tool for
governance through SFURTI, will definitely open a new chapter for rural
craft person and artisans in India. It will result participation in governance
as well as much more enhanced earnings on regular basis.
Apart from merely providing regular employment, the scheme aims at
improving their socio-economic conditions and productivity per artisan
through capacity building, market promotion, and other relevant
interventions.
The Products from Khadi and Village Industries Clusters are
specialised and reflect the traditional skill routed to the area concerned, as
well as match the quality and finish as per the expectations of modern
consumers. Thrust has been given on making the products market driven,
sustainable, profitable and globally competitive. The first phase of SFURTI
intervention is approaching to an end and the feedback and success of
SFURTI makes us extremely confident to take the programme further.
SFURTI has created an entirely new domine for positive and creative
interventions by government agencies and great confidence and credibility
in the minds of craftsman and artisans as well as NGOs about the
tremendous impact of the efforts in creating gainful and sustainable
employment, effective participation and sense of cooperation and empathy
among the stake holders to achieve higher social and economic goals for
the participants.
I hope this compendium will not only provide useful information about
SFURTI, but also guide the interested stake holders and NGOs to join the
efforts and make it a movement for skill upgradation, social transformation
and economic upliftment for thousands of artisans and craft persons
throughout the length and breadth of this great country.
Let us all join the efforts and take it to new heights.

Mumbai-56
24
th
March 2010 (J. S. Mishra)

4

Foreword
SFURTI, the Scheme of Fund for Regeneration of Traditional
Industries is an innovative Cluster Development Programme introduced by
the Ministry of Micro Small and Medium Enterprises: Govt. of India,
entrusting KVIC as a nodal agency, considering its vast experience and
potential in successful implementation of various Khadi and Village
Industries programmes in rural India over the years.
This compendium provides information on policies and practices of
Cluster Development initiatives being followed the by field offices of KVIC
(NAFO), Implementing Agencies (IAs), Technical Agencies (TAs, and Cluster
Development Executives (CDEs) at programme implementation level. The
good practices of mutual engagement between the facilitators, Core
Cluster Actors (spinners, weavers and artisans) and other stakeholders
underpins each initiative detailed and are bound together by commitment
and mutual trust for a common cause. KVIC is implementing the
programme focusing key areas, as
1. Time Bound Programme.
2. Result oriented, more than target oriented.
3. Trust building among the artisans and other stakeholders.
4. Increasing tangible yields and employment generating.
5. Increasing the number of working days in a year through CFC,
improved interventions and management.
6. Empowering role players of Cluster Development Programme
through defining their roles and responsibilities.

Various Cluster development initiatives such as sustainable
development, economic development, social development, health and well
being, industrial development, socio-economic upliftment, entrepreneurship
development, technology upgradation, women empowerment etc, aiming at
the artisans of Khadi (Spinners and weavers) and V.I are considered with
top priority. Convergence with other Govt. schemes and inclusive growth
are also taken up with significance in SFURTI Cluster Development
Programme. The Win-Win strategy adopted in SFURTI makes it a successful
Cluster Development Programme.
The implementation of SFURTI has become a success due to
continuous support and guidance received from the Scheme Steering
Committee, Ministry of MSME, Hon'ble Chairperson, Chief Executive Officer
and Officers of KVIC. This compendium is the outcome of combined efforts
rendered by the officers and staff of the Directorate of SFURTI and inputs
provided by Foundation for MS&ME clusters - New Delhi is appreciable.
Directorate of SFURTI would take the opportunity to thank and
acknowledge all those who contributed to this cause.

S. N. Shukla
Director SFURTI
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INDEX
No Particulars Page No
A PART: I : POLICIES
1 Office Memorandum on SFURTI 8
2 Introduction to Cluster Development Programme 16
3 Scheme Steering Committee (SSC) 17
4 Identification of Cluster by Nodal Agency 20
5 Technical Agencies (TAs) 22
6 Cluster Development Executives (CDEs) 22
7 Cluster Development Coordination Group (CDCG) 23
8 Capacity building 24
9 Financial Assistance 24
10 Release of Funds 25
11 Safety and Security of Funds 26
12 Diagnostic Study Report (DSR) 27
13 Implementation of SFURTI 29
14 Monitoring & Evaluation of Clusters 30
15 Schematic Diagrams 32
B PART: II : POLICY ANNEXURES/MOU/AGREEMENTS
16 Annexure- A : Selection Criteria of Implementing Agency 38
17 Annexure- B : Implementing agencies (Khadi&VI) 39
18 Annexure- C : Pre Diagnostic Report (Khadi&VI) & Forms X-XI 44
19 Annexure- D : Agreement Between NA and IA 57
20 Annexure- E : List of Technical Agencies 63
21 Annexure- F : MoU Between NA and TA 64
22 Annexure- G : Agreement Between CDE and IA 68
23 Annexure- H : Monitoring and Evaluation Framework 70
C PART: III : O M/OFFICE ORDER/CIRCULARS
24 Annexure- I: Office Memorandum (on State Govt. Consent) 83
25 Annexure- J : Office Order 2023 84
26 Annexure- K : Circular on Selection of CDE 104
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26 Annexure- L : Circular on Eligible IAs for SFURTI 105
27 Annexure- M : Circular on Direct Listing of IAs 106
28 Annexure- N : Circular on Bank Credit 107
29 Annexure- O : Circular on Cost of Con. /Repair CFC 116
30 Annexure- P : Circular on Cost of Imple. Agency 118
31 Annexure- Q: Circular on Nomination of Nodal Officer 119
32 Annexure- R : Circular on Support Services of TA 120
33 Annexure- S : Circular on Visit Reports 121
34 Annexure- T : Circular on Monitoring at Field Level 128
35 Annexure- U : Circular on Empowering of Artisans 133
36 Annexure- V : Circular on ISO certification of Clusters 137
37 Annexure- W : Circular on Engaging Designers 138
38 Annexure- X : Circular on Effective Utilisation of funds 139
39 Annexure- Y : Circular on Safety & Security of funds 141
Glossary
1. AAP Annual Action Plan
2. CDE- Cluster Development Executive
3. CDP- Cluster Development Program
4. CDCG- Cluster Development Coordination Group
5. CFC- Common Facility Centre
6. CAP Cluster Action Plan
7. DSR Diognestic Study Report
8. IA - Implementing Agency (KVIB, KVI Institution, NGO)
9. M&E- Monitoring and Evaluation
10. MIS Managerial Information System
11. MPR Monthly Progress Report
12. NA - Nodal Agency (KVIC)
13. NAHQ - Nodal Agency Head Quarters (KVIC Central Office)
14. NAFO - Nodal Agency Field Office ( State/ Divisional Office)
15. OM Office Memorandum
16. QPR Quarterly Progrss Report
17. SI- Support Institution
18. SSC- Scheme Steering Committee
19. SPV Special Purpose Vehicle
20. TA - Technical Agency
7

Bee-keeping (11)
Cane & Bamboo (10)
Carpentry/Wooden Works (5)
Metal (4)
Embroidery and Textiles (3)
Pottery (3)
Food Processing (3)
Agarbatti (2)
Neera (2)
Fibre Industry (1)
River Shell Button (1)
Lac (1) Horns & Bones (1)
Leather (1)
Hand Made Paper (1)
Siddha & Ayurveda (1)
V. I. CLUSTERS - 50

KHADI CLUSTERS 29

Cotton Khadi (25)
Woollen Khadi (3)
Silk Khadi (1)

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4
4
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LOCATION OF LOCATION OF LOCATION OF LOCATION OF
SFURTI CLUSTERS SFURTI CLUSTERS SFURTI CLUSTERS SFURTI CLUSTERS

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8

1. OFFICE MEMORANDUM
No. G-20014/8/2004-KVI Dated the 03
rd
October, 2005
Ministry of Agro and Rural Industries:
Government of India, Udyog Bhawan, New Delhi
Subject : Scheme of Fund for Regeneration of
Traditional Industries (SFURTI)
India has a rich tradition in traditional industries. The eco-friendly
products of traditional industries not only have great potential for growth in
production and export but can also lead to widespread generation of
employment opportunities in the rural areas of the country. With a view to
making the traditional industries more productive and competitive and
facilitating their sustainable development, the Central Government
announced the setting up of a fund for regeneration of traditional
industries, with an initial allocation of Rs. 100 crore. Pursuant to this
announcement, a Central Sector Scheme titled the Scheme of Fund for
Regeneration of Traditional Industries (SFURTI) has been drawn up and
approved at a total cost of Rs. 97.25 crore. The Scheme will be
implemented by the Union Ministry of Agro and Rural Industries (ARI) and
its organisations and institutions, in collaboration with State Governments,
their organisations concerned, non-Governmental organisations, etc. The
operational guidelines of the Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) are detailed below:
2. Definition of Traditional Industry and Traditional Industry
Clusters
(i) Broadly, traditional industry means an activity which produces
marketable products, using locally available raw material and skills and
indigenous technology.
(ii) Traditional industry cluster, in the context of this Scheme, refers to a
geographical concentration of around 500 beneficiary families of
artisans/micro enterprises, suppliers of raw materials, traders, service
providers, etc., located within one or two revenue sub-divisions in one
or more contiguous District(s).
3. Objectives of the Scheme
The objectives of the Scheme are:
(1) to develop clusters of traditional industries in various parts of the
country over a period of five years commencing 2005-06;
(ii) to make traditional industries more competitive with more market-
driven, productive, profitable and sustained employment for traditional
industry artisans and rural entrepreneurs;
(iii) to strengthen the local governance systems of industry clusters, with
the active participation of the local stakeholders, so that they are
enabled to undertake development initiatives by themselves; and
(iii) 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.
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4. Target Sectors and Potential Beneficiaries
The target sectors and potential beneficiaries will include:
(i) Artisans, workers, machinery makers, raw material providers,
entrepreneurs, institutional and private business development service
(BDS) providers engaged in traditional industries and working in selected
clusters of khadi, coir and village industries, including leather and
pottery.
(ii) Artisan guilds, cooperatives, consortiums, networks of enterprises,
self-help groups (SHGs), enterprise associations, etc.
(iii)Implementing agencies, field functionaries of Government
institutions/organisations and policy makers, directly engaged in
traditional industries.
5. Criteria for Selection of Clusters
The selection of clusters will be based on their geographical
concentration which should be around 500 beneficiary families of
artisans/micro enterprises, suppliers of raw materials, traders, service
providers, etc., located within one or two revenue sub-divisions in a
District (or in contiguous Districts). The clusters would be from khadi,
coir and village industries, including leather and pottery. The potential
for growth in production and generation of employment opportunities will
also be considered in selecting clusters under SFURTI. The geographical
distribution of the clusters throughout the country, with at least 10 per
cent located in the North Eastern region, will also be kept in view while
selecting clusters.
6. Intervention/Support Measures
These would consist of the following:
(i) Replacement of charkhas and looms in khadi sector.
(ii) Setting up of Common Facility Centres (CFCs).
(iii) Development of new products, new designs for various khadi and
village industry (VI) products, new/improved packaging, etc.
(iv) Market promotion activities.
(v) Capacity building activities, such as exposure visits to other clusters
and institutions, need-based training, support for establishment of
cluster level networks (industry associations) and other need based
support.
(vi) Other activities identified by the Implementing Agency (IA) as
necessary for the development of the cluster as part of the diagnostic
study and included in the Annual Action Plan for the cluster.
7. Scheme Steering Committee (SSC)
The Ministry of Agro and Rural Industries will be the coordinating
Ministry providing overall policy, coordination and management support
to the Scheme. A Scheme Steering Committee (SSC) will be constituted
under the chairmanship of Secretary (SSI&ARI), as detailed in Annexure
I. The SSC may co-opt representatives of industry associations, R&D
institutions and other private sector expert organisations as
members/special invitees, depending on functional needs. The SSC may
10

make intra-sectoral adjustments of activities and corresponding funds
without affecting the basic objectives and thrust of the Scheme.
8. Nodal Agencies (NAs)
The following agencies shall be designated as the Nodal Agencies for the
Scheme:
(i) Khadi and Village Industries Commission
(ii) Coir Board
Each Nodal Agency (NA) will, in turn, identify the Implementing Agencies
(IAs) based on transparent criteria to be suggested by the NAs and
approved by the SSC. The NA shall be responsible for holding and
disbursement of funds to the identified IAs and monitoring of the
Scheme under the overall supervision of the SSC.
9. Technical Agencies (TAs)
These shall be reputed national level Institutions with expertise in cluster
development methodology and shall provide technical support to the NAs
and the IAs. The responsibilities of the TAs will include assisting the NAs
in identification of clusters, conducting training of the Cluster
Development Agents (CDAs) and other officials of the IAs and NAs,
validation of cluster action plans, monitoring and evaluation, etc.
10. Implementing Agencies (IAs)
Implementing Agencies (IAs) would be non-Government organisations
(NGOs), institutions of the Central and State Governments and semi-
Government institutions with suitable expertise to undertake cluster
development. Generally, one IA will be assigned only one cluster (unless
it is an agency with State-wide coverage). The selection of IAs, based on
their regional reputation and experience of working at the grass-roots
level, will be done by the NAs, on the basis of transparent criteria to be
approved a priori by the SSC which will also finally vet the selection.
In the khadi sector, one or more institutions of 'A' category with at least
500 active spinners and weavers would be selected per khadi cluster.
There will be reasonably even geographical distribution of these
institutions across the country.
The selection of IAs for the village and coir industry sectors will be from
among good NGOs operating in the area with experience of working at
the grass roots level, particularly in rural industrialisation.
11. Cluster Development Agent (CDA)
Each IA shall identify and appoint a Cluster Development Agent (CDA),
exclusively for each cluster, who shall be located in the cluster full time
and responsible for implementation of the Scheme in the assigned
cluster. The CDAs will undergo prescribed training in cluster
development methodology to be organised by the NA through the TA.
The responsibilities of CDA shall include conducting the diagnostic study,
preparation and implementation of the annual action plans of the cluster,
promoting linkages with institutions, building the local governance
framework, etc.

11

12. Cluster Development Coordination Group (CDCG)
Cluster Development Coordination Group (CDCG) will be formed in each
cluster with the objective of involving the cluster level stakeholders in
the process of cluster development and supporting the activities of the
CDA. Representatives of the targeted traditional industry enterprises,
support service institutions, banks, State Government agencies and
others will be members of the CDCG.
13. Financial Assistance
The pattern of financial assistance under the Scheme will be as under:

Sr Component Funding Pattern
I. Khadi Sector
1. Replacement of charkhas and looms for increasing
the productivity of khadi spinners and weavers.
(Average cost - Rs. 50 lakh per cluster)
(a) Grant - 75%
(b)Beneficiarys
contribution
(Institutions)-25%
2. Common Facility Centres (CFC) for:
(i) Ready made warp units for supply of ready-to-
use warps for weaving;
(ii) Post-loom facilities, viz., dyeing and printing;
(iii)Setting up composite ready made garment
manufacturing facilities to convert fabrics into
ready-to-wear khadi products;
(iv)Product testing laboratory to enforce quality
standards; and
(v) Service and maintenance, etc.
(Average cost - Rs. 15 lakh per CFC)
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions)25%
3. Product Development & Design Intervention for:
(i) fabric designing for upholstery;
(ii) new designs for high fashion garments;
(iii) fabric development, embroidery in silk items;
and
(v) use of natural dyes, etc.
(Average cost Rs. 4 lakh per cluster)
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions)25%
II. Village Industry and Coir Industry
1. Common Facility Centres (CFC) for processing and
manufacture of village industry items like testing
equipment/laboratory to enforce quality standards
specially for processed food items, service and
maintenance and other common infrastructure.
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions)25%
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2. Product Development & Design Intervention,
viz.:
(i) development of new products specially for items
like hand bags, shoes, etc.;
(ii) new designs for pottery items; and
(iii) improved/new design for packaging, specially
for herbal and cosmetics, confectionery items.
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions)25%
III. Market Promotion Assistance for activities such
as:
(i) organization of and participation in
domestic/international exhibitions;
(ii) participation in buyer-seller meets;
(iii) renovation and upgradation of marketing
outlets; and
(iv) computerisation of sales outlets, bar-coding,
etc.
Grant 100 %
IV. Capacity Building Measures for undertaking
following activities:
(i) exposure visits to other clusters and
institutions (outside) to understand the self-help
actions, new products, technology, etc.;
(ii) need based training within the clusters (related
to global trade issues, skill development, self-
help, credit and other need based issues);
(iii) support for establishment of cluster level
networks (industry associations) in the form of
basic office infrastructure, including books; and
(iv)other need based support as emerge from the
diagnostic study.
Grant 100%
V. Cost of Implementing Agencies (IAs)
(Average Rs. 10 lakh per cluster)
Grant 100%
VI. Cost of Cluster Development Agents (CDAs)
(Average Rs. 9 lakh per cluster)
Grant 100%
VII. Cost of Technical Agencies (TAs)
(Lumpsum Rs. 4 crore)
Grant 100%
VIII Surveys and Studies
(Lumpsum Rs. 1.5 crore).
Grant 100%

The costing indicated above is only indicative. Intra-sectoral adjustment
of activities/corresponding funds would be made by the SSC without
affecting the basic objectives and thrust of Scheme and the overall costs
proposed for sanction.

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14. Formulation of Cluster Development Proposals
The cluster development proposals received from the NAs will be
considered by the SSC. The SSC shall endeavor to see that the selected
clusters are spread over the country reasonably evenly, with at least 10
per cent located in North-Eastern Region. The SSC may make necessary
adjustments/changes in the selection of clusters as well as their size and
geographical spread. The actual amount of financial assistance per
activity/measure of intervention required for development of individual
clusters in the selected segments of traditional industries might vary and
such variations could be accommodated within the overall costs, based
on careful analysis of the diagnostic studies and annual action plans, by
the SSC with the help of the NAs, TAs and IAs.
15. Linkages with Existing Schemes
As the SFURTI takes a holistic approach for cluster development, the
Nodal/Implementing Agencies concerned would be encouraged to see
that similar ongoing schemes/efforts are dovetailed with SFURTI. To
supplement and synergise, it will be seen that as far as possible, the
units in the clusters covered under SFURTI avail of benefits under
Government programmes like the REGP, PMRY or Mahila Coir Yojana so
long as they satisfy the guidelines of those programmes. This will ensure
convergence and maximising the benefits of the existing programmes.
The existing National Programme for Rural Industrialisation (NPRI) will
be subsumed within SFURTI, except those already committed. KVIC will
no longer operate its PRODIP and RISC programmes within the clusters
selected under SFURTI.
16. Implementation Sequence
The SSC will identify Technical Agencies (TAs) having expertise in cluster
development methodology for providing technical support to the Nodal
Agencies and the Implementing Agencies (IAs) undertaking cluster
development activities. With the help of the TAs, the Nodal Agencies will
identify the clusters and the IA for each cluster. Each IA will identify and
appoint a Cluster Development Agent (CDA), exclusively for each cluster,
who shall be located in the cluster full time and responsible for
implementation of the Scheme in the assigned cluster. The CDAs will
conduct the diagnostic studies in the clusters and prepare annual action
plans which, after validation, will form the basis for the development of
the cluster.
17. Release of Funds
The release of funds will be cluster specific. The funds would be released
directly to the Nodal Agencies on receipt of utilisation certificate and
depending on actual physical progress. Funds for development of
clusters will be kept in a separate account by the NAs which will be
audited.
18. Project Monitoring and Evaluation
Concurrent and post facto evaluation studies will be conducted, from
time to time, to take corrective measures. It is also envisaged to take up
14

evaluation studies of some of the clusters under SFURTI to find out the
deficiencies and drawbacks in the implementation of the Scheme.
19. This issues with the concurrence of the Ministry of Finance, Department
of Expenditure (Plan Finance II Division) vide its U.O. note no.
19(4)/PF.II/04 dated 08 September 2005 and Integrated Finance Wing,
Department of Industrial Policy and Promotion vide its Dy. no.
2010/Fin.I/05 dated 03 October 2005.

S/d-
(Ashutosh Mishra)
Director
Tel.: 011-23062745
Fax: 011-23062886

Chief Secretary (All States/Union Territories)
Copy to:
1. All States/UTs Principal Secretary/Secretary, Department of Industries
(Small Scale Industries)
2. Adviser (VSE), Planning Commission
3. Joint Secretary (PFII), Department of Expenditure, Ministry of Finance
4. Accountant General (All States/UTs)
5. Additional Secretary & Financial Adviser, Ministry of ARI
6. Chief Controller of Accounts, Ministry of ARI
7. Chief Executive Officer, Khadi & Village Industries Commission, Mumbai
8. Secretary, Coir Board, Kochi, Kerala.
9. Internal Circulation (standard list)
Constitution of Scheme Steering Committee (SSC)
Secretary, Ministry of SSI & ARI Chairman
Additional Secretary and Development Commissioner (Small Scale
Industries), Ministry of Small Scale Industries (SSI)
Member
Additional Secretary and Financial Adviser (AS & FA), Ministries of SSI
& ARI (or a representative)
Member
Adviser (VSE), Planning Commission (or a representative) Member
Principal Adviser, PAMD, Planning Commission ( or a representative) Member
Chief Executive Officer, KVIC Member
Chairman, Confederation for Promotion of Khadi and Village Industries
(CPKVI)
Member
Secretary, Coir Board Member
Representative of Chairman, State Bank of India (SBI) Member
Representative of Indian Banks Association (IBA) Member
Representative of Chairman, National Bank for Agriculture and Rural
Development (NABARD)
Member
Cluster Expert - to be nominated by Ministry of ARI Member
Joint Secretary, Ministry of ARI Member
Convener
15

2. Introduction
CLUSTER DEVELOPMENT PROGRAMME
Micro Small and Medium Enterprises play an important role in the
industrial development of our nation. This sector has contributed 40% to its
industrial output and 35% to direct exports, out of which rural artisan
based clusters producing 60% of India's manufactured exports with
significant share of employment generation, to thirteen million people. A
rural artisan cluster is geographically concentrated household units
producing handicraft/handloom products, often belong to a traditional
community, producing the long-established products for generations and
the skill of centuries old. India is known for its rural traditional industries
clusters producing variety of items including basketry, mat weaving, cane-
bamboo articles, earthenware, folk paintings, glass products, horn and
bone, leather, jewelry, metal wares, pottery, sea shell crafts, wood
carvings, etc. Majority of these clusters are in the handicrafts sector,
covered with few hundred workers. Some are so specialised in making
shawls and malmal that no other part of the world matches their skills and
global competence. , at the same time a minority of such clusters is globally
competitive.
Realising the need for conserving the traditional skills, providing
decent income for livelihood of the artisans, the Ministry of MSME, Govt.of
India has taken up this challenge and evolved a handholding model -
SFURTI : the Scheme of Fund for Regeneration of Traditional
Industries. Government and non-government organizations (GOs and
NGOs) with established potential are engaged as development agents
forming artisans groups, providing them with training for better product mix
and market linkage to break the barriers (shackles of middlemen) aiming to
uplift them for sustainable income level.
Rural artisan cluster is a sectoral and geographical concentration of
micro enterprises producing similar products, faced with common
opportunities and threats which can give rise to external economies (in
terms of specialised suppliers of raw materials, tools and implements;
sector specific skills etc.), favouring the emergence of specialized technical,
administrative and financial services which can create a conducive ground
for the development of inter-firm cooperation and specialization among
public, private and local institutions to promote local production,
innovation, collective learning, capacity building, marketing strategies and
intelligence etc.
16

3. Scheme Steering Committee (SSC) on SFURTI
The Ministry of MSME while formulating the SFURTI programme
guidelines, constituted a Scheme Steering Committee (SSC) under the
chairmanship of Secretary (MSME) with official members, experts as
members/special invitees, depending on functional needs. SSC is making
intra-sectoral adjustments of activities and sanctioning funds without
affecting the basic objectives and thrust of the Scheme. It is the apex body
wrested with approving, planning and monitoring SFURTI Cluster
Development Programme activities. Scheme Steering Committee includes
administrative, management and professional experts of national repute,
involved in project monitoring for,
a. deciding CDP deliverables, making policy decisions, resolving issues,
monitoring and providing necessary guidance and directions to the
SFURTI programme.
b. The SSC is also instrumental in providing resources, assisting in fund
sourcing, involving various state governments in SFURTI interventions
etc,.
Details of SSC meetings
a. 1
st
SSC meeting : 24
th
November 2005.
Finalized its members and co-opted other representatives/ invitees.
Proposals for setting up of clusters has to be chanalised through the
Nodal Agencies KVIC and Coir Board -towards the SSC for approval.
The main consideration for selection shall be the potential for growth
and generation of additional employment opportunities.
Consent of Concerned State Govt. has to be received for the cluster.
Institutions with known expertise and experience in Entrepreneurship
Development and Cluster Development Programme considered as
technical agency such as EDI Ahamedabad, NISIET Hyderabad, IIE
Guwahati, NIESBUD NOIDA etc.
The NAs requested to exercise on tentative identification of clusters
and Cluster Development Agents.

b. 2
nd
SSC meeting : 28
th
June 2006.
50 templates under Khadi and 44 under V.I had been placed before
the SSC. Panel of TAs had been placed before the SSC
The Action plan and Financial plan for SFURTI has been finalized
c. 3
rd
SSC meeting : 20
th
October 2006.
Approval concurred to 36 Clusters (Khadi-01,V.I-31,Coir-4)
In principal clearance of NA wise clusters for development of 104
clusters (Khadi-29,V.I-50,Coir-25).
17

In the case of identified/approved clusters, formal consent of the
state Govt. to be invariably taken by NA before taking up
implementation of the Cluster Development Programme.
d. 4
th
SSC meeting : 23
rd
May 2007.
NAs were directed to identify new clusters and institutions in the place
of dropout clusters and Implementing Agencies.
All procurements related to SFURTI cluster should be made from
authorized source with the approval of the competent authority.
Decided to enhance the wages of Khadi Artisans of SFURTI cluster
from Rs1.20/- to Rs2.40/- per hank.
Directed KVIC to prepare a list of products at district level for Market
Promotional Assistance.
Four additional Technical Agencies were approved by SSC.
DSR and AAP of four Khadi clusters and four V.I clusters were
approved by SSC. Further five Khadi clusters and eleven V.I Clusters
were approved as against the possible dropout of the existing cluster.
e. 5
th
SSC meeting : 3
rd
December 2007.
SSC emphasized the need for increasing wages of the SFURTI artisans
to minimum of Rs/- 2.00 per hank to the spinner and introduction of
E-Charkha.
NAs were requested to speed up the implementation of CDP activities
as the terminal time will be 2009-10.
AAP of 24 khadi clusters and 24 V.I clusters were placed for approval
for SSC
f. 6
th
meeting : 19
th
February 2008.
It was discussed and arrived that 25% of IA contribution of hard
component to be utilized first and then only SFURTI component of
75% amount will be released to IA.
For easy access to Working capital for SFURTI clusters, one
representative of the Bank is to be opted as a CDCG member of
SFURTI.
Financial assistance through ISEC and V.I grant of KVIC would be
made available to the clusters.
Monitoring & Evaluation Tools to be developed by MS&ME foundation
for report and analysis of cluster progress.
g. 7
th
SSC meeting : 10
th
March 2008.
Evaluation Study Report need to be forwarded to the Ministry after
every National-Zonal-State Level review meetings.
Various artisan security/welfare measures such as insurance,
activities such as medical camps, health Check-Ups, health & safety
18

device like gloves, shoes/gumboots, anti-dust masks, sound proof ear
devices etc to be provided to the artisans. As a part of the Capacity
Building Measures, necessary tool kits are to be distributed to the
artisans.
h. 8
th
SSC meeting : 29
th
August 2008.
The significance of the monitoring and evaluation tools developed by
MS&ME Foundation presented to the SSC. NAs confirmed that the tool
is operating in various clusters and the feedbacks are convincing.
Some clusters and IAs had been replaced on analyzing its
effectiveness under SFURTI CDP.
Workshed construction cost is admissible under the CFC component,
provided DPR provisions are particularly made. However the cost of
land should not be included in the DPR.
Representatives of IBA (Indian Bank Association) and SBI assured
their commitments to the cause of development of clusters and will
support the needy IA and CDE as and when needed.
i. 9
th
SSC meeting : 19
th
August 2009.
SSC approved the DSR of five CDPs moved by KVIC and permitted to
replace three clusters with new clusters. Two more VI clusters wer
approved as additional reserve clusters.
The Monitoring & Evaluation tool developed by MSME foundation to
be followed by all NAs and quarterly progress report generated as per
the same should be sent to the Ministry regularly.
NAs to get Evaluation Study of SFURTI clusters through reputed
independent agencies by March 2010, to evaluate the outcome so as
to take corrective measures.
j. 10
th
SSC Meeting 19
th
February 2010
The progress of SFURTI implementation in various KVI clusters in
terms of artisans trained, SHGs formed, CFC established, tools &
implements distributed, status of interventions, etc. was presented by
KVIC.
Notable convergence of SFURTI clusters with various State/ Central
Government schemes achieved by KVIC was discussed.
SSC informed to take all efforts for early completion of all
interventions in time and to ensure full utilization of funds.
The SSC stressed for cluster-wise review meetings at regular intervals
and to forward the outcome to the Ministry and Quarterly Monitoring
reports as per the Monitoring Tool in time.
The Diagnostic Study Reports (CAP) of one Khadi cluster and one VI
cluster against replacement were approved by SSC.
19

Through SFURTI interventions, adequate management capability to
the cluster may be attained so as to sustain even after the
discontinuation of Government Grant and the expenditure can be met
from their own resources.
Appropriate decision can be taken by the NA on safety and security of
SFURTI funds released to IAs by creating equitable mortgage/
hypothecation deed of the assets created under SFURTI.
A mid-course evaluation provided for in the scheme should be
completed by KVIC for further action for considering
extension/continuation of the scheme.

4. Identification of Cluster
Nodal Agencies (NAs) Khadi and Village Industries Commission and Coir
Board are the designated Nodal Agencies of the Scheme. They have to
identify potential Implementing Agencies (IAs) for implementation of
SFURTI with due approval of the SSC. Further, it is the responsibility of NA
for holding and disbursement of funds to the identified IAs and monitoring
of the Scheme under the overall supervision of the SSC.
Selection of a Cluster: As per the O M of SFURTI, the selection of clusters
will be based on their geographical concentration which should be of around
500 beneficiary families of artisans/micro enterprises, suppliers of raw
materials, traders, service providers, etc., located within one or two
revenue sub-divisions in a district (or in continuous districts). The clusters
would be from Khadi, Village Industries and Coir. The potential for growth
and generation of sustainable employment opportunities being prime
consideration in selecting clusters. The geographical distribution of the
clusters throughout the country, with at least 10 per cent located in the
North Eastern region, has also be kept in view while selecting clusters.
Detailed study of social and environmental status, gender inequalities,
poverty conditions, need for employment generation, level of pollution etc
lead to the selection of a cluster. Other features such as existence of critical
gaps in technology, product quality, common facilities, skill up gradation,
availability of raw material, marketing support, etc are also considered.
Primary data collection and its analysis are important to build-up significant
knowledge about decision-making in the planning, appraisal and evaluation
of Cluster Development Programmes. It includes templates and pre
diagnostic study reports.
Entity of IA: It shall be a clear legal entity, with evidence of prior
experience of positive collaboration among its members, whether formally
20

or otherwise, as the applicant of the proposed cluster development initiative
assures sound management. The proposed IA for cluster development
seeking assistance under the SFURTI must emanate from special purpose
vehicles (SPV), consisting of the actual/likely cluster beneficiaries/
enterprises organized in any legally recognized form like a KVI institution,
State Board, MS&ME organizations, institutions associated with
Central/State governments, Co-operative society, NGO, Trust, etc. The
criteria for selection of IA (annexure: A) and the list of SFURTI clusters
identified is placed as annexure: B
Pre Diagnostic study
Pre diagnostic study is conducted by NA at the field level to analyze the
data forwarded by Implementing Agency. The format devised by the
Directorate of SFURTI for the Khadi and V.I Clusters is enclosed under
annexure: C. The State/Divisional Director recommends the pre diagnostic
study reports for further action. The credentials and infrastructure of
Implementing Agencies are also verified by SO/DO concerned.
Consent of State Government for Clusters : It is a mandatory provision
by the Govt: of India, that all SFURTI clusters shall receive the consent of
concerned State Govt as a pre requisite. The Secretary, Department of
Industries and Commerce of the State Govt. is the competent authority to
issue the consent. This shall ensure the involvement of local administration
for the smooth implementation of the SFURTI CDP at cluster level and helps
in dovetailing of the schemes of the state and central governments to
strengthen the local governance system at the cluster. Through this process
the legal entity, constitution and existence of the IA are being confirmed by
the government machinery. The O.M issued in the regard by the Ministry is
enclosed as annexure:
Consent towards IA contribution: As per O.M of SFURTI Implementing
Agency has to contribute 25% funds on Replacement of Tools, CFC, Product
Development Design development etc. The same to be agreed and
executed by entering into an Agreement/ MoU between NA and IA
(annexure - D)
Direct listing of IA implementing SFURTI CDP with KVIC:
Commission in its meeting dated 27.12.2006 decided/resolved that all the
Implementing Agencies approved under the SFURTI programme, having
status of NGO may be persuaded for direct listing with KVIC. Accordingly,
direct listing shall be made by Zonal Dy. CEOs based on the specific
proposal and recommendation of State/Divisional Offices. The purpose of
direct listing is to safe guard its interest, safety and security of funds
released.
21

5.Technical Agencies (TAs)
The O.M on SFURTI spelt that Technical Agencies shall be reputed
national level Institutions with expertise in cluster development
methodology and shall provide technical support to the NAs and the IAs.
The responsibilities of the TAs will include assisting the NAs in identification
of clusters, conducting training of the Cluster Development Executives
(CDEs) and other officials of the IAs and NAs, validation of cluster action
plans, guiding in diagnostic studies, preparation of action plan, validation of
cluster action plan, supervising execution of CDP, monitoring and
evaluation, etc.
General role and responsibilities of the Technical Agency (TA) has
been indicated in the OM and in the minutes of the meetings of Core Group
/Scheme Steering Committee held from time to time. At the same time TA
can extend creative contribution in areas such as, Organizing Awareness
programmes, skill development programmes, workshops, preparing news
bulletins showcasing progress and achievements, arranging hand holding
with public/private Business Development Services (BDS) providers, out
sourcing/improving tools and equipments, developing strategies & best
practices for credit linkage, formation of SHGs, successful marketing,
financing, training modules, technology development, branding, product
catalogue preparation etc. The resource person/team shall make bimonthly
visits to the entrusted cluster in a year, having minimum four days duration
each. The Technical Agencies (list under annexure:E) are to agree and
execute the terms and conditions of association by entering into a MoU with
the NA (annexure - F)

6. Cluster Development Executive
Cluster Development Executive (CDE) is the mentor, who oversees
the implementation of the CDP successful at ground level. He is conversant
with all stake holders as accessible and a facilitator. Right from conducting
the diagnostic study, preparation of Action Plan, implementation/execution
of the same, monitoring and evaluation are the broad responsibilities.
Setting tangible and realistic goals, preparing strategies with full
participation and involvement of the stake holders, induce collective
responsibility, generate confidence and extend support are some of the
inherent qualities. As a transformer, he shall motivate the artisan and bring
up as an entrepreneur to run a micro enterprise at the end. CDE has to
create an entrepreneurial environment throughout the cluster and to enroll
more and more to the main stream. The CDE shall take up the assignment
as full time with the responsibility of successful implementation with full
22

vigor, support and in close coordination with TA and IA. He has to promote
linkages with other organizations, institutions, Govt. functionaries for
inclusive growth and convergence to build proper local governance
framework for the cluster. The CDE shall be accessible at the cluster always
and the IA needs to provide necessary infrastructure (mobile/telephone,
Computer with accessories, Internet connection, Laptop, Digital camera,
furniture etc.) to him. All CDEs will be provided with formal and in-depth
training in cluster development. On zonal basis a panel of experienced
CDEs has been prepared through open advertisement by a selection
committee headed by Dy CEO. Directorate of SFURTI has notified requisite
qualifications of CDE. The IAs can select one among them as per their
terms on contract basis for five years or termination of the project
whichever comes first.. An agreement to be executed between CDE and IA
as shown Annexure:G.
Nodal Officer
Nodal Agency has nominated a Nodal Officer for every cluster, not
below the rank of Asst. Development Officer having sufficient experience for
guiding, activating and monitoring various cluster activities. A circular
no.KVIC/SFURTI/policy/6505/2008-09 dated 24.11.2008 has been issued in
this matter (Annexure : ). Nodal Officer will visit and report the cluster
status to the higher level.

CDCG is the committee formed under the chairmanship of District Collector
or his/her representative with State/ Div. Director, Rep of TA,
Chairman/Secretary of IA, concerned Govt. officials of the district, LDM
(Banker), DDM-NABARD, Rep of KVIB, Reps of Artisans, Reps of nearby
Institutions, technocrats and CDE (who will be the Convener of the Group).
This team will validate the DSR and Action Plan and forward to the NAHQ
(Director SFURTI) through concerned State/Div Office for the approval of
KVIC.
The CDCG will normally meet once in a quarter or as and when
required. It will be the responsibility of the CDE to present all the activities
being implemented at the cluster level, before the CDCG. Also, it is needed
to obtain the concurrence of the CDCG in advance towards the activities to
be undertaken at cluster from time to time in due course. The proposed
system of working of CDCG will encourage trust building at the cluster
among stakeholders. In turn, the CDCG will also undertake the
performance appraisal of the CDE. NA Head Office will scrutinize the DSR
with Action Plan of each cluster and place before the Scheme Steering
23

Committee for approval. Implementation of the CDP will commence only on
receiving approval of the DSR and Action Plan from the SSC.

8. Capacity Building
As an HRD tool, training programmes on cluster development help the
stake holders to build up innovative and traditional skills, to practice
improved technologies, to use advanced processes, to apply market
intelligence, to adopt new models of public-private partnerships etc for the
sustainable and inclusive growth. Case study/ visit of successful models,
replicating such practices, makes them confident and competent.
Providing training to the stake holders in relevant and potential areas being
a main task of the TAs. The modules of training programmes are to be
planned and executed systematically for the success of SFURTI CDP.
Various capacity building measures are undertaken in SFURTI Cluster
level with 100% financial assistance. They include awareness camps, skill
development programmes, visits, etc. For the higher level, KVIC is
arranging sensitization workshops, orientation training programmes to
Cluster Development Executives, Implementing Agencies, Officers and Staff
of KVIC, training on Monitoring and Evaluation of SFURTI Clusters etc.
Through these programmes, the 'Resource Persons' are equipped with
inputs on Cluster Development Methodology leading to Entrepreneurship
Development among the cluster stake holders. Curriculum and
Areas/subjects covered in the SFURTI training are included as per pattern
recommended by MS& ME foundation.

9.Financial Assistance

As per the O M, release of funds under SFURTI will be cluster specific,
to the Nodal Agencies on receipt of utilization certificate based on physical
progress. Funds for development of clusters will be kept in a separate
account by the NAs which will be audited.

Financial Plan: The head-wise maximum financial assistance
available to a cluster is as under. At the same time, financial sanction per
cluster is limited to the provisions of DSR and AAP, duly approved by SSC,
Govt. of India.

24

Financial Assistance per cluster
Khadi V.I.
Sr Components
SFURTI
Grant
IAs
Share
Total SFURTI
Grant
IAs
Share
Total
1 Capital Cost
(75:25)
a)Replacement
of Equipments
b)Common
Facility Centre
c)Product
Development

37.50

11.25

3.00

12.50

3.75

1.00

50.00

15.00

4.00

22.50

3.00

7.50

1.00

30.00

4.00
2 Market
Promotional
Assistance
15.00 - 15.00 15.00 - 15.00
3 Capacity
Building
Measures
15.00 - 15.00 15.00 - 15.00
4 Cost of I.A.s 10.00 - 10.00 10.00 - 10.00
5 Cost of CDEs 9.00 - 9.00 9.00 - 9.00
6 Cost of TAs 4.00 - 4.00 4.00 - 4.00
Total 104.75 17.25 122.00 78.50 8.50 87.00

Further Rs 1.50 lakhs/cluster will be made available for survey and studies

The head wise allocation of fund is broadly made towards hard
components (capital cost items), soft components (capacity building
measures-cluster & market promotional assistance, cost of IA, Cost of CDE)
and NA Operated Funds (capacity building measure-NA level, Cost of TA,
Surveys and Studies etc).

10. Release of Funds:
SFURTI funds are sanctioned on cluster specific approach by the SSC.
The funds will be released to each cluster based on approval of SSC and
compliance of pre requisites as per check list, opening of ESCROW A/c.
Subsequent release of funds will be considered on verifying the physical and
financial status. This will link up with the achievement under Annual Action
Plan, duly validated by CDCG.
Agreement between the Implementing Agency and Nodal agency
describes in detail on modus operandi regarding implementation of SFURTI.
Objective of association, terms and conditions of assignment, extent of
25

financial assistance, release of funds, contribution by Implementing Agency,
utilization of funds to the cause, monitoring and reporting aspects are
clearly spelt out. The role and responsibilities of each role player is clearly
mentioned in various agreements/ undertakings formulated for the scheme
and the same need to be strictly complied. Release of funds will be effected
after processing the demand made vide Form X and Form XI.
Considering the importance of utlilisation of SFURTI funds exclusively
for the purpose for which it has been released, a Circular has been issued
for compliance: Annexure: X

ESCROW Account
Funds released shall be placed in an Escrow A/c opened by IA and the
account operation to be made invariably by three signatories jointly
involving CDE, IA representative and the State Director or his
representative. All the fund transactions under SFURTI programme shall be
made through ESCROW Account only and no other mode of
accounts/transactions permitted. Escrow accounts are specific purpose
accounts opened for the project duration, permitting multiple transactions
in a day, like that of a current account. The funds released and utilized
through the A/c will be regulated by the laid down terms and conditions by
all the parties in terms of the mutual agreement and specific to particular
head of allocation.
The transactions made through ESCROW Account are legal, valid,
enforceable and binding of their performance in terms of respective
obligations/duties envisaged. The entry in to an ESCROW agree
performance of by the parties of its obligations/duties under the terms and
conditions of the scheme, and shall not/will not violate the orders of
regulatory authority having jurisdiction and control over the parties and all
organizational documents of the parties involved. Further, the ESCROW
joint operators are required to make all arrangements contemplated herein,
legal, valid and enforceable have been obtained or made, and are in full
force and effect till the arrangements are terminated in accordance with the
laid down agreements.

11. Safety and Security of Funds:
The Ministry is releasing funds to NA, depending on actual physical progress
and on producing utilization certificate and in turn NA is effecting the
disbursement of funds to the identified Implementing Agencies (IAs). NA is
responsible for effective implementation and monitoring of the scheme
under the overall supervision of the SSC. Hence the safety and security of
26

funds released to various IAs such as KVI institutions, NGOs and State
Boards are to be maintained properly. As per the prevailing practice, funds
released to the institutions are secured either by Equitable Mortgage (EM)
of immovable properties or Hypothecation of immovable goods so as to
ensure that in the event of institution defaulting, the funds are protected by
way of security available. The circular issued vide FA cell/ Security of
funds/08-09/ dated 11.02.2009 reaffirms the same. While considering the
representations received from field offices of NA and IAs (VI clusters)
regarding their inability in making EM/HD to the extent of total funds
(including soft components such as capacity building, market promotion
interventions, service charges etc), the Commission has decided/ resolved
to make it applicable suitably to the continuing and new Implementing
Agencies of SFURTI, that
1. All the institutions already undertaking Khadi and/or V.I. Program, to
whom funds are sanctioned under SFURTI, should create equitable
mortgage of the assets created out of the grants sanctioned by the
Commission to secure the loan already sanctioned to it.
2. For the new IAs associating for Village Industry clusters, the Equitable
Mortgage/Hypothecation Deed need not be insisted at the preliminary
stage of implementation. However, they must create EM and execute
Hypothecation Deeds in respect of movable and immovable assets
created under SFURTI grant. An undertaking from the Implementing
Agencies in this respect must be obtained in the initial stage before
sanctioning the grants.
3. The implementing agencies must also furnish proper UC after utilizing
the funds for the purpose for which the same was sanctioned.
4. The existing security norms are to be followed by implementing agencies
that belong to State Government / Khadi Boards, since their assets
belong to the State Government and funds are utilized subject to
State/AG audit.
5. All movable assets created out SFURTI funds are to be hypothecated to
KVIC.
Dipicting the above, a circular has been issued is placed as annexure: Y

12. Diagnostic Study Report
Cluster is a complex socio economic environment of various role players,
with its own strength and weakness. A preliminary investigation leads to
multi layer structure of the cluster which makes the detailed study more
comprehensive. It is important to gather and analyze the same for yielding
better results. The diagnostic study provides a broad framework, on socio
27

economic environment of the cluster, most effective leverage points of
intervention, a baseline for trust building, monitoring and evaluation.
Under the guidance and inputs of Technical Agency, cluster diagnostic
study is imitated by the Cluster Development Executive(CDE). Diagnostic
Study will be conducted in each cluster with the objectives of finding the
SWOT, exploring the value chain, understanding the local institutional
capacities, compiling baseline data, identifying new development agenda
and vision for the cluster. The interactive process will enable the cluster
actors to appreciate their mutual interdependence and challenges they face.
Such participatory assessment exercise helps in triggering trust among the
cluster actors. In the Cluster Diagnosis process, interviewing of stake
holders, cluster mapping, various data collection leading to deliverables,
preparation of Annual Action Plan etc are employed.
Preparation of Action Plan: Based on the study, analysis of data leads to
preparation of annual action plan for the cluster, through a participatory
validation process. Various stakeholders depending on their mandate,
relevance, expertise and resources, will associate with initiatives of the
action plan. Initiatives that will ease the structural limitations to focus, such
as non-availability of credit, lack of product features (quality, finish, product
mix), outdated technology, inadequate skill, lack of market linkages, etc.
hindering the development process of the cluster. These initiatives may be
of short term, medium term and long term, depending on the need
emerged from the diagnostic study. The annual action plan is a customized
document of the given cluster, flexible and dynamic so as to incorporate the
felt needs that emerge during the implementation process. The plan will
clearly identify the enterprise-level and cluster-level intervention, which are
necessary and appropriate to the common vision of the cluster.
Trust building among the stakeholders is important, for which immediate
strategies would be aimed with short-term initiatives for smaller groups of
enterprises supported by local institution. Such initiatives will trigger the
process and provide the opportunity for progressive action on capability-
building and assuming larger responsibilities.
Networking provides a framework for all the stakeholders to address
common challenges and exploit common opportunities jointly. It will
preserve autonomy of each player, thus providing incentives for
entrepreneurship, innovation and risk taking. So there will be focus on
facilitating the emergence of networks of enterprises-both horizontal and
vertical, mutually benefiting commercial activities such as common sourcing
of raw materials, marketing, engagement of consultants, common facilities,
etc. Such networks as a result of economics of scale will help in reducing
28

the costs of the business operations and enable better supply chain
management. The system will also lead to evolve sub-contracting
arrangements for better integration of enterprises in value chain as well as
to improve utilization of existing capacities.
Strengthening industry-institutions linkages for meeting the needs, as
identified during the diagnostic study, will develop to win-win situations.
Such linkages will also facilitate synergy, convergence and preferential
channelization of dispersed resource available with various institutions at
cluster level leading to sustainable impact, while optimizing the use of the
resources. Cluster level common facilities centers such as testing lab,
design studio, exhibition centre, common work sheds, plants/machinery etc
(based on needs identified in the diagnostic study) bring more life and
interaction among them. Establishment of suitable business development
services (BDS) will help them to avail of external technical support to
improve their business and continue even after SFURTI intervention.
Exposure visits to successful clusters will facilitate the stake holders
(entrepreneurs, their networks, associations, partner institutions CDEs) of
the clusters in acquiring good development practices, better technology,
work practices and products mix/ideas. Such visits may also be helpful in
technology transfer and establishment of mutually beneficial commercial
working relationships between the clusters. Joint learning workshops,
exchange of experiences, documentation and dissemination of best
practices ensure the objectives of capacity building of the stakeholders.
Group dynamics: Cluster Development Programme promotes the concept
of Unity is Strength. Formation or linkage to Artisans Guilds, Cooperatives,
Consortiums, Network of Enterprises, SHGs, Enterprise Associations etc,
helps in acquiring high morale and confidence among the stake holders. As
a member among the group, they can enjoy more freedom and security
than moving alone.
13. Implementation of SFURTI
It is the sequence of activities that bring the realization of the objectives set
in the vision statement of a Cluster and the process that strengthens good
governance mechanism in the functioning of the Cluster. Proper
implementation is possible through annual action plans, up- scaling of
activities, creating governance mechanism, adhering to short, medium
and long term goals, drawing objectives, forming group activities &
intermediaries, creating linkage with others, developing strategies for
sustenance, sequencing activities, developing exit strategy for the CDE etc.
(Schematic Diagram on page 33)

29

Linkages & convergence with Existing Schemes
As the SFURTI takes a holistic approach for cluster development, the
Nodal/Implementing Agencies concerned would be encouraged to see that
similar ongoing schemes/efforts are dovetailed with SFURTI. To supplement
and synergies, it will be seen that as far as possible, the units in the
clusters covered under SFURTI avail of benefits under Government
programmes like the PMEGP or Mahila Coir Yojana so long as they satisfy
the guidelines of those programmes. This will ensure convergence and
maximising the benefits of the existing programmes.
Cluster Development Programme envisages economic development as
well as social development of the artisans and the all cluster actors.
Convergence /dovetailing of various schemes of State Govt. and Central
Govt. is permitted a part of Cluster Development Programme for further
hand holding of the artisans. Schemes such as Janshree Bima Yojna (KVIC),
Workshed Scheme (KVIC, REDP (NABARD), MAHIMA (NABARD), SUDHA
(NABARD), SDI (NABARD), ARWINDA (NABARD), VDP (NABARD), GRAM
SHILPA MELA (CAPART), SMS (WDC), TEPP (DSIR,DST), STED
(NSTEDB,DST), STEP (S&S,DST), NSFDC, WDC, NAREGA (DRDA), TSC
(DRDA) etc comes in way. Through the convergence /dovetailing of
schemes the IA and CDE can leverage the Schemes of all Central and State
Government and at the same time ensure that no duplication shall
ever happen while incurring fund utilization under
linkage/convergence of other schemes.

Costing of KHADI Implements
SFURTI Implementing Agencies of khadi Clusters provide leverage for
replacement of Charkhas and looms. Procurement of new and improved
implements permitted as per the terms policy letter no DKPM/ Costing/
Implements/ 06-07/, issued by the Directorate of KPM/ Instrumentation
from the list of approved manufacturers. Institutions selected under SFURTI
can place the supply order with 25% of the cost as their own share for
replacement of charkhas and looms. No advance will be paid by KVIC,
however remaining share of 75% will be released from SFURTI funds on
receipt of the same at clusters.

13. Monitoring & Evaluation
Monitoring and Evaluation (M&E) is the management tool, feeds
information into the process of maximizing the impact, cost effectiveness
and sustainability of projects. Results geared towards proving its impact to
the donors and governments. It gauge the work undertaken by a project or
30

programme with respect to the targets set out. Monitoring gears towards
recording project activities on an ongoing basis during the life of the project
and Evaluation provides feedback of the same during the project and post
set up. It appraises both efficiency (success in achieving the targets set
within the agreed DSR/budget/time frame) and effectiveness (degree to
which project activities successful in attaining anticipated improvements in
key impact indicators income, employment, empowerment, etc.). It is
essential in the implementation of Cluster Development Programme, as it
proves the stock position of cluster deliverables at a given time, broadly,
i. to keep track of the various project activities, whether being
implemented are on schedule and in line with the budget/schedule.
ii. to analyze the degree to which these activities are translating
into the anticipated outputs.
iii. to measure the effect of outputs on the projects key impact
indicators levels of income, employment, empowerment, etc.
Precisely,
iv. Implementing Agencies being the nerve centre of the cluster
implementing activities, the level of achievement of CDP goals,
targets, and backward linkage activities to be available at the end of
NA regularly.
v. Status of assignments undertaken by Cluster Development
Executives (CDE), level of supply of raw materials, various training
and skill upgradation programmes, socio economic status of the
artisans, linkage to safety and security mechanisms etc to be
accessible by NA.
vi. Provides idea on involvement of Technical Agencies (TAs) in
guiding and developing the cluster as per the perspective plan, their
role has become very crucial for overall development of the cluster.
vii. Gives a picture on extent of fund flow and monitoring made at
the level of State / Divisional Offices and Zonal Offices.
Various proformas are developed for regular and periodical reporting
of the status of SFURTI CDP by Cluster Development Executives, Technical
Agencies, Implementing Agencies, State/Divisional Offices and Zonal Offices
to head quarters of NA. SFURTI is utilizing the Monitoring & Evaluation tool
developed by the renounced Foundation for MS&ME: New Delhi, which
is enclosed as annexure H. Looking upon the importance and priority given
to the programme by the Govt. of India, it is absolute essential from the
part of all the concerned to concentrate with full vigor and ensure that
desired goals are reached in letter and spirit. It is the duty that overall
objectives of the programme are attained in improving the socio economic
31

status by generating sustainable employment and remunerative wages to
the artisans associated with the cluster throughout the year.

Schematic Diagrams

Identification of Cluster (NAFO)
Processing of proposals
Collection of preliminary information
on Cluster ( Pre diagnostic Study)
Agreement between IA & NA
Consent of State Government,
Consent towards 25% Contribution &
Direct listing of (NGOs)
Selection of TAs (SSC)
Approval of Proposal by SSC
Agreement with TA (NA)
Appointment of TA
Training of TAs (UNIDO)
Selection of CDE (with the help of NA , TA& IA)
Appointment of CDE by IA
Training of CDE (TA)
Training of IAs (TA)
Release of pre-op expenses to Cluster (NA)
such as Cost of CDE, Cost of TA
IMPLEMENTATION SEQUENCE IMPLEMENTATION SEQUENCE - - SFURTI SFURTI

32

Conducting Diagnostic Study (TA/CDE/IA)
Preparation of Action Plan (CDE/TA/IA)
Approval of DSR & Cluster Action Plan (SSC)
Formation of CDCG & Validation of
Cluster Action Plan by CDCG (CDE/TA/IA)
Training of CDE (TA)
Formation of Consortiums (CDE/TA/IA)
Implementation of Annual Action Plan (CDE/IA/TA)
Procurement of Capital Goods (CDE/IA/NA/TA)
Implementation at Cluster Level (CDA/TA/IA)
MONITORING (NA) through NAFO
Release of funds to Cluster (NA)
As per the approved AAP
EVALUATION (SSC) EVALUATION (SSC) EVALUATION (SSC) EVALUATION (SSC)
IMPLEMENTATION SEQUENCE IMPLEMENTATION SEQUENCE - - SFURTI SFURTI
Contd..

33

Approval of DSR & Cluster Action Plan (SSC)
Obtaining demand from concerned NAFO
In FORM X
Release of funds to Cluster ESCROW A/c
through NAFO Cost of IA, Cost of CDE
Consent of towards 25% contribution
Execution of Agreement with IA
Appointment of Technical Agency
State Govt. Consent
Appointment of Cluster Development Executive
Direct listing of NGOs with KVIC
Issuance of Fund Release Advice to NAFO
Release of funds to TA
Cost of TA
Approval of Financial Sanction (SFC) &
Admn. Approval from Commission
Validation of Action Plan (SSC)
Approval of actual financial plan (SFC)
Release of funds to Cluster ESCROW A/c through NAFO
Towards CFC, CBM, MPA, Cost of IA, TA, CDE
Obtaining demand from Concerned NAFO
In FORM - XI
Issuance of Fund Release Advice to NAFO
FUND FLOW CHART SFURTI

34

Sensitization Workshop on SFURTI Sensitization Workshop on SFURTI
Orientation training on CDP for officers of KVIC Orientation training on CDP for officers of KVIC
Orientation training on CDP for Staffs of KVIC Orientation training on CDP for Staffs of KVIC
Orientation training on CDP for Implementing Agencies Orientation training on CDP for Implementing Agencies
Trainings to Technical Agencies on implementation of SFURTI Trainings to Technical Agencies on implementation of SFURTI
Training to Field officers of KVIC on implementation & Monitorin Training to Field officers of KVIC on implementation & Monitoring of g of
SFURTI programme SFURTI programme
Trainings of Cluster Development Agents by Technical Agencies Trainings of Cluster Development Agents by Technical Agencies
- - Phase I, II & III Phase I, II & III
Training to cluster beneficiaries on Technology, Marketing, Skil Training to cluster beneficiaries on Technology, Marketing, Skill l
Development etc. as desired in the Action Plan Development etc. as desired in the Action Plan
Training to New beneficiaries add on to cluster as per required Training to New beneficiaries add on to cluster as per required need. need.
1
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TRAINING INTERVENTIONS IN SFURTI TRAINING INTERVENTIONS IN SFURTI
Trainings to Implementing Agencies on implementation of SFURTI Trainings to Implementing Agencies on implementation of SFURTI
O
n

g
o
i
n
g
O
n

g
o
i
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35

CLUSTER DEVELOPMENT EXECUTIVE
CLUSTER DEVELOPMENT
COORDINATION GROUP
Monitoring implementation of Action Plan,
Assessment of operational efficiency,
financial utilisation, planning
CLUSTER
NODAL AGENCY FIELD OFFICES (NAFO)
KVIC ZONAL OFFICE
DTE OF SFURTI: KVIC HQ
MONITORING MONITORING - - SFURTI SFURTI
TECHNICAL AGENCY
Monthly Cluster Level Review involving all
Cluster Actors ( Nodal Officer, CDE, IA,
Artisans, TA if available etc)
Physical as well as Financial Review on
Bi- Monthly Basis & MPR-MIS Reporting
Consolidation of MPRs / MIS
( as per MSME Tool ) on Quarterly Basis
Consolidation of Zonewise MIS ( as per
MSME Tool ) on Quarterly Basis
SSC: MSME
Monitoring of Implementation Activity on
monthly basis (initially) , modification to
implementation strategy, if any

36

PART - II
ANNEXURES ON POLICIES

37

Annexure:A1

Criteria for selection of Implementing Agencies (Khadi)

1. The implementing agency to be a directly aided institution of the KVIC or
that of State Khadi & V. I. Board.
2, The implementing agency to be an A category institution classified as such
by the KVIC.
3. The implementing agency to have a standing in the field of Khadi work for
minimum period of last 20 years and be engaged in implementing Khadi
programme in a composite manner i.e. spinning, weaving and marketing of
Khadi.
4. The scale of the activities of the implementing agency or group of
implementing agencies in the selected cluster to be :
(a) a minimum of 500 full time artisans registered with implementing
agency up to 31/3/2005. For N.E. States 250 fulltime artisans ;
(b) production level of Rs.1.00 crore with reference to 2004-05. In the
case of North-East States Rs.0.50 crore. Projections at the end of 5
years to be Rs.2.00 crores and Rs.1.00 crore for the Non-N.E. Sttes &
N.E. States respectively.
(c) Sales turnover of Rs.1.50 crores with reference to 2004-05. In the
case of North East Sttes Rs.0.75 crore. Projections at the end of 5
years to be Rs.3.00 crores and Rs.1.50 crores for non-N.E. States &
N.E. states respectively.
(d) Adequate land or buildings to accommodate infrastructure envisaged
in the SFURTI project.
5. The implementing agency to be able to contribute its share of 25% to the
project cost.
6. The implementing agency to replace the low productivity spinning and
weaving implements with improved spinning implement (8 spindle NMC) and
weaving implement (improved looms).
7. The implementing agency to employ one trained supervisory spinning
worker over every 50 NMC spinners and one trained supervisory weaving
worker over every 10 weavers so that the quality of yarn and Khadi is not
compromised in the interest of marketability of the finished product.
8. The implementing agency to draw its raw-material requirement from the
nearest Central Silver Plant of the KVIC or its local godown.
Annexure:A2
Criteria for selection of Implementing Agencies (V.I.)

1) The Implementing Agencies (V.I. Clusters) would be non government
organizations(NGOs), institutions of Central and State Governments and semi
government organisations and Khadi & V.I. institutions of the KVIC or KVIB..
2) The Implementing Agencies should have suitable expertise to undertake
Cluster Development Programme with minimum experience of 5 years in the
field of organizing directly or promoting village / rural industries activities.
3) Normally one IA will be assigned only one cluster(unless it is an agency with a
statewide coverage)
4) The Implementing Agency should have regional reputation and experience of
working at grass root level.
38

5) The IAs should have personnel trained in the cluster development by UNIDO or
other national level institutes like EDI, Ahmedabad, NISIET, Hyderabad etc.
6) The IAs should be preferably located in the cluster region and operating in the
area of operation of the cluster.
7) The IAs should have experience to facilitate business development service by
linking up with the service providers related to marketing, export, finance,
HRD, technology, etc.
8) They should have experience in arranging tie-up for public private partnership
in providing appropriate technology and other common facilities.
9) The implementing agencies should be willing to galvanize the beneficiary
artisans in the cluster into contributing 25%n of cost of project components
wherever prescribed in the SFURTI.

Annexure:B1
List of Khadi Clusters under Implementation.
Sr State* Name of Cluster* Implementing Agency* Technical Agency*
1 Jammu &
Kashmir
Bandipora Woollen
Khadi Cluster
Kashmir Khadi Sangh,
Srinagar
National Institute for
Entrepreneurship & Small
Business Development, Noida
2 Jammu &
Kashmir
Gudura Woollen
Khadi Cluster
Bharatiya Khadi
Ashram, Srinagar
Business Development
3 Haryana Kurukshetra
Cotton Khadi
Cluster
Khadi Gramodyog
Mandal, Kurukshetra
4 Punjab Amritsar Woollen
Khadi Cluster
Kshetriya Shri Gandhi
Ashram, Amritsar
5 Rajasthan Bassi Khadi Cluster Khadi Gr. Saghan Vikas
Samiti, Bassi
Indian Institute of Crafts &
Design, IICD, Jaipur
6 Rajasthan Jhalawar Khadi
Cluster
Vinoba Seva Samity,
Jaipur
Indian Institute of Rural
Management (IIRM), Jaipur
7 Uttarakha
nd
Haldwani Khadi
Cluster
Ashram, Haldwani
Entrepreneurship Development
Institute of India (EDI),
Gujarat
8 Uttar
Pradesh
Tikarmafi Cotton
Khadi Cluster
Ashram, Sultanpur
Gujarat
9 Uttar
Pradesh
Gorakhpur Cotton
Khadi Cluster
Ashram, Gorakhpur
Gujarat
10 Uttar
Pradesh
Raebareli Cotton
Khadi Cluster
Swaraj Ashram,
Sarvdoaya Nagar ,
Kanpur
Gujarat
11 Uttar
Pradesh
Attaria Khadi
Cluster
Gramodyog Sansthan,
Sitapur (U.P. KVIB)
Gujarat
12 Gujarat Cotton Khadi
Cluster
Saurashtra Rachnatmak
Samiti, Rajkot
Institute of India (EDI), Gujarat
13 Mahara
shtra
Swami Ramanand
Tirth Khadi Cluster
Marathwada Khadi
Samiti, Nanded
Gujarat
14 Karnataka Belur Khadi Cluster Karnataka Khadi Gr.
Sangh, Hubli
National Institute for Micro,
Small and Medium Enterprises
Hyderabad
39

15 Karnataka Hebbelly Cotton
Khadi Cluster
Dharwad Tl Hebballi KS.
Sangh, Dharwar
Hyderabad
16 Andhra
Pradesh
Srikakullam Cotton
Khadi Cluster
Gram Swarajya
Sangham, Srikakullam
Hyderabad
17 Andhra
Pradesh
Sircilla Khadi
Cluster
Metpally Khadi Gr.
Pratishtan, Metpally
Hyderabad
18 Kerala Thalappilly Cotton
Khadi Cluster
Kerala Khadi & VI
Association, Cochin
NABARD Consultancy Services
(NABCON), Mumbai
19 Kerala Thiruvananthapura
m Khadi Cluster
Kerala K&V.I. Board,
Thiruvananthapuram
NABARD Consultancy Services
(NABCON), Mumbai
20 Tamil
nadu
Sulur Khadi
Cluster
Tamil Nadu Khadi & V.
I.Board, Chennai
Hyderabad
21 Tamil
nadu
Coimbatore Khadi
Cluster
Avarampalayam
Savodya Sangh,
Coimbatore
SIPPO, Madurai Tamilnadu
22 Tamil
Nadu
Karakudi Khadi
Cluster
Karidkudi Sarvodaya
Sangh, Kandanoor
SIPPO, Madurai Tamilnadu
23 Pondi
chery
Pondichery Khadi
Cluster
Pondichery KVIB &
Pondichery S.S.
Hyderabad
24 Bihar Nawada Khadi
Cluster
Gram Nirman Mandal,
Gaya
Xavier Institute of
Management, Bhubaneshwar
25 Jharkhan
d
Palamu Khadi
Cluster
Chotanagpur Khadi Gr.
Sansthan, Tiril
Xavier Institute of
26 West
Bengal
Behrampore
(Jangipur) Cotton
Khadi Cluster
Bharat Khadi Sewak
Sangh, Murshidabad
Xavier Institute of
27 West
Bengal
Malda Khadi
Cluster
Diamond Silk Khadi
Society, Malda
Xavier Institute of
28 Assam Mukalmua Silk
Khadi Cluster
Barkhetri Unnayan
Samity
Indian Institute of
Entrepreneurship, Guwahati
29 Nagaland Dimapur Khadi
Cluster
Nagaland Khadi & VI
Sangh
Indian Institute of
Entrepreneurship, Guwahati

(* existing State, Cluster, IA, TA may change during implementation as per
KVIC/SSC decision based on review of progress and monitoring feedback)

Annexure: B2
LIST OF V.I. CLUSTERS UNDER Implementation
No State Cluster Name Implementing Agency* Name of the T.A*
1 Jammu
&
Kashmir
Baramulla Ajas
Namadha Gabba
Embroidery Cluster
Hurmukh Khadi Gram Udyog
Sansthan, 90 feet Road,
Soura, Srinagar
Business Development,
Noida
2 Jammu
&
Kashmir
Ladakh Sea
buckthorn cluster
Ladakh Autonomous Hill
Development Council, Leh
P.O., Ladakh, J&K,
Defence Institute of High
Altitude Research
(DIHAR), Ledakh
3 Jammu
&
Kashmir
Kathua Beekeeping
cluster
Khadi Gramodyog Sewa
Sansthan, 268, Sarwal
Mohalla, Jammu
Entre: & Small Business
Development, Noida
4 Himach
al
Una Plant Fiber
Cluster
Society for Advancement of
Village Economy (SAVE), 1
st
Entre: & Small Business
40

Pradesh Floor, Basoli Mode, Rakker
colony, Dist. Una
Development, Noida
5 Rajasth
an
Dausa Pottery
cluster
Kshetriya Khadi Gramodyog
Samiti, Post. Dausa
303303, Rajasthan
Indian Institute of Crafts
& Design, IICD, Jaipur,
Rajasthan
6 Haryana Radour Handmade
paper cluster
Khadi Ashram, Radour, Ram
Nagar, Karnal, 132001,
Haryana
Kumarappa National
Handmade paper
Institute, Jaipur
7 Haryana Bhiwani Wooden
Beads cluster
Gramin Sewa Mandal, Daya,
153- Prem Nagar, Daya,
Hissar,
Management (IIRM),
Jaipur
8 Punjab Patilala Phulkari
cluster
The Patiala Handicraft W. Co
Ind Society Ltd., 36 Ragbir
Marg Model Town, Patiala
Indian Institute of Crafts
& Design, IICD, Jaipur,
Rajasthan
9 Punjab Wooden handicraft
cluster, Hoshiapur
The Rural Environmental
Enterprises Development
Society, #1116, Sector 33C,
Chandigarh,
Noida
10 Punjab Punjabi Desi Juti
cluster
Regional Centre For
Entrepreneurship
Development, RCED, S.C.O
Sector 35-B, Chandigarh
Management (IIRM),
Jaipur
11 Uttara
khand
Chamoli Bee
Keeping Cluster
Ksetriya Shri Gandhi Ashram,
Gauchar, Chamoli Dist.,
Uttarakhand
Noida
12 Uttar
Pradesh
Moradabad Horns
& Bone products,
Cluster
Rudayan Gram Vikas Ashram,
Ramlila Maiddan Kot Purvi
Sambal Distt Mooradabad..
(Met)
Entrepreneurship
Development Institute of
India (EDI), Gandhinagar,
Gujarat,
13 Uttar
Pradesh
Pratapgarh Amla
Processing Cluster
(luw)
Pushpanjali Gramodyog Seva
Samithi, Plot no.B-7,
Industrial Area, Sukpal
Nagar, Pratapgarh, U.P.
Mahatma Gandhi Institute
for Rural Industrilia -
lisation, Manganwadi,
Wardha Maharashtra
14 Uttar
Pradesh
Kannauj Agarbathi
cluster
Chakor Gramodyog Sewa
Sansthan, Gursahaiganj,
Kannauj, U.P. Lucknow
Entre & Small Business
Development, Noida
15 Uttar
Pradesh
Saharanpur Honey
processing Cluster
Mahalaxmi Khadi Gramodyog
Sanstha, Saharanpur
Central Bee Research &
Training Institute, Pune
16 Chhatisg
arh
Ektal Bell Metal
Cluster
Chhattisgarh Handicraft
Development Board, 35 C,
Ravi Nagar, Raipur
Entrepreneurship
India (EDI), Gujarat
17 Madhya
Pradesh
Balaghat Bamboo
crafts Cluster
M P State Minor Forest (Tr. &
Dev.) Coop Federation Ltd.,
Khel Parisar, 74, Bunglaws,
Indira Nikunj, Bhopal
Indian Institute of Forest
Management, , Bhopal
18 Madhya
Pradesh
Hoshangabad Lac
Cluster
Jilla Vanopaj Sangh,
Hoshangabad, M P
Indian Institute of Forest
Management, Bhopal M.P.
19 Maharash
tra
Sindhudurg Food
Processing Cluster
Konkan Nisarga Manch,
House No.1752, Abhinav
Nagar no.2, Kudal, Dist.
Sindhudurg
Entrepreneurship
20 Maharash
tra
Gadchiroli Pottery
Cluster
Gramodaya Sangh, At. Post
Tal. Bhadravati, Dist.
Chandrapur,
Micro, Small and Medium
Enterprises Hyderabad
21 Maharash Amaravathi Pragathi Bahuudeshya Central Bee Research &
41

tra Wardha
Beekeeping Cluster
Sanstha, Weekly Market,
Pulgaon, Wardha-442302
22 Gujarat Gujrat Neera
Cluster
Gujarat Neera & Talpadarth
Gramodyog Sangh, At & Post
Saronda, Via Umergaon,
Valsad
Entrepreneurship
23 Gujarat Traditional
Jewellery Cluster
Gokul Vikas Trust, 2214,
Manek Chowk, Ahmedabad,
Gujarat
Entrepreneurship
24 Andhra
Pradesh
Devara Konda
Tribal Jewellery
cluster
Village Devt Society, Plot No.
386, Christian Colony,
Vanastalipuram, Hyderabad
25 Andhra
Pradesh
Hindupur Agarbatti
Cluster
Shree Neelakantewara Khadi
Silk Gramodyog Samastha,
4/271, Melapur, Hindupur
BASIX, Hyderabad
26 Andhra
Pradesh
Chittoor Wood
Carving Craft
Cluster
Kalasrusti, H.No.8/288, P.N.
Road, Kothapeta,
Srikalahasti, Dist. Chittoor
BASIX, Hyderabad
27 Karna
taka
Coorg Beekeeping
cluster
Coorg Progressive
Beekeepers Coop. Society
Ltd., Bhagamandala, Medikeri
Taluk, Kodagu Dist,
28 Kerala Kalpetta Bamboo
Craft Cluster
Uravu Indigenious Science &
Technology Study Center,
Thrikkaipetta P.O. Wayanad
District
NABARD Consultancy
Services (NABCON),
Bandra (East), Mumbai
29 Kerala Kozhikode
Beekeeping Cluster
Kozhikode Sarvodaya Sangh,
P.B. No. 216, S.M. Street,
Calicut 673 001
30 Tamil
Nadu
Nachyarkoil Brass
Metal Production
Cluster
Thanjavur West Sarvodaya
Sangh. 28, Giri Road,
Srinivasapuram, Thanjavur
31 Tamil
Nadu
Siddha & Ayurveda
Cluster
Lakshmi Seva Sangam
Gandhigram Trust,
Gandhigram, Dindigul
32 Tamil
Nadu
Kanyakumari
Pottery Cluster
Centre for Social
Development, Kulala Street,
Thirunainarkurichy,
Ammandivilai (P.O),
Kanyakumari Dist
National Bank for
Agriculture and Rural
Development, NABARD
Consultancy Services
(NABCON), Mumbai
33 Orissa Khurda Bamboo
cluster
Mahatma Gandhi Khadi &
Gramodyog Samiti
Xavier Institute of Mana
gement, Bhubaneshwar
34 Orissa Luburising Palm
Gur Cluster
Orissa state Palmgur
Cooperative Federation Ltd.,
Bhubaneshwar
Xavier Institute of
Management,
Bhubaneshwar
35 West
Bengal
Murshidabad Cane
& Bamboo cluster
Satish Sarbodaya Varati,
137, B.B. Sen Road,
Berhampore, Murshidabad
Xavier Institute of
Management,
Bhubaneshwar
36 West
Bengal
24 Parganas Bee
Keeping cluster
West Bengal Bee Keepers
Association, 21 Ma Saroda
Road, Napara Barasat, North
24 Parganas
Xavier Institute of
Management,
Bhubaneshwar
37 Bihar Muzaffarpur
Beekeeping Cluster
Tirhut Dugdh Utpadak
Sahakari Sangh Ltd. Kolhua
Dist. Muzaffarpur
Xavier Institute of
Management,
Bhubaneshwar

42

38 Bihar Mehsi- River Shell
Button Cluster
Champaran Association of
Rural Development,
Mojijheel, Chaklaloo P.O.,
East Champaran - 845426
Xavier Institute of
Management,
Bhubaneshwar
39 Jhar
khand
Singhbum
Beekeeping cluster
Singhbhum Gramodyog Vikas
Sansthan, Nimdih, Chaibasa
Xavier Institute of
Management,
Bhubaneshwar
40 Assam Barpeta Cane &
Bamboo Crafts
Cluster
Anchalik Gram Unayan
Parishad, Village & P.O.
Jaina, Dist. Barpeta
Indian Institute of
Entrepreneurship,
Guwahati. Assam
41 Assam Cane & Bamboo
Cluster
Gauripur Vivekananda Club,
Gauripur W/No.3, P.O.,
Gauripur, Dist Dhubri
Indian Institute of
Entrepreneurship,
Guwahati. Assam
42 Tripu ra Gandhigram Crafts
Processing Cluster
Tripura Bamboo and cane
Development Center
Gandhigram (Near Tehsil
Office), Agartala
North Eastern Industries
Consultants Ltd., Agartala
43 Tripu ra Tripura Bee
keeping Cluster
Tripura Khadi & V.I. Board North Eastern Industries
Consultants Ltd.,
Agartala
44 Manipur Manipur Carpentry
cluster
Volunteers for Rural Health &
Action (VORHA), Lamding,
Wangjing 795 148 Thoubal
Manipur
Indian Institute of
Entrepreneurship, Assam
45 Mani
pur
Pallel Cane and
Bamboo cluster
People' Action for Rural
Development Organisation,
Pallel, Chandel, Manipur
Indian Institute of
46 Mizoram Cane and Bamboo
Cluster
Hnam Chhantu Pawl, C/o R.
T. Hnema Building, Electric
Veng, Aizawl
Indian Institute of
47 Megha
laya
Bamboo &
Handicrafts Cluster
Womens Group & Handi craft
Multipurpose Co-op Ltd.,
Madankynsaw, Mawkyndeng,
Jaintia Hills Dist. Meghalaya
Indian Institute of
48 Arunach
al Prad
esh
Traditional Dress
Making Cluster
Arun Kutir Udyog Cooperative
Society, Post. Ziro, 791120,
P.B. No. 150, Dist. Lower
Subansiri
Indian Institute of
49 Naga
land
Mon Beads making
cluster
Konyak Nyupuh Sheko Khong
(Konyak Citizen Women
Organisation) Mon town, P.O.
Indian Institute of
50 Sikkim Sikkim Beekeeping
cluster
State Institute of Rural
Development, Karfectar,
Jorethang, South Sikkim
Indian Institute of

(* existing State, Cluster, IA, TA may change during implementation as per
KVIC/SSC decision based on review of progress and monitoring feedback)
43

Annexure: C1
FORM I (KHADI)
Proposal for Development of Khadi Cluster under
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

State Office

1. Name of the cluster :

( Name of the cluster may specifically prefix the location and activity of the cluster. e.g.
Amritsar woolen Khadi Cluster )
2. Implementing Agency :

Postal Address
Contact Person
Telephone No. Mobile
No.

Fax No. E.mail

3. Location of the Cluster :
(Indicate the location where the maximum concentration of activity / artisans located)
Name of the Block
Name of the District

4.
Area covered by the cluster :
(Indicate list with specific names of the District, blocks under the district & villages to be
covered under the cluster)
Name of the
District
Name of
the Block
Villages covered

5. A Brief on Activity of the cluster :
(Brief about the present on going activity of the cluster viz. spinning, weaving,
processing etc.)

6. No. of Institutions covered :
(Indicate the list of the institutions to be covered under the cluster. In principal, the
cluster must constitute with at least 7 to 15 Khadi institutions)
Affiliated to
( Pls tick ) Sr.
Name of Institution

Address
Area of
Operation
KVIC KVIB

44

7. Major Products produced in the cluster :
( Pls. Indicate the products in rank which has major productions
( Quantity : Lakhs Sq. Mtrs , Value : Rs. in Lakhs)

Production

year Year year Sr Products
Quantity Value Quantity Value Quantity Value

8. Major Products sold in the cluster :
( Pls. Indicate the products in rank which has major Sales)
( Quantity : Lakhs Sq. Mtrs , Value : Rs. in Lakhs)
Sales

9. Accumulated Loss/Profit of the Cluster for last three years :

Sr Year
Accumulated Loss
(Rs. in Lakhs)
Accumulated Profit
(Rs. in Lakhs)

10. Details of Implements available in the Cluster :
(Pls indicate the no. of Charkhas and looms available in the cluster)

No. of Charkhas No of Looms
1 Traditional 1
Traditional

2 NMC 2 Improved
11. Details of Manpower available in the Cluster :
A) Artisans : ( Persons in Nos.)

Spinners Weavers Dyers & Printers Others

B) Employees :
Production Staff Marketing Staff Management Staff Others

12. Raw material & Service Providers available in the Cluster :
a) Raw Material Suppliers :
Name of the Raw material Supplier
Type of Raw
material
Available in
the cluster
Available outside
the cluster

45

b) Other Service Providers :
Name of the Other
Service Providers
Type of Service
Available in
the cluster
Available outside
the cluster

(Pls. Tick if the provider / supplier is inside or outside the cluster. indicate the type
of service provides by the service provider e.g. dyers, printers etc)
13. Arrangements for forward linkages :
Particulars
Value of Sales
(Rs. in Lakhs)
1. Retail sales through own Bhawans/Bhandars
2. Whole Sales to Bulk buyers
3. Sales through Exhibitions
4 Export
5 Any other

14.
Scope for Khadi industries in the area : (Brief information on possible village
industries activities which has potential for growth)

15.
Has a substantial fraction of cluster institutions recently :
( Pls tick ( ) for Yes or No .Also give a brief clarification in the box below, if yes )
Sr. Particulars Yes No
New initiatives taken for introduction of new designs and/or
diversified their products

1

New market channels explored ? 2

Any innovation in product / raw material supply is introduced?
3
.
Have the Employees/Artisans undergone skill up gradation
training in last 2 years

4
.

16.

What Common / Join activities proposed by Khadi institutions involved in the
cluster :
( Pls brief of the joint activities organized like dyeing & printing, readymade garment
production, creating common facilities, Skill upgradation trainings, setting up common
marketing ventures for domestic as well as export markets etc. )

Sr. Activities
1
2

3
4

46

17. Whether the institutions in the cluster are willing to form a consortium to
implement the joint action proposed :
(Pls indicate Yes/No)

18. Likely scope for increase in Employment specially Women/SC,ST,OBC etc :
(Pls indicate no. of employment in next 5 years)

Total No. of employment will include
Sr Year
Scope for Total
No. of
employment Women SC,ST,OBC Others

19. Whether the cluster can continue its activity without incentives like Rebate,
Subsidy etc.:
(Pls Brief the issue)

20.

Analysis of common opportunities/threats in the cluster:
(Pls brief on specific factors for its selection )

21. Basis for selection and recommending this cluster under SFURTI:

( DIRECTOR )

47

Annexure: C2
FORM II (VI)
Proposal for Development of Village Industries Cluster under
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

State Office

1. Name of the cluster :

( Name of the cluster may specifically prefix the location and activity of the cluster. e.g.
Amritsar woolen Khadi Cluster )
2. Implementing Agency :

Postal Address

Contact Person

Telephone No.

Mobile No.
Fax No. E-mail
3. Location of the Cluster :
(Indicate the location where the maximum concentration of activity / artisans located)
Name of the Block

Name of the District

4.
Area covered by the cluster :
(Indicate list with specific names of the District, blocks under the district & villages to
be covered under the cluster)
Name of the
District
Name of the
Block
Villages covered

5. A Brief on Activity of the cluster :
(Brief about the present on going activity of the cluster )

6. No. of Institutions covered :
(Indicate the list of the institutions to be covered under the cluster. In principal, the
cluster must constitute with at least 15 to 20 Units)
Affiliated to
( Pls tick )
Sr.
Name of Institution

Address
Area of
Operation
KVIC KVIB

1

48

7. Major Products produced in the cluster :
( Pls. Indicate the products in rank which has major productions)
( Quantity : Lakhs Sq. Mtrs , Value : Rs Lakhs)
Production
Sr Products
year Year year
1.
2.
3.
4.
5.
6.
TOTAL

8. Major Products sold in the cluster :
( Pls. Indicate the products in rank which has major Sales)
( Quantity : in Lakhs , Value : Rs. in Lakhs)

Sales
1.
2.
3.
4.
5.
6.
Total
9. Accumulated Loss/Profit of the Cluster for last three years :

Sr Year
Accumulated Loss
(Rs. in Lakhs)
Accumulated Profit
(Rs. in Lakhs)
1 2003-04

2 2004-05

3 2005-06

10. Details of Machines and Tools available in the Cluster :
(Pls indicate the brief about the machines and tools available in the cluster)

49

11. Details of Manpower available in the Cluster :
A) Artisans : ( Persons in Nos.)

Skilled Artisan Unskilled Artisans Others

B) Employees :

Production Staff Marketing Staff Management Staff Others

12. Raw material & Service Providers available in the Cluster :
Raw Material Suppliers :
Name of the Raw material Supplier
Type of Raw
material
Available
in the
cluster
Available
outside the
cluster

Other Service Providers :
Name of the Other Service
Providers
Type of
Service
Available
in the
cluster
Available
outside the
cluster

(Pls. Tick if the provider / supplier is inside or outside the cluster. indicate the type
of service provides by the service provider e.g. dyers, printers etc)
13. Arrangements for forward linkages :
Particulars
Value of Sales
(Rs. in Lakhs)
1. Retail sales through own sales outlets

2. Whole Sales to Bulk buyers

3. Sales through Exhibitions

4 Export

5 Any other

14.
Scope for any other village industries in the area :
(Brief information on possible village industries activities which has potential for
growth)

15.
Has a substantial fraction of cluster institutions recently :
( Pls tick ( ) for Yes or No .Also give a brief clarification in the box below, if yes )
Sr. Particulars Yes No
New initiatives taken for introduction of new designs and/or
diversified their products

1

New market channels explored ? 2

50

Any innovation in product / raw material supply is introduced?
3

Have the Employees/Artisans undergone skill upgradation
training in last 2 years

4

16. What Common / Joint activities proposed by cluster units involved in the cluster :
( Pls brief of the joint activities organized creating common facilities, Skill upgradation
trainings, setting up common marketing ventures for domestic as well as export markets
etc. )
Sr. Activities
1

2

3

17. Whether the institutions in the cluster are willing to form a consortium to
implement the joint action proposed :
(Pls indicate Yes/No)

18. Likely scope for increase in Employment specially Women/SC,ST,OBC etc :
(Pls indicate no. of employment in next 5 years)

Total No. of employment will include
Sr Year
Scope for Total
No. of
employment Women SC,ST,OBC Others
1 2006-07
2 2007-08
3 2008-09
4 2009-10
5 2010-11

19. Whether the cluster can continue its activity without incentives like Govt.
Subsidy etc.:
(Pls Brief the issue)

20. Analysis of common opportunities/threats in the cluster:

21. Basis for selection and recommending this cluster under SFURTI:

(DIRECTOR)

51

Annexure: C3
Pre Diagnostic Study of Cluster : Check list

Part -1
1 Name of the Program/industry
2 Name of the Cluster
a. District
b. Block/Mandal
c. Village
3 Artisan Concentrated Areas
Name of Villages No of Artisan Families

4 Whether the artisans are working of there own
5 Whether the Artisans are served by any NGOs
located in the cluster area, if so give details

6 Nearest urban market
7 Who markets the products of artisans
a. Artisan themselves
b. NGOs
c. Govt Agencies
d. Private Traders
e. Exporters
f. Others
8 Level of Technology used by the artisans
a. Traditional
b. Improved
9 Annual Income Level of Artisans from present
occupation

10 Observation and specific remarks of the team
conducted pre-diagnostic study

11
Signature

Signature

Part -II

Remarks and recommendation of
State / Divisional Director

Signature

Remarks and recommendation of
Zonal Dy CEO

Signature

52

Annexure: C4

Credential Report of the Institution

Name & address of the Institution
No Particulars Information
1 Pending Vigilance Case
2 Serious Audit Objections
3 Misappropriation of funds
4 Production of spurious Khadi/VI
5 Major Objections/ irregularities registered/
noticed

6 Major default in the recent past year
7 Administrative disputes
8 Problematic status
9 Category covered
10 Profit details
11 No of artisans actually covered
12 Details of activity already undertaken
13 Actual status of production and sales of the last
three years with copy of Audited Reports

14 Details of loan availed by the institution
15 Whether the institution is ready to have
Equitable Mortgage with KVIC

16 How many years of experience in the activity
17 Position of Hypothecation Deed
18 AWFT status actually artisans covered
19 Reporting of statements in time
20 Specific views of State/Divisional Director
21 Any Other Relevant Details

State /Divisional Director
53

Annexure: C5
SFURTI : FORM - X : CHECK LIST
(applicable for initial release of Soft Components to the cluster)
I. Name of the Cluster :
a) Name of Implementing Agency :
b) Status of IA : Directly Aided institution / NGO /
State Govt. Agency
Pls state if any
c) Validity of registration :
From . To .
c) Execution of Agreement with IA : Executed / Not Executed
d) Resolution by the Implementing
Agency
: Favorable / non- favorable
II.
e) Consent of IA towards its 25%
contribution towards components of
the scheme, wherever applicable
: Consent extended / not extended
III. State Govt. consent towards cluster : Obtained / not yet obtained
IV. Name of Technical Agency for cluster :
a) Name of Cluster Development
Agent appointed by IA
:
V.
b) Date of execution of appointment
agreement between IA and CDA
:
VI. Bank Account Details
( as per Agreement with IA, all the
funds will be operated through a
separate ESCROW bank account)
: Bank account No:
..
Name of the Bank:

Name& Designation of Signatories :
1. .
2. .
3. .
FUNDS RECOMMENDED FOR RELEASE

Sr.no. Activity Amount

Remarks :
Prepared by Recommended by
Designation NODAL OFFICER (SFURTI)
KVIC, State / Divisional Office
APPROVED FOR RELEASE

DIRECTOR
State / Divisional Office KVIC,..
DATE :-
54

Annexure: C6
SFURTI : FORM - XI : CHECK LIST
(for release of further funds to the cluster)
RELEASE DEMAND FOR THE YEAR
A. General Details :
1. Name of the Cluster :
2. Name of Implementing Agency :
3. Name of Technical Agency :
4
Name of Cluster Development
Agent
:
5 Name of Beneficiary institutions : Attach list of institutions in the consortium

B. ACTION PLAN
1 Validation of Action plan by SSC : Yes / No
2
Financial plan of the cluster as
per validated action plan
:
Give the details in the table mentioned
below towards the financial sanction for five
years as per the validated action plan of the
cluster

Year
IAs Contribution
(25%)
SFURTI Grant
(75%)
Total
2009-10
2010-11

SANCTION DETAILS:
1. Total amount of Imprest received by the
SO/DO towards the cluster (as on date)
:
2. Total amount of funds released to the
cluster as on date out of the total
imprest
:
3. As on date balance fund available with
the SO/DO as imperest.
:
4 As on date funds available in the bank
account of the cluster
:
5. As per the SFC Sanction, funds
sanctioned to the cluster for the current
year i.e. .
:
ACTIVITIES TARGETED TO BE UNDERTAKEN DURING THE YEAR
1
2

DEMAND DETAILS:
1. Total amount demanded to release to the
cluster
( also give the head-wise break-up in the
table given below)
:

55

Amount Demanded
Budget Head SFURTI
Grant
IAs
Contribution
TOTAL
1. Capital Cost
a) Replacement of Charkha
b) Common Facility Center
c) Product Development
2. Market Promotional Assistance
3. Capacity Building Measures
Cluster

4. Cost of Implementing Agency
5. Cost of CDA

2 Has IA deposited its share to the
cluster back account (Pls Mentioned
the amount )
Amount :
Date of deposition :

FUND UTILISATION DETAILS :
1. The amount of last release to the
cluster
( also give the head-wise break-up
in the table given below)

Amount Released
Budget Head SFURTI
Grant
IAs
Contribution
TOTAL
Amount
Utilized
Amount
unspent
1. Capital Cost
a) Replacement of Charkha
b) Common Facility Center
c) Product Development
2. Market Promotional
Assistance

3. Capacity Building Measures
Cluster

4. Cost of Implementing
Agency

5. Cost of CDA

G Recommendations /Observations of CDA :-
H Recommendations /Observations of T.A..

FUNDS RECOMMENDED FOR RELEASE
Sr.no. Activity Amount

Remarks :
Prepared by Recommended by
Designation NODAL OFFICER (SFURTI)
KVIC, State / Divisional Office
APPROVED FOR RELEASE
DIRECTOR State / Divisional Office.
DATE :- Signature (with Stamp)

56

Annexure: D
Agreement executed between Nodal Agency and Implementing Agency
AGREEMENT
( Executed between the State / Divisional Director KVIC & Implementing agencies
on the stamp paper as per the stamp act rules existing in the respective states)

THIS AGREEMENT is made at Mumbai on ______day of ............. 2006 between
the KHADI AND VILLAGE INDUSRTRIES COMMISSION, a statutory body constituted under
the Khadi and Village Industries Commission Act, 1956 and having its office at 3, Irla Road,
Vile Parle (W), Mumbai-56 hereinafter referred to as "KVIC" (which expression shall unless
it be repugnant to the context or meaning thereof be deemed to mean and include its
successors and assigns) of the ONE PART and
............................................................................, a
...established/ registered under .. Act and
having its registered office at . hereinafter referred to as the "Implementing
Agency"(which expression shall unless it be repugnant to the context or meaning thereof
be deemed to mean and include its successors and assigns) of the OTHER PART.
Preliminary : WHEREAS :
A) KVIC has been constituted to devote itself to the development and propagation of
Khadi and Village Industries in the country.
B) The Govt. of India, with a view to making the traditional industries more
productive and competitive and facilitating their sustainable development, has
announced the setting of a fund for generation of traditional industries, by name
Scheme of Fund for Regeneration of Traditional Industries (SFURTI).
The Scheme shall be implemented by the Ministry of Agro and Rural Industries
and its organizations and institutions in collaboration with State Govt., their
organization concerned, Non- Governmental Organizations etc
C) The Govt. of India has identified the KVIC and the Coir Board as the Nodal
Agencies (N.A), who shall in turn identify the implementing agencies (I.A) in a
transparent manner with the approval of the Scheme Steering Committee(SCS)
constituted by the Ministry of Agro and Rural Industries.
D) The primary objectives of the Scheme are :
a. Develop clusters of traditional industries in various parts of the country over a
period of five years
b. Make traditional industries more competitive with more market driven, productive,
profitable and sustained employment for traditional industry artisans and rural
entrepreneurs;
c. Strengthen local governance system of industry cluster;
d. Build up innovated and traditional skills; improved technologies advance
processing, market intelligence, new models of public-private partnership.
E) The SFURTI, with a view to achieve the aforesaid objective, envisages the
development of certain selected activities of village industries by developing
clusters, marketing channels and forum, market facilitation centres,
strengthening of Sales outlet , capacity building, and design up-gradation etc.
F) The KVIC, being the Nodal Agency is desirous of implementing the said Scheme
through Implementing Agency (I.A.) such as registered institutions/societies
under KVIC, Institutions of Non Government Organisations (NGOs), Institutions
of Central Govt. and State Govt. and Semi Govt. Institutions, etc.

G) The Implementing Agency, being actively involved in the activities for the
development of Khadi/ village industries /rural employment, possesses the
requisite expertise to implement the said Scheme and desirous of undertaking
the Scheme and accordingly approached the KVIC for undertaking the
Cluster programme (hereinafter referred to as the said Programme) under the
said Scheme on the terms and conditions herein after appearing.

57

NOW THIS AGREEMENT WITNESSETH:
1. Terms and conditions:
The assignment shall include and comprise the following:-

a) The Institution/NGO shall work as the Implementing Agency for the identified cluster at

b) The Implementing Agency shall during the implementation of the said Cluster
programme be provided from time to time equipments/ machines / tools /working
capital and other infrastructure facilities to be used as a common facility to the
beneficiaries in the cluster in a phased manner. The Implementing Agency shall
take proper care and account of these assets and keep them in good condition and
in trust till the completion of the said program and thereafter, as required.
c) The assets provided at the Common Facility Centre as aforesaid shall always be
made available for inspection by any officials of Govt. of India, Ministry of ARI /its
authorized agents or agencies and KVIC.
d) The assets provided at the Common Facility Centre shall always be the property of
KVIC during the continuance of the said programme and thereafter, unless
otherwise specified in writing by the KVIC.
e) The Implementing Agency shall keep identification marks on the body of the assets
and appropriate name boards for the said programme.
f) The Implementing Agency shall keep separate records for the said programme .
g) The Implementing Agency shall send quarterly reports and returns regularly
regarding progress of the said programme to the KVIC.
h) The Implementing Agency may levy service charges for utilisation of Common
Facility Centres assets at the rates fixed in consultation with KVIC. The services of
the Common Facility Centre shall be made available /restricted to those agencies/
artisans and entrepreneurs undertaking the rural development programme of the
KVIC/ Govt. of India /State Govt.
i) Implementing Agency shall identify and appoint a Cluster Development Agent
(CDA) who shall work in co-ordination with Nodal Agency KVIC and the Cluster
Development Coordination Group constituted for the purpose of involving the
cluster level stake holders in the process of cluster development.
j) The Cluster Development Agent (CDA) appointed by the Implementing Agency shall
be responsible for the implementation of the programme and is responsible to
conduct diagnostic studies in the clusters and prepare annual action plan etc.
k) Implementing agencies shall be provided with the Technical Support by the
Technical Agencies expert in cluster development methodology.
l) The Implement Agency shall ensure to implicate the cluster development
methodologies / strategies formulated / prescribed by the KVIC / Technical
Agencies from time to time or as finalised mutually and formulate the consortium of
the beneficiaries/cluster level stakeholders wherever applicable towards the
productive prospects, benefits and life of the cluster.
m) The duration of the programme shall be for a period of 5 years from the date of
execution of this agreement.
n) That Implementing Agency shall jointly and severally be liable to KVIC for
performance of the work including performance of services and its obligations
including that of its associates, contractors / sub-contractors under the agreement.
o) That the Implementing Agency shall agree and acknowledge that the time of
completion of the project, as set forth in this agreement, is the essence of the
contract and Implementing Agency shall accordingly undertake the performance of
work hereunder with the objective of achieving the project implementation and
completion within the prescribed time schedule.
p) The Implementing Agency shall abide by the contents of the O.M. No. G-20014
/8/2004-KVIC dated 3.10.2005 issued by the Govt. of India, Ministry of ARI and the
Amendments, if any made from time to time. The said O.M. shall also form part of
this agreement.

58

2. Financial Assistance:
a) The Financial assistance from the KVIC shall be in the form of provision for setting
up of Common Facility Centres (CFC) for processing and manufacture of village
industry items like testing equipment/laboratory to enforce quality standards
specially for processed food items, service and maintenance and other common
infrastructure and development of new products specially for items like hand bags,
shoes, etc.; new designs for pottery items; and improved/new design for
packaging, specially for herbal and cosmetics, confectionery items; marketing
support and other infrastructure facilities within the budget approved and specified
in the SFURTI.
b) The specific form of assistance as per the approved final action plan shall be
communicated during the period of the programme from time to time to the
implementing Agency.
c) The amount sanctioned shall be released in suitable manner in installments as per
the approved action plan and as decided by KVIC.
d) The Implementing Agency shall maintain separate accounts for the amount received
from the KVIC and shall allow the auditors and /or the representatives of the KVIC
/Ministry of ARI/ A.G to inspect and audit such accounts at any time.
e) The Implementing Agency shall maintain separate records for recording the details
of the assets acquired out of the KVIC funds and the assets provided by the KVIC
both movable and immovable and shall send periodical report of the same to the
KVIC. All the assets acquired out of the KVIC funds are the property of the KVIC
and the Implementing agency shall not create any charge or encumbrance over the
same and shall use the same only for the purpose for which it has been acquired.
f) The Implementing Agency shall furnish the utilization certificate within three
months from the receipt of grant in the form of kind and audited statement of
accounts pertaining to the grant received from the KVIC at the end of each financial
year.
3. Release of fund:

a) That the fund/grant will be released for each cluster and will be restricted to the
sanction made by the Govt.of India from time to time.
b) That in case of Khadi cluster; replacement of Charkhas and looms, common facility
and product design intervention assistance will be provided in the form of kinds with
firm order from the supplier alongwith 25% contribution of the implementing
agency to the actual cost of the equipment/s at the time of purchase order to the
authorised supplier. The remaining 75% payment will be made by KVIC after
receiving confirmation of delivery of equipments/machineries/charkhas/looms at the
destination.
c) That in case of Village Industries, the common facility centre, product development
and design intervention, machineries and equipments assistance will be provided in
the form of kind and not in cash. The implementing agency should place confirm
order with 25% advance of the actual cost of the machinery/equipments at the time
of placing the order to the authorised supplier of machinery/equipments and the
remaining 75% will be paid by the KVIC after receiving confirmation intimation of
the machineries from the authorised supplier at the destination.
d) That the other release of fund except machinery/equipment for common facility
centre, charkha and looms replacement and machinery for product and design
intervention are to be operated by (ESCROW) joint account i.e. by the State
Director of the KVIC or his authorised representatives, CDA and a representative of
the implementing agency. The funds utilisation will be under the overall supervision
of implementing agency in coordination with Cluster Development Agent Executives.

4. Contribution of Implementing Agency:

59

The Implementing agency shall be able to contribute or willing to contribute from
beneficiaries towards 25% share of the cost the components as beneficiaries'
contribution wherever necessary as mentioned hereunder

I. Khadi Clusters
1. Replacement of charkhas and looms for increasing the
productivity of khadi spinners and weavers.
(Average cost - Rs.50 lakh per cluster)
(a) Grant - 75%
(b) Beneficiarys
contribution(Institutio
ns) 25 %
2. Common Facility Centres (CFC) for:
(i) Ready made warp units for supply of ready-to-
use warps for weaving;
(ii) Post-loom facilities, viz., dyeing and printing;
(iii) Setting up composite ready made garment
manufacturing facilities to convert fabrics into
ready-to-wear Khadi products;
(iv) Product testing laboratory to enforce quality
standards; and
(v) Service and maintenance, etc.
(Average cost - Rs. 15 lakh per CFC)
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions) 25 %
3. Product Development & Design Intervention for:
(i) fabric designing for upholstery;
(ii) new designs for high fashion garments;
(iii) fabric development, embroidery in silk items; and
(v) use of natural dyes, etc.
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions) 25 %
II. Village Industry clusters
1. Common Facility Centres (CFC) for processing and
manufacture of village industry items like testing
equipment/laboratory to enforce quality standards
specially for processed food items, service and
maintenance and other common infrastructure.
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions) 25 %
2. Product Development & Design Intervention, viz.:
(i) development of new products specially for items
like hand bags, shoes, etc.;
(ii) new designs for pottery items; and
(iii) improved/new design for packaging, specially for
herbal and cosmetics, confectionery items.
(a) Grant - 75%
(b) Beneficiarys
contribution
(Institutions) 25 %

5. Utilization of funds:
a) It is expressly agreed that the outlay sanctioned hereunder shall be utilised only for
the purpose of the assignment and the funds shall not be diverted for any other
industry, purpose, assignment or use.
b) Implementing Agency shall channelise the funds in a separate bank account
specifically earmarked for the assignment (and not pool it in other finances).
c) In the event of any misutilisation of funds ( like diversion for any other purpose
other than for which it is granted, misappropriation etc.), the implementing agency
shall be bound to refund the entire amount released to it by the KVIC along with
interest and penal interest at the rates as may be decided by the KVIC.
60

d) The funds earmarked for the implementing agency shall be utilized for the
development of cluster.
6. Monitoring mechanism:
a) Implementing Agency shall and the Cluster Development Agent shall work in co-
ordination with the KVIC and also the Cluster Development Coordination Group.
b) The KVIC and or Govt. of India, Ministry of ARI shall depute its representatives or
officials to assess the progress of the programme from time to time.
c) In the event of unsatisfactory progress of the programme, the KVIC shall have the
right to discontinue the programme. There upon the KVIC shall be at liberty to
entrust the said activity to any other person or agency to conduct and carry the
same afresh or to continue the same further from where the activity was
discontinued and for this purpose KVIC shall be at liberty to utilise all data, reports
and technique collected and developed by the Implementing Agency on the
termination of the activity as aforesaid.
d) That in case of abandonment, or earlier termination of the project / work without its
completion, the total advance paid to Implementing Agency but unutilized shall be
returned forthwith by the Implementing Agency with interest (at the rates
prevailing in the Nationalized Banks) to KVIC.

7. Progress Report:
Implementing Agency shall give KVIC annual progress report on the ongoing
programme. This report shall cover (i) work done for the previous year (ii) future
activities and strategies (iii) details of financial expenditure incurred during the year
under broad heads along with the supporting documents.

8. End of programme report and certificates:

At the end of programme Implementing Agency shall send (i) comprehensive report of
the programme, outlining its achievements (ii) utilisation certificate with relevant
statements and enclosures for audit purposes, including a detailed statement of assets
created

9. Completion of the Project :
The project shall be deemed to have been successfully completed on submission of the
final report by Implementing Agency and its acceptance by the Scheme Steering
Committee.

10. Handing over assets at the end of programme period:
At the end of the programme, Implementing Agency shall prepare a comprehensive list
of assets (movable and immovable) purchased/created and ensure that they are
handed over to KVIC, if so directed. Assets may also be handed over during period of
programme depending upon the nature of the assets. Relevant copy of purchase or
other documents, if any, should also be handed over by Implementing Agency to KVIC
at the time of transfer, if so directed.

11. Rectification of defaults:
If in the opinion of KVIC there is a major breach by Implementing Agency of the terms
herein contained or for any reason Implementing Agency is not in a position to continue
the assignment, KVIC shall have a right to bring to the notice of Implementing Agency
the breach or the fact of its inability to successfully continue the assignment and upon
the failure of Implementing Agency to rectify the breach or successfully continue the
assignment within 45 days thereof, this agreement shall be terminated by KVIC
whereupon Implementing Agency shall be removed from the assignment forthwith and
shall refund the entire amount released by the KVIC.

61

12. No liability to KVIC:
There shall be no principal and agent relationship between KVIC and Implementing
Agency. The KVIC shall not be held liable for acts of omissions or commissions of
Implementing Agency resulting in claims and damages from third party against KVIC.
The Implementing Agency, at all times indemnify the KVIC against any claims in
respect of any damages or compensation payable in consequences of any accident or
injury sustained by its (Implementing Agency) employee or the employee of the sub-
contractors or by any other third party resulting from or by any transportation /
conveyance or act or omissions conducted by or on behalf of the Implementing Agency.
The Implementing Agency, shall all times indemnify KVIC against all claims / damages
etc for any infringement of any intellectual property rights (IPR) while providing its
services under the project.

13. Amendment to Agreement:
Implementing Agency and KVIC may make amendment to this Agreement, as per
requirements, by mutual consent, in writing.
14. Notification of change:
The Implementing Agency shall notify the KVIC of any material change in their status,
shareholding or that of any guarantor of the Implementing Agency, in particular, where
such change would impact on performance of obligations of Implementing Agency
under this agreement.

15. Force Majeure:
Neither party shall be held responsible for non-fulfillment of their respective obligations
under this agreement due to exigency of one or more force majeure events like floods,
fire etc. provided on the occurrence of assation of much events the affected shall give
one month notice within occurrence of such event.
16. Resolution of dispute / Interpretation:
In case of any dispute arise between the Implementing Agency and KVIC, the same
shall be settled mutually, and if any difference in opinion, the same shall be referred for
arbitration to the Secretary, Ministry of ARI, Govt. of India, whose decision shall be
final and binding on both parties.
[[[[[ [[[
In witness where of the parties to this Agreement have hereunto signed their
respective names and affixed their respective seals the date and the year first here in
above written.

Signed, Sealed and delivered by Signed, Sealed and delivered by
Sri .

For and on behalf of the
1
st
Party, in presence of Witness
1.

2.
Sri

for and on behalf of the
2
nd
Party in the presence of witness
1.

2.
62

Annexure:E
List of Technical Agencies

1) Director General, National Institute for Entrepreneurship & Small Business
Development, A-23, Sector-62, Institutional Area, Phase II, Noida 201 3 01.
(U.P). e-mail:- edniesbud@vsnl.net
2) Director Genearal, National Institute for Micro, Small and Medium Enterprises
(NIMSME), Yousufguda, Hyderabad 500 045, Andhra Pradesh. e-mail:-
csreddy@nisiet.org
3) Director, Indian Institute of Entrepreneurship, Lalmati, Basistha Chariali, 37, N.H.
Bypass, Guwahati. 781 029. Assam, India
4) Director, Entrepreneurship Development Institute of India (EDI), P.O. Bhat, Dist.
Gandhinagar, (Via. Ahmedabad Airport & Indira Bridge), Gujarat, Pin. 382 428. e-
mail:- dines@ediindia.org
5) Chief Executive Officer, National Bank for Agriculture and Rural Development,
NABARD Consultancy Services (NABCON), Plot No. C-24. G Block, 2
nd
Floor,E
Wingt, Bandra- Kurla Complex, P.B.No.8121, Bandra (East), Mumbai 400 051,
Maharashtra. e-mail:- nabnfs@boms.vsnl.net.in / nabcons@vsnl.net
/sree1150@hotmail.com, Ph. 022-26530037 Fax 022-26520199
6) The Director, Xavier Institute of Management, Bhubaneshwar 751 013, Orissa
7) The Director, Indian Institute of Rural Management (IIRM), IIRM Campus, Tagore
Marg, Mansarovar, Jaipur 302 020, Rajasthan. e-mail:- iirm@iirm.ac.in /
info@iirm.ac.in
8) The Director, Indian Institute of Crafts & Design, IICD, Jhalamdungri Industrial
Area, Jhalamdungri, Jaipur, Rajasthan. e-mail:- info@iicd.ac.in
9) The Director, Indian Institute of Forest Management, Post Box No.357, Nehru
Nagar, Bhopal 462 003, M.P. e-mail:- monmohan@iifm.ac.in
10) Chief Executive Officer, North Eastern Industries Consultants Ltd., Rathore Bhawan,
2
nd
Floor, North Gate, Palace Compound, Agartala. 799001
11) The Director, BASIX, Surabhi Arcade, Bank Street, Troop Bazar, Koti, Hyderabad
500 001, A.P. e-mail:- dsattaiah@basixindia.com
12) The Director, Kumarappa National Handmade paper Institute, Khadi & V.I.
Commission, Ramsinghpura Sikar pura Road, Sanganer, Jaipur-303902
13) The Dy. Director, I/c, Central Bee Research & Training Institute, Khadi & V.I.
Commission, 1153, Ganesh kind Road, Pune-411016. 020-25675865/25655351
14) Director, Defense Institute of High Altitude Research (DIHAR), Murtsey, Leh, Ledakh
194101, J&K
15) Managing Director, Small Industries Product Promotion Organization, No 52, T.B
Road, Mahboobpalayam, Maduri-625016, Tamil Nadu. (SIPPO)
16) Director, Mahatma Gandhi Institute for Rural Industrialisation, (MGIRI),
Manganwadi, Wardha

63

Annexure:F
Model of MoU executed between NA and TA
MEMORANDUM OF UNDERSTANDING BETWEEN
KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC), MUMBAI
& TECHNICAL AGENCY

1. Background
1.1. Whereas a Central Sector Scheme titled the Scheme of Fund for Regeneration of
Traditional Industries (SFURTI) has been drawn up and approved by the Union
Ministry of Agro and Rural Industries (ARI) and it has been decided to implement
the said scheme through a well knit system of Nodal Agencies (NA), Implementing
Agencies (IA), Technical Agencies (TA), Cluster Development Agents (CDA) & other
resource providers.
1.2. Whereas the Khadi & Village Industries Commission (KVIC) designated as
Nodal Agency has been entrusted with the responsibility of implementation of the
Central Sector Scheme in so far as it is related to Khadi & Village Industries.
1.3. Whereas the .an organization having requisite expertise in the field
has been offering its expertise services in the area of clusters development and
willing to render its services as the Technical Agency in execution of the present
scheme in the areas assigned to it by the Nodal Agency / Scheme Steering
Committee.
1.4. Whereas, the organizations, viz., KVIC and Technical Agency (..) had
preliminary discussions and mutually agreed to enter into this collaborative work
arrangement for implementation of the scheme as per the terms and conditions laid
down in this understanding.
2. Objectives
2.1. With a view to regenerate, clusters of traditional Khadi & Village industries in
various parts of the country over a period of five years commencing 2005-06.
2.2. To make traditional Khadi & Village industries more competitive with more market-
driven, productive, profitable and sustained employment for traditional Khadi &
Village industry artisans and rural entrepreneurs engaged in promotion of Village
Industries.
2.3. To strengthen the local governance systems of Khadi & Village industry clusters,
with the active participation of the local stakeholders, so that they are enabled to
undertake development initiatives by themselves.
2.4. To upgrade innovative traditional skills, introduce improved technologies, adopt
advanced processes, gather market intelligence and build up new models of public-
private partnerships, so as to gradually replicate similar models of cluster-based
regenerated traditional Khadi & Village industries.
3. Target Sectors and Potential Beneficiaries
The target sectors and potential beneficiaries will include:
3.1. Artisans, workers, machinery makers, raw material providers, entrepreneurs,
Institutions (NGOs), government agencies, semi govt. agencies etc. directly
engaged in promotion of selected clusters of Khadi and village industries,
3.2. Artisan guilds, cooperatives, consortia, networks of enterprises, self-help groups
(SHGs), enterprise associations, etc.
3.3. Implementing agencies, field functionaries of Government institutions/
organisations and policy makers, directly engaged in promotion of traditional Khadi
& Village industries.
4. Intervention/Support Measures
These would consist of the following:
4.1. Replacement of old and or introduction of new spinning and weaving implements.
4.2. Setting up of Common Facility Centres (CFCs).
4.3. Development of new products, new designs for various Khadi and village industry
(VI) products, new/improved packaging, etc.
4.4. Market promotion activities.
64

4.5. Capacity building activities, such as exposure visits to other clusters and
institutions, need-based training, support for establishment of cluster level networks
(industry associations) and other need based support.
4.6. Other activities identified by the Implementing Agency (IA) as necessary for the
development of the cluster as part of the diagnostic study and included in the
Annual Action Plan in respect of the cluster.
5. Nodal Agencies (NAs)
The following agency has been designated as the Nodal Agency for implementation
of the Scheme related to traditional Khadi & Village industries:
5.1. Khadi and Village Industries Commission
Whereas the Nodal Agency (NA) has identified / will identify the Implementing
Agencies (IAs) based on objective criteria approved by the Scheme Steering
Committee (SSC) as constituted by the Ministry of Agro and Rural Industries,
Government of India. The NA shall be responsible for disbursement of funds to the
approved IAs as well as TAs in accordance with the approved budget & action plan
and shall coordinate & monitor the progress through a common forum of the NA,
TA, IA, CDA & other service providers.
These shall be such institutions of repute and track record as have expertise in
cluster development methodology and shall provide technical support to the NAs
and the IAs. The responsibilities of the TAs will, among
others, include assisting the NAs in identification of clusters & CDA, conducting
training of the Cluster Development Agents (CDAs) and other officials of the IAs and
NAs, guiding in diagnostic studies, preparation of action plan, validation of cluster
action plan, supervising execution of
action plan, outsourcing other resource providers, participating in monitoring &
evaluation meetings called by NA for the purposes as specified above, the TA shall
identify, nominate & assign one or more of its experts in respect of each cluster or
group of clusters. The .. shall act as technical Agency under the
above said scheme / identified activities.
7 Implementing Agencies (IAs)
6.1. Implementing Agencies (IAs) would be non-government organisations (NGOs),
institutions of the central and state governments and semi-government institutions
with track record of performance in the field of traditional Khadi & Village industries
in the rural areas. Generally, one IA will be assigned only one cluster in a
geographical compact area (unless it is an agency with state-wide coverage). The
selection of IAs, based on approved criteria, will be done by the NA and approved
by Scheme Steering Committee (SSC).
7.2. Only such implementing agencies (IAs) both for Khadi & Village Industries clusters
will be covered under this M.O.U. as are cleared by the Scheme Steering
Committee.
8. Cluster Development Agent (CDA)
Each IA shall in consultation with the NA, TA or such other person or body as
authorized by SSC identify and appoint a Cluster Development Agent (CDA),
exclusively for each cluster. The CDA shall be located in the
cluster full time and responsible for execution of action plan in accordance with the
terms & conditions. The CDAs will undergo prescribed training in cluster
development methodology to be coordinated by the NA and organized / conducted
by through the T A. The responsibilities of CDA shall inter-alia, include conducting
the diagnostic study, preparation of the action plan, execution of the action plan,
coordination with NA & TA, respond periodically to such management information
system as is prescribed by TA & NA.
Cluster Development Coordination Group (CDCG) will be formed in each cluster with
the objective of involving the cluster level stakeholders in the process of cluster
development and supporting the activities of the CDA. Representatives of the
targeted traditional Khadi & Village industries
65

artisans, enterprises, support service institutions, banks, state government
agencies, panchayati raj institutions, banks, buyers of Khadi & Village industry
products, etc.
10. Responsibility of .. as Technical Agency
10.1 Generally the scope of responsibilities of the Technical Agency (..) shall be
such as are indicated in the Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) & the minutes of the meeting of the Core Group / Scheme
Steering Committee held from time to time.
10.2 Specifically the following tasks will inter-alia, be the sphere of responsibilities of the
TA :
(i). Technical support to Implementing Agencies (IA)
(ii). Imparting training to Cluster Development Agents (CDAs) and officials of IAs
and NAs.
(iii). Support services to the CDAs in conducting diagnostic studies
(iv). Assistance and guidance in preparation of Action Plans
(v). Validation of cluster action plans
(vi). Handholding services to CDAs and I.As of the assigned clusters
(vii). Organising seminars and experience sharing workshops
(viii). Printing of quarterly bulletins bringing out the progress and achievements
(ix). Profiling and deployment of public/private Business Development Services
(BDS) providers
(x). Identification of national/international machinery and other input suppliers
(xi). Preparation and dissemination of commonly applicable strategies & best
practices for implementation of activities relating to marketing, financing,
development of training modules, technology development and branding
(xii). To coordinate on behalf of the NA, the implementation of select common
parts of the scheme by way of provision/ administration of funds as
mandated by the SSC
(xiii). Assistance in building the local governance frame work
(xiv). To develop appropriate templates and tools for participatory Monitoring and
evaluation. Further to use the tools to monitor and evaluate the programme
activities across different KVI clusters.
11. Responsibility of KVIC as Nodal Agency
The following will in general be the responsibilities of Nodal Agency (i.e. KVIC):
11.1 To develop criteria for identification of IA & the cluster under it.

11.2 To compile preliminary data about the IA & the cluster as prescribed by the Ministry
of A&RI.
11.3 Upon approval of the IA by the Scheme Steering Committee, coordinate with TA &
finalize schedule of activities & sub-activities in respect of each cluster.
11.4 To evaluate the diagnostic study & cluster action plan and present the same in its
final shape to the Ministry of A&RI for clearance by Scheme Steering Committee.
11.5 Operationalization of budgetary approvals granted by the Scheme Steering
Committee relating to specific scheme components including payment to the TA, IA,
CDA, etc.
11.6 To coordinate the implementation of such common activities either directly or
through other national/international agencies that support the implementation of
cluster development activities across similar KVI clusters.
11.7 To be overall responsible for the effective and efficient implementation of the
scheme for the achievement of stated scheme objectives.
11.8 Monitoring of the implementation of the scheme and submission of such progress /
performance report to the Ministry of A&RI / SSC as is prescribed by them.
12. Financial and other arrangements
12.1 The quantum or scale of funding for the identified activities / services shall be
appropriately evolved by the NA & TA through mutual consultations with reference
to the guidelines laid down in the Office Memorandum No. G-20014/8/2004-KVI
dated 3
rd
of October 2005 of the Ministry of Agro and Rural Industries, Government
66

of India, New Delhi. Actual payments to the TA for the services rendered by itself or
individuals / organizations outsourced by it in consultation with NA & IA will be
governed by an agreement or such terms & conditions as are prescribed by Scheme
Steering Committee in budget approvals in respect of each IA / cluster/ common
activity.
13. Force majeure
13.1 Neither party shall be held responsible for non-fulfillment of their respective
obligations under this agreement due to the exigency of one or more of the force
majeure events such as but not limited to acts of God, war, floods, earthquakes,
strikes, lockouts, epidemics, riot, civil commotion, etc. provided on the occurrence
and cessation of any such events, the party affected thereby shall give a notice in
writing to the other party within one week of such occurrence or cessation. If the
force majeure condition continues beyond six months, the parties shall then
mutually decide about the future
course of action.
14. Resolution of Dispute
14.1 In the event of any dispute arising out or touching or concerning this MoU, the
same shall be resolved by mutual discussion by Head of both the parties and in case
the dispute is not resolved after mutual discussion, the same shall be referred to
the Secretary, Ministry of SSI&ARI, Govt. of India, whose decision shall be final and
binding on both the parties
Operational dates
(i). This Memorandum of Understanding shall come into effect from the date of its
signing by both the parties and shall continue to be in operation for a period of five
years or till completion of the scheme, whichever is earlier.

Both the parties sign this Memorandum of Understanding on this day of
2006.
Signed for Signed for

TECHNICAL AGENCIES

KHADI & VILLAGE INDUSTRIES
COMMISSION, MUMBAI
***
67

Annexure: G
AGREEMENT BETWEEN CLUSTER DEVELOPMENT EXECUTIVE
AND IMPLEMETATING AGENCY
AGREEMENT made at . this ..
th
day of 200. between the (name
of the I.A), a registered khadi institution / registered NGO body created under an Act of
Parliament, having its Head Office at (Address) hereinafter
referred to as . (Commission) (which expression shall unless repugnant to the
context or meaning thereof be deemed to include its Successors and Assigns) of the FIRST
part and Shri. (CDE) residing at (Address) .. herein after referred to as
Cluster Development Agency/Executive (CDE) . (which expression shall unless
repugnant to the context or meaning thereof be deemed to include its Successors and
Assigns) of the SECOND PART.
WHEREAS the (Commission) is established with the object of generating
employment in rural areas through SFURTI Scheme in the development of khadi and
village industries. For that purpose the (institution) is establishing linkage
with the persons and other agencies engaged in rural development. As a part of its
functions, IA has undertaken /agreed to undertake the programme of Khadi and Village
Industries Commission (KVIC), Govt of India by name Scheme of Fund for regeneration of
Traditional Industries (SFURTI). This being a programme for the establishing and running
of a cluster, requiring technical skill/know how the IA is in need of the assistance of a
Technical Agency(herein after refered to as TA), who can establish linkages between the
IA and various agencies and NGOs implementing Khadi and Village Industries activities in
rural areas and give technical guidance in the method of production and marketing of KVI
products.
WHEREAS the .. (CDE) is a qualified (profession-specialist)
having wide experience in working with various Social Organizations and NGOs functioning
in the rural areas of . (State) and familiar with the establishment and running of
various types of clusters.
AND WHEREAS the . (institution) has decided to engage the
.. (CDE) for the aforesaid purpose and the .. (CDE) has
agreed to render his services as ... (CDE) on the following terms ad conditions:
NOW THIS INDENTURE WITNESSETH AND IT IS AGREED BY AND BETWEEN THE PARTIES
HERETO AS FOLLOWS:
1. The . (institution) appoints Shri. .. (Name) as the (CDE)
on a monthly honorarium of Rs . (Rupees . ) per month
(Consolidated), with yearly increment of Rs . ( ..) only of each completed
year and service and mobility allowances of Rs . ( ..) per month towards
mobile, e-mail, fax, local travel etc with 10% increase for each year, which will be
paid at the last working day of each month.
2. the CDE shall be under the administrative control of the IA and will be entitled to
holidays and leaves as decided by the IA from time to time. As far as cluster
development is concerned, he will act strictly in accordance with the instructions of
Khadi and Village Industries Commission, who shall be the Nodal Agency.
3. The CDE shall render the following services:
a. He should report the cluster development progress to the Nodal agency
(KVIC) from time to time and will be responsible for the development of the
cluster under SFURTI programme. He should follow the other conditions laid
down in the agreement between IA&NA from time to time- for release of
funds to implement various activities under SFURTI. The said agreement
shall form part of these presents.
b. Develop proper linkages and coordination with all concerned agencies for
promotion of KVI programme like Technical Agency and other agencies who
are experts in the promotion of village industries programme, particularly in
the field of tool designing, process development etc.
68

c. Any other assignment given by the Nodal Agency (KVIC) from time to time
for the development of cluster development under SFURTI scheme.
d. His head quarter will be at the cluster itself. He will be provided office by the
institution (IA) with necessary infrastructure.
e. The . (CDE) shall not be allowed to take any other assignment from
any person or agency during the tenure of this agreement.
f. He shall work in close coordination with Technical Agency and IA
4. The CDE shall be paid TA & D.A. for the journeys undertaken by him in connection
with his assignment at the rates prescribed by the IA . Telephone /cell phone
expenses incurred by him for official purpose up to a maximum of Rs . Shall also
be reimbursed.
5. The . (CDE) shall report to the NA and IA and shall furnish monthly report of
the work attended by him, under intimation to IA &TA.
6. The (CDE) shall not be entitled for a regular appointment in the IA
or any other benefits which the regular employee of the IA are entitled to.
7. The appointment of the . (CDE) shall be for a period of (five
year), or till the completion of the project, which may be subsequently extended as
per the need or satisfaction of the IA.
8. The CDE has to execute a bond for a sum of Rs 2.00 lakhs ( Rupees two lakhs only)
in the prescribed format stating that he shall work for a minimum period of three
years.
9. The services of the .. (CDE) shall be terminated at any time by giving
one month notice or one months honorarium in lieu of the notice by the IA, in case
the services of the . (CDE) is found to be unsatisfactory in the interest of
SFURTI.
10. In case the (CDE) desires to terminate this agreement at any time, after
the minimum period stipulated in the bond, he may do so by giving one-month
notice in writing in advance to the IA, followed by refund of expenditure to the
extend of bond.
11. While discharging the obligations, the CDE shall abide by the terms and conditions
specified in the OM issued by the Govt. of India in respect of SFURTI as well as
other conditions stipulated by the NA.
12. The .. State Director, Khadi and VI Commission shall be the sole arbitrator for
resolving any dispute or difference between the parties to this agreement. The
decision of the arbitrator shall be final and binding on the parties and the same shall
not be challenged in any court of law.
IN WITNESS WHEREOF the parties hereto have put their hands on the day and year
hereinabove written.

Signed for and on behalf institution/NGO/Shri. ..

In the presence of :
1. .. 2 ..

Signed by within named (CDE) Shri ..

In the presence of:
1 2 ..

69

Annexure: H
SFURTI M&E Framework
(January 29, 2009)

Foundation for MSME Clusters

1. Introduction
The Monitoring and Evaluation (M&E) tool for the Scheme Steering Committee (SSC) will
be two comprehensive tables (tables 8A and 8B, see below), one each for Khadi and
Village Industry (VI) sector on an all India basis. These two tables will explain the
following:
1. Degree of preparedness of the system implementing SFURTI, i.e. CDE, IA and TA
structures are present and capable of performing the assigned task
2. Activities are being implemented as per plan so that one expects to get desired results
3. SFURTI is effective as reflected in the tables of programme results and programme
benefits
4. Fund sanctioned by the SSC has been utilized

The tables 8A and 8B for SSC will be derived from the following 7 tables:

Table to be
prepared by
Parameter Brief Reason for Inclusion for M&E
CDE IA TA
1 Structures
are in place
For successful implementation of SFURTI,
appropriately trained personnel spending adequate
time and also appropriately remunerated as per
scheme or contract issued to them are essential.
These will ensure that desired working structure is in
place, i.e. effective.
1 5 7
2 Activity
being done
as per plan
This will ensure that all the activities are being
implemented as per plan. Small deviations will give
us lessons. Large deviation or non-performance will
require corrections.
2
3 Review of
Results
Each activity will give results. This table will
summarize the results as they appear in activity
table. Here special emphasis needs to be given on:
1. Infrastructure creation and purchase of machinery
2. Results of activities

3A
3B

4 Review of
Benefits
While activities will give results, these have to
ultimately get translated into benefits for the cluster
stakeholders. This table will summarize all the
benefits, due to the CDP. This will also help in impact
assessment later.
4
5 Financial
Review
This will look into the utilization of financial resources
sanctioned.
6

2. Instructions for Report Submission
70

1. CDE should prepare tables 1, 2, 3A, 3B and 4 and submit by 7
th
day of the end of the
reporting period to IA.
2. IA after ratifying these tables and after taking input of TA should submit these tables
and also tables 5 and 6 to NAFO within another 14 days, i.e. by 21
st
day.
3. TA should submit table 7 to NAFO by 14
th
day.
4. NAFO should submit the set of 7 tables for all clusters to NAHQ within 7 more days, i.e.
by 28
th
day.
5. NAHQ will compute the tables in the excel sheets for Khadi (Sheet named Khadi) and
Village Industry (Sheet named Village Industry). This will automatically generate tables
8A and 8B for SSC. This process to be covered within 14 more days, i.e. by 42
nd
day.
6. The entire event will be completed within 45
th
day. Alternatively if the NAFOs can
update the data at the state level inn the excel sheets through an on-line system, then
the tables 8A and 8B, to be sent to SSC, can be finalized by the 35
th
day.
3. Cover Page for Report Submission for each cluster

Name of Cluster: ___________________________________________________
Zone: ___________________________________________________
Name of CDE: ___________________________________________________
Name of IA: ___________________________________________________
Name of TA: ___________________________________________________
Year and month of Programme Starting: ________________________________
Report for the Period Ending: Quarter _________________ Year _____________

4. Tables to be prepared by CDE, ratified by IA, input to be taken from TA and
submitted to NAFO by IA

Table 1: CDE Structure in Place (Quarter____, Year______)
Sl.
No.
Issues Status Yes/No
1 Did the CDE work for the cluster for at least 90% of
the reporting period (assume 20 workdays per
month)?
Yes/No
2 Is the CDE formally or informally trained in CDP
methodology?
Yes/No
3 Is the CDE receiving her/his salary every month? Yes/No
4 Overall: CDE structure in place Score:
Yes=1/No=0

Comment/Notes if any

Explanatory Notes (Table 1)

1. CDE formally trained in CDP: CDE has been trained by TA or any such KVIC
designated institute
2. CDE informally trained in CDP: On the job training has been provided to CDE
3. CDE working full time means that the CDE is not involved in any other
professional activity apart from CDP
71

4. CDE receiving salary every month means CDE salary is not due for more than the
current month when the quarterly report is being prepared.
5. If answer to any of the issues from serial number 1 to 3 in table 1 is in the
negative, then the CDE structure is not in place and the answer to issue in serial
number 4 in table 1 is in the negative. For an overall answer of yes, the answer to all
the issues 1 to 3 will have to be yes.

Table 2: Activity Review (Quarter _____, Year______)
Activity as per Action Plan
approved by SSC
Time
Plan
(Qtr.)
Activity Completed as
per time plan
(Yes/No)
(Yes=1
/
No=0)
1.
2.
3
..
Total
Percentage of activities done as per time plan A or B or C or D
Score = 0 (if the answer is C or D), Score = 1 (if the answer is A or B)
Note: CDE may like to highlight in a separate sheet the major problems faced during
implementation
6. Time Plan (Qtr.): This is the time plan which has been mentioned in the SSC
approved action plan for each activity. Note Quarter 1 (Q1) = April-June, Quarter 2
(Q2) = July-September, Quarter 3 (Q3) = October-December, Quarter 4 (Q4) =
January-March.
7. Activity as per Action Plan approved by SSC means that action plan which has
been approved by the SSC at the beginning of the year
8. Activity completed as per time plan: An activity is said to have been done as
per time plan if the activity has been completed within the time limit as indicated
against the activity in the action plan approved by SSC. Suppose an activity is slated to
be completed by Q2 and in Q2 review, it is not done. So it gets a status No. Suppose
in Q3 review, it gets done, then it gets a status Yes. The percentage of activities done
will be calculated based on the possible activities that can be completed, by that
quarter, as per Approved Action Plan.
9. Percentage of
activities
10. done as per time
plan

11. Grading of Activities: If percentage of activities done as per time plan is between
0-25%= Grade D, 26-50%= Grade C, 51-75%= Grade B and 76-100%= Grade A.
12. Score: If grade is A or B, give score 0 and if grade is C or D, give score 1.
Table 3A: Review of CFC and Machinery (Quarter _____, Year______)
Usage of Machinery Yes/No
Has machinery been identified? Yes/No
Has machinery supplier been identified? Yes/No
Has contribution of stakeholders (if any) received? Yes/No
Has order been placed and machinery delivered? Yes/No
Are the beneficiaries using the machinery? Yes/No
Overall Status: New machinery in use Score:
Yes=1/No=0
Yes/No
Total number of activities completed
= Total number of activities that could have been
completed as per time plan at the conclusion of
the relevant quarter
72

Establishment of CFC
Has the CFC been identified? Yes/No
Has project report been prepared? Yes/No
Has machinery, land and building for CFC been
identified?
Yes/No
Has bank loan (if any) cleared? Yes/No
Has contribution of stakeholders received? Yes/No
Has order for machinery placed and machinery delivered? Yes/No
Is the CFC working? Yes/No
Overall Status: New CFC in use Score:
Yes=1/No=0

Explanatory Notes (Table 3A)

13. Beneficiary using the machinery means that outputs have started from the
machinery
14. Project report means the document required for disbursing project fund
15. CFC working means stakeholders have started making usage of CFC
16. Overall status for usage of machinery: This table will show step-by-step
improvement and areas for correction for putting the desired machinery in use.
However, if answer to any of the issues is in the negative, then the machinery is not in
use and ineffective as of now and the overall status will be No, with score 0. If
answer to all issues are Yes, then overall status will be Yes and score will be 1.
17. Overall status for usage of CFC: This table will show step-by-step improvement
and areas for correction for establishing the CFC. However, if answer to any of the
issues is in the negative, then the CFC is not established and ineffective as of now and
the overall status will be No, with score 0. If answer to all issues are Yes, then
overall status will be Yes and score will be 1.

Table 3B: Review of Results (Quarter _____, Year______)
Activities (for this quarter only) No. of
families
benefited
Of which
SC/ST families
Market promotion
Exposure visit
Training
Networks created
Technology developed/promoted
BDS/BDS providers introduced
Health/literacy/insurance/pension intervention
Any other (please mention here)
Total families benefited only in the quarter
Total cumulative families benefited for all quarters

Explanatory Notes (Table 3B)

18. Beneficiary: These are direct beneficiaries, benefitted by participating in an event
that was conducted by the CDP. It may well be the case that some of the entries
(except for the last two rows) are not relevant for a cluster.
19. Number of families benefited: In each activity, the participants belong to
different families. When one person gets benefitted, one family will be considered as
benefitted. If more than one person participates from one family in same or different
families, then they will be considered as one family only. For being counted, at least
one member of a family must participate in an event.
73

20. Market promotion: Includes activities which can (directly) or does actually
increases sell, e.g. like organising fairs, exhibitions, linkage with big buyers, exports,
opening of showroom, new selling technique, advertisement, creation of new design,
etc.
21. Exposure visit/Workshop/Seminar: Includes visit for learning, participating in a
workshop or seminar
22. Training: Any formal capacity building exercise in the form of an event.
23. Networks created: Creation of SGH, NGO, company of few non-related families or
even joint companies (e.g. producers companies)
24. Technology developed/promoted: New technology developed or developed
technology started being used
25. BDS/BDS providers introduced: Service provider providing strategic services
have been introduced or new services have been introduced in the cluster
26. Health/literacy/insurance/pension related intervention: Any formal event or
action that promotes these issues
27. Any other: Event not mentioned here can be included in this row.
28. Total number of families benefitted: No family should be counted more than
once while filling the columns of this row. For example, if a family is covered both in
training and market promotion, then count that family only once for the row total
number of families benefitted. The same is true for SC/ST families. Hence the CDE has
to keep full record of which family benefitted from which activity.
29. Total cumulative families benefitted for all quarters: No family should be
counted more than once while filling the columns of this row. For example, if a family is
already counted in any event in any previous quarter, then count that family only once
for the row total cumulative families benefitted for all quarters. The same is true for
SC/ST families. Hence the CDE has to keep full record of which family benefitted from
which activity.
Table 4: Review of Benefit Generated (Quarter _____, Year______)
Attributes (Outcome increase
due to CDP for this quarter
only)
Activity
Numbers which
led to the same
Amounts/
Number where
applicable
No of
Families
benefited
Of which
SC/ST
Turnover (Rupees Lakh) AB
Savings (Rupees Lakh)
New Employment Created (No.)
Average wage increase (Rupees)
Average increase in number of
days of work (for existing
employment only)

Loan disbursed (Rupees Lakh)
Total number of families
benefited
NA
Cumulative families benefited
for all quarters
NA

Note on Linkages


30. Capture here only those benefits which are due to the CDP. Such benefits must
accrue due to (a) an approved activity of the formal action plan and/or (b) informal
linkages provided by CDE or TA or BDS providers engaged by the IA can also lead to
74

such activity. Do not capture (a) contribution of routine and on-going activities,
i.e. activities which were already taking place before CDP and (b) contribution of
activities which cannot be linked to CDP activity.
31. AB: Mention the name of the serial of the activity number with the year in
parentheses. For example, say due to a fair organized in the first year of CDP say
2007-08 (as per activity number 2.3 of the action plan), turnover gets increased by Rs
2 lakh in 2007-08. Turnover also gets increased due to an informal linkage provided by
the TA in 2007-08. Then for the cell AB write as follows: 2.3 (07/08) and TA. Also
explain the TA linkage in the Notes on Linkages at the space provided at the end of
the table
32. Turnover: Increase in annual business value in rupees lakh. Increase in turnover
can take place, among others, due to participation in fairs, new market linkage created,
new capacity created (say buying of machinery), creation of new enterprise, order
received from existing buyers due to new designs created, improved health condition,
improved ergonomics, etc.
33. Savings: Increase in annual savings in rupees lakh can occur due to joint purchase
of raw material, creation of CFC, new technique adopted, learning through
training/exposure provided
34. New employment: Created due to CDP(include full time and part time
employment) can occur due to installation/up-gradation of machinery, CFC, increase in
turnover and the reasons thereof, etc.
35. Average daily wage increase: This is applicable for families already in
employment. Suppose two persons in a family are in job. Due to the CDP, the monthly
income for one increase by 210 Rs and that for another it increases by 90 Rs. Then the
average daily wage increase will be = (Rs 210 + Rs 90)/30 = Rs 10. Since most of the
wage earners are casual wage earners, we take the number of days as 30.
36. Beneficiary: These are direct beneficiaries, benefitted by participating in an event
that was conducted by the CDP. It may well be the case that some of the entries
(except for the last two rows) are not relevant for a cluster. These beneficiaries will be
from the families who got benefitted through output realization in table 3A. Since all
the beneficiaries who got benefit of output (e.g. say through training) need not
necessarily get benefitted through outcome (e.g. say increase in turnover), the total
number of beneficiary here will be less than equal to the number of beneficiary as in
table 3B
37. Total number of families benefitted: No such family should be counted twice.
For example, if a family is covered both in turnover and savings, then count that family
only once for the row total number of families benefitted. The same is true for SC/ST
families. Hence the CDE has to keep full record of which family benefitted how.
38. Total cumulative families benefitted for all quarters: No family should be
counted twice. For example, if a family is already counted in any criterion in any
previous quarter, then count that family only once for the row total cumulative families
benefitted for all quarters. The same is true for SC/ST families. Hence the CDE has to
keep full record of which family benefitted from which activity.

5. Tables to be prepared by IA

Table 5: IA Structure is in Place (Quarter _____, Year______)
Sl. No. Issue Yes/No
1 Has CDCG meeting been organized by IA for this quarter
and Report available (unless postponed by any special
request)
Yes/No
2 Follow-up of CDCG meeting done by IA for previous
quarters and report submitted at CDCG meeting this
quarter
Yes/No
3 Has IA organized at least one joint meeting of CDE, IA, TA
in this quarter
Yes/No
4 IA structure in place Yes=1,
75

No=0



negative, then the IA structure is not in place and the answer to issue in serial number
6 in table 5 is in the negative. For an overall answer of yes, the answer to all the
issues 1 to 5 will have to be yes.

Table 6A: Fund Usage (Quarter _____, Year______)
S.No Fund Usage of NA Value in Rupees Lakh
1 Fund sanctioned during the financial year
2 Fund disbursement during the financial year
3 Cumulative fund utilized for the year as on the
end of the current quarter

Table 6B: Fund Usage (by IA)
Quarter _____, Year______
Expenditure in Activities (Rupees) S.No Activity
KVIC Other SI
(Estimated
)
Cluster
(Estimated
)
Total
1 CFC
2 Design & product development
3 Market promotion assistance
4.1 Exposure visits
4.2 Need based trainings
4.3 Support for networks
4.4 Others (Health, literacy camps,
insurance schemes etc)

Total

6. Table to be prepared by TA
Tables 7: TA Structure is in Place (Quarter _____, Year______)
Issues (Yes/No)
1 Trained CDE, IA and designated NAFO official in CDP Yes/ No
2 Validated the diagnostic study and action plan Yes/ No
3 Provided linkage for market, design, product development,
CFC, credit. etc.
Yes/ No
4 Supported CDE and IA in filling up of M&E tables Yes/ No
5 Participated in CDCG meeting for this quarter (if organized) Yes/ No
6 TA payments not pending as per contract Yes/ No
7 TA Structure in place Yes = 1, No
=0

76


40. TA Trained CDE, IA and designated NAFO official in CDP: TA organized formal
programmes to train.
41. Validated the diagnostic study (only for first quarter for year 1 or as soon as it is
done) and action plan: Was present during the validation exercise and provided
inputs for the same. Also provided inputs for the action plan.
42. Provided linkage for market, design, product development, CFC, credit.
etc.: Organized linkage with appropriate service provider, provided inputs for
participation, created linkages with buyers, etc.
43. Support CDE and IA in filling up of M&E tables: Gave inputs for tables 2, 3, 3A
and 4
44. TA payments not pending as per contract: All dues clear as on end of month
preceding the last month of the quarter as per TA contract
negative, then the TA structure is not in place and the answer to issue in serial number
7 in table 5 is in the negative. For an overall answer of yes, the answer to all the
issues 1 to 6 will have to be yes.

7. Glossary

46. CDE- Cluster Development Agent
47. CDP- Cluster Development Program
48. CDCG- Cluster Development Coordination Group
49. CFC- Common Facility Centre
50. M&E- Monitoring and Evaluation
51. NAHQ- Nodal Agency Head Quarters (KVIC office of CEO)
52. NAFO- Nodal Agency Field Office
53. IA- Implementing Agency
54. SI- Support Institution
55. SSC- Scheme Steering Committee
56. TA- Technical Agency
77

Table 8A: Village Industry (VI) - All India (to be prepared by NAHQ for SSC)

North Zone Central Zone West Zone South Zone East Zone North East Zone All India
Total % of
approved
Total % of
approved
Total % of
approved
Total % of
approved
Total % of
approved
Total % of
approved
Total % of
approved
Clusters approved 9 9 4 10 7 11 50
Clusters functional 4 44 3 33 4 100 8 80 4 57 10 91 33 66
Total % of
functional
Total % of
functional
Total % of
functional
Total % of
functional
Total % of
functional
Total % of
functional
Total % of
functional
Clusters reported
Total % of
reported
Total % of reported Total % of reported Total % of reported Total % of reported Total % of
reported
Total % of
reported
CDE Structure in place
IA Structure in place
TA Structure in place
Status of activities done as per
time plan

New machinery in use
New CFC in use
Number of Families Benefitted
- Output
Total SC/
ST
Total SC/ST Total SC/ST Total SC/ST Total SC/ST Total SC/
ST
Total SC
/ST
Market promotion
Exposure visits
Trainings
Network creation
Technology developed
Health/literacy/insurance/pension
intervention

Total families benefited only in
the quarter

Total cumulative families
benefited for all quarters

78

Table 8A (Contd.): Village Industry (VI) - All India (to be prepared by NAHQ for SSC)

Number of
Families
Benefitted -
Outcome
Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST
Turnover (Rupees
Lakh)

Savings (Rupees
Lakh)

New Employment
Created (No.)

Wage increase

Loan disbursed (Rs
lakh)

Total families
benefited

Total cumulative
families benefited
for all quarters

Fund Utilization Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Fund Sanctioned
Fund Disbursed
Fund Utilized

79

Table 8B: Khadi - All India (to be prepared by NAHQ for SSC)

Tota
l
% of
approved
Tota
l
% of
approved
Tota
l
% of
approved
Tota
l
% of
approved
Tota
l
% of
approved
Tota
l
% of
approved
Tot
al
% of
approved
Clusters approved 6 6 2 9 4 2 29
Clusters functional 6 100 6 100 2 100 9 100 4 100 2 100 29 100
Tota
l
% of
functional
Tota
l
% of
functional
Tota
l
% of
functional
Tota
l
% of
functional
Tota
l
% of
functional
Tota
l
% of
functional
Tot
al
% of
functional
Clusters reported
Tota
l
% of
reported
Tota
l
% of reported Tota
l
% of reported Tota
l
% of reported Tota
l
% of reported Tota
l
% of
reported
Tot
al
% of reported
CDE Structure in place
IA Structure in place
TA Structure in place
Status of activities done as per
time plan

New machinery in use
New CFC in use
Number of Families Benefitted
- Output
Tota
l
SC
/
ST
Tota
l
SC/S
T
Tota
l
SC/S
T
Tota
l
SC/S
T
Tota
l
SC/S
T
Tota
l
SC/
ST
Tota
l
SC/S
T
Market promotion
Exposure visits
Trainings
Network creation
Technology developed
Health/literacy/insurance/pensio
n intervention

Total families benefited only in
the quarter

Total cumulative families
benefited for all quarters

80

Table 8B: Khadi - All India (to be prepared by NAHQ for SSC)

Number of
Families
Benefitted -
Outcome
Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST Value Total SC/ST
Turnover (Rupees
Lakh)

Savings (Rupees
Lakh)

New Employment
Created (No.)

New Employment
Created (No.)

Wage increase

Loan disbursed (Rs
lakh)

Total families
benefited

Total cumulative
families benefited
for all quarters

Fund Utilization Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Total % of
sanctioned
Fund Sanctioned
Fund Disbursed
Fund Utilized

81

PART - III
OFFICE MEMORANDUM,
OFFICE ORDERS
& CIRCULARS

82

Annexure: I

GOVERNMENT OF INDIA
MINISTRY OF AGRO RURAL INDUSTRIES
UDYOG BHAWAN, NEW DELHI 110001
Date:16
th
January 2006

OFFICE MEMORANDUM

Subject: OM No G-20014/8/2004/KVI dated 3
rd
October 2005
regarding Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) and conducting of the first meeting of the
Scheme Steering Committee (SSC) held on 24
th
November 2005
under the chairmanship of Secretary (SSI&ARI) Request for
proposal for development of Khadi & Village Industry and Coir
Industry clusters.

The KVIC and Coir Board are the designated nodal agencies (NAs)
for the implementation of SFURTI and are required to send proposals to
the Ministry for consideration by the SSC for development of khadi,
village industry clusters in line with the broad criteria laid down in the
scheme guidelines in the above referred O M dated 3
rd
October 2005
and those decided in the first meeting of SSC held on 24
th
November
2005. The NAS are also required to consult the State Governments
before sending their proposals.

2. In this regard, the format for sending proposals for selection of
clusters under the Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) is enclosed.

3. It is accordingly requested to forward proposals for development
clusters under SFURTI after consulting the State Governments for
consideration of the SSC in the enclosed format positively by 24
th

January 2006.

Sd.
Ashuthosh Mishra
Director
Tel: 23062745
The Chief Executive Officer
KVIC, Gramodaya
3 Irla Road, Vile Parle(W)
Mumbai.

83

DIRECTORATE OF SFURTI Annexure: J
KHADI AND VILLAGE INDUSTRIES COMMISSION
3, Irla Road, Vile Parle (West), Mumbai 400 056.
Ph./Fax: 022-26713696 E-Mail: sfurti@kvic.gov.in
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.
***
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.
5. 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
84

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 specific request 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.

7. 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.
8. 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.

85

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.
9. 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.
i. 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.
ii. 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.
iii. 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
holders etc. associated with the cluster.
iv. 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. Looking into 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:
a. All Implementing Agencies
b. All Technical Agencies
c. All Cluster Development Executives
d. All State Office / Divisional Office Directors
e. All Zonal Dy. CEOs
f. All Industry / Programme Director. Central Office, Mumbai
g. Directorate of Publicity for printing in "Jagruti"
Copy for information to:
1. All Members of KVIC
2. Financial Advisor
3. Secretary to Chairperson
86

MONITORING FORMAT-I
SCHEME OF FUND FOR REGENERATION OF TRADITIONAL INDUSTRIES (SFURTI)

MONTHLY PROGRESS REPORT KHADI/ VILLAGE INDUSTRIES CLUSTER : PART A

Type of the Cluster:
Name of the Cluster:
Name of the Implementing Agency:
Name of Technical agency:
Month & Year:
I. Details of Activities Carried out during the month:

Sources of
Funds (Rs. 000)
S.
No
Details of the activity
(Name, Date, Organized by
etc.)

* Nature
of
Activity

Target
Group
(1) Objectives
(2) Deliverables
(Indicate 1 & 2
Separately)
Partners/
Collaborators

SFURTI IA
Cluste
r
Actors
Other
sources

(A) Action Plan
Activities:

(B) Other Activities

II. Tangible Results:

III. Intangible Results:
IV. Challenges faced:
*(CA Capacity Building, PD - Product Development & Design Interventions, MP - Market Promotion, CFC Common Facility
Centre, Misc Miscellaneous)
87


MONTHLY PROGRESS REPORT : PART B

Name & Place Month & Year:
Of the Cluster:
DETAILS OF FUNDS UTILIZATION (Rs. Lacs)

Funds utilized
during the Month
Cumulative funds utilization
during the year
Sr.
No
Activity
Funds
Sanctioned by
Nodal Agency
SFU
RTI
IA Cluster
Actors
Other
Sources
SFU
RTI
IA Cluster
Actors
Other
Sources
1.
Capacity Building
(CB)

2.
Product Development &
Design Interventions (PD)

3.
Market Promotion (MP)

4.
Common Facility Centre
(CFC)

5.
Miscellaneous (Misc)

6.
CDE cost including mobility
expenses

Total

88

MONTHLY PROGRESS REPORT : PART C

(A) Coverage of artisans
SC ST Minority Other Total
(Women & Men)
Women inclusive of
SC/ST/Minority & others

(B) Any other activities performed for benefit of artisans other than the annual action plan
1
2
(C) Visits Technical Adviser: ---- Nos
State Director: --- Nos.

(C) Actual benefit to the artisans in the income level and other benefit
1
2
(D) Any other Observations/Remarks
1
2
Signatures:

CDE

Implementing
Agency Nodal Officer Technical Adviser State Director

89

FORMAT II

ZONAL LEVEL MONTHLY PROGRESS REPORT OF SFURTI

NAME OF THE ZONE:

A. Status
No. of clusters
approved
Clusters operationalised
No. of clusters Progress
Name of the
State
Khadi V.I.
Khadi V.I. Total Physical
achievem
ent
Financial
achievem
ent
Actual
benefits
to the
artisans
Remarks

B. No. of clusters visited during the month and their observation:-

Dy. Chief Executive Officer, (.Zone)
90

Quarterly Monitoring Format - III

CDE Reporting :
To be submitted by CDE
To be submitted to IA
Copy to NAFO I.A.
Frequency of preparation Quarterly
Submission Deadline 7 days from end of the
reporting period
Additional Attachments Nil

Table 1: CDE Structure in Place; to be filled by CDE, Quarterly
CDE working in the cluster since (month and year)

Is the CDE formally trained in CDP methodology

Yes/No
Is the CDE working full time for the cluster? Yes/No
If no, list job responsibilities (other than SFURTI CDE
work)

CDEs TA& DA pending for how many months?
CDEs salary pending for how many months?
Number of work days spent in the cluster
Number of work days spent outside the cluster for
cluster related activities

Table 2: CDE Structure is Working/Responsive; to be filled by CDE, Quarterly
Stakeholder confidence on CDE 1 2 3 4 5
Entrepreneurs suggest CDE activities
Entrepreneurs invite CDE to their group meetings
CDE welcomed to firms without prior appointment
Local institutions invite CDE for their MSE related
functions

Institutions seek help of CDE in mobilizing firms

CDEs ability to document
CDEs ability to make presentations

Score: 1 = No, 2 = Sometimes, 3 = To a great extent, 4 = Mostly, 5=Always
91

Table 3: Activity Review; to be filled by CDE, monthly
S.
No
Activity as per Action
Plan approved by SSC
Time
(Qtr.)
Outcome and actual
No. of Direct
Beneficiary
Problems faced
1.
2

S.No Unplanned Activity Time
(Qtr.)
Actual No. of Direct
Beneficiary
Problems faced
1
2

Note- No more than 30% of the activities should be un-planned. Hence 70%
or more will be planned activities. Here there are 15 planned (approved) and
4 activities which are un-planned

Table 4: Output Review; to be filled by CDE, quarterly

Inputs provided Response
1. Purchase of Machinery
Machinery identified Yes/ No
Supplier identified Yes/ No
Contribution of Stakeholders received Yes/ No
Order placed and delivered Yes/ No
In use Yes/ No
2. Establishment of CFC Yes/ No
CFC identified Yes/ No
Land and building identified Yes/ No
Bank loan (if any) cleared Yes/ No
92

CFC Working Yes/ No
3. Design and product development support provided Yes/ No
4. Market promotion assistance provided Yes/ No
5. Exposure visits to other clusters & institutions undertaken Yes/ No
6. Need based trainings provided Yes/ No
7. Support for cluster level networks Yes/ No
8. New BDS/BDS providers introduced Yes/ No
9. Capability enhancing measures like health/literacy camps,
insurance/pension schemes etc undertaken
Yes/ No
10. Total families benefited in the quarter (without overlap for
the quarter)
NA
11. Total cumulative families benefited (without overlap for the
intervention period)
NA
Any other remarks

Table 5: Outcome Review- to be filled by CDE, quarterly
Attributes (Outcome increase due to CDP) Amounts/
Number
where
applicable
Production (Rs lakh)
Salesa (Rs lakh)
Earnings (Rs. Lakh)
Average wage increase (Rs.)
Average increase in number of days of work (for existing
employment only)

CFC created/revived
Network created/revived
Loan disbursed (Rs lakh)
Improved Working conditions NA
Reduced Migration NA
Total families benefited in the quarter (without overlap for the
quarter)
NA
Cumulative families benefited (without overlap for the
intervention period)
NA

Date:
Signature
Name of CDE
Name of Cluster
93

Quarterly Monitoring Format - IV
IA Reporting :
To be submitted by IA
To be submitted to NAFO (State Office /
Divisional Office, KVIC)
Copy and feedback on tables 1,2,3,4,5 from TA
reporting period
Additional attachment tables Table nos. 1,2,3,4,5

Table 6: IA Structure is in Place and Working; to be filled by IA, quarterly
Name, cell number, e-mail, highest qualification,
years of experience in CDP

Is the IA Representative formally trained in CDP? Yes/ No
CDCG meeting conducted for the quarter and Report
available
Yes/ No
Follow-up of CDCG meeting done Yes/ No
Support CDE in Annual Plan preparation Yes/ No
Support CDE in creation of Consortium Yes/ No
Support CDE in organizing contribution of
stakeholders for purchase of machinery and creation
of CFC.
Yes/ No
Support CDE in implementation of CDP Yes/ No
Organise joint meeting of CDE, IA, TA once every
quarter for review and filling of M&E format
Yes/ No
Support CDE in conducting diagnostic studies, once
during project period
Yes/ No
Total number of days spent
Any other remarks

Table 7A: Fund Usage; to be filled by IA, quarterly
S.No Fund Usage of NA Rs lakh
1 Fund sanctioned during the financial year
2 Fund disbursement during the financial year
3 Expenditure during the financial year
4 Expenditure during the current quarter

94

Table 7B: Fund Usage; to be filled by IA, quarterly
Expenditure in Activities (Rupees)

S.No Activity
NA Other SI
(Estimated)
Cluster
(Estimate
d)
Total
1 CFC
2 Design & product
development support

3 Market promotion
assistance

4.1 Exposure visits
4.2 Need based trainings
4.3 Support for cluster level
networks

4.4 Others (e.g. capability
enhancing measures
undertaken (Health,
literacy camps, insurance
schemes etc)

Total

Date :
Signature
Name
Designation
(Prersident/Secretary) I.A.

95

Quarterly Monitoring Format - V
TA Reporting :

To be submitted by TA
To be submitted to NAHQ Dy.CEO
Copy to NAFO [(I) Zonal SO/DO (II) Director
SFURTI]
Additional Attachment Nil
Submission Deadline 7 days from end of the reporting period

Tables 8: TA Structure is in Place and Working; to be filled by TA, Quarterly
Name of the TA representative, formally trained in CDP?
Work days (full) spent in the cluster
Work days (full) spent outside the cluster for cluster related work
Inputs
i &ii. Training of current CDE, IA representative, designated NAFO
official in CDP
Yes/ No
iii. Support towards conducting diagnostic studies Yes/ No
iv. Action plan preparation for the current year Yes/ No
v. Action plan validation for the current year Yes/ No
vi. Guidance to enhance effectiveness in the areas of market
linkage, design and product development, identification of CFC
opportunity, credit capability
Yes/ No
vii. Training to CDE &IA on issues of implementation in the cluster
with inputs from NAFO for the quarter
Yes/ No
viii. Support CDE and IA in filling up of M&E tables Yes/ No
ix. Identification/Linkage with BDS provider(s) Formation of CDCG Yes/ No
x. Strengthening of cluster related association, society, network
and IA. Participated in the CDCG Meeting
Yes/ No
xi. Participation in CDCG meeting Yes/ No
Total number of days spent
Any other remarks

Date : Signature
Name
Technical Agency
96

Quarterly Monitoring Format - VI

NAFO (SO/DO) Reporting :

To be submitted by NAFO
To be submitted to Zonal Dy.CEO
Copy to NAHQ (Director SFURTI)
Additional attachments Nil
Submission Deadline 15 days from end of the reporting period

Table 9: Overall Structure is in place and working; to be filled by NAFO,
Quarterly for each cluster
(To be derived from Tables 1, 2, 6, and 8)

Serial
No.
Name of the Cluster- (Separate sheets for Khadi/
Village and Coir Clusters)
Response Gross
Answer
1 Full time CDE is in place and formally trained in CDP Yes/No
2 CDE remains in the cluster for around 15 days in one
person-month (of 22 working days)
Yes/No
3 CDE Salary and Allowances not pending for more than
current month
Yes/No

Yes/No
4 IA is formally trained and is in regular touch with CDE,
NAFO and TA
Yes/No Yes/No
5 TA is trained in CDP methodology Yes/No
6 TA visits cluster at least once in 2 months for 2-3 days
each and participates in quarterly evaluation meetings
and CDCG meeting
Yes/No

Yes/No
7 TA provides guidance to enhance effectiveness in the
areas of machinery purchase, establishment of CFC,
design and product development, market promotion,
exposure visits, BDS linkages, capability enhancing
measures.
Yes/No Yes/ No
8 CDCG is constituted with all cluster stakeholder groups
and meets regularly (at least quarterly) and minutes of
the same available
Yes/No Yes/No
NAFO has designated one person from the office as
Nodal Officer for overseeing cluster development and
the person is formally trained and participates in CDCG
Meeting
Yes/No Yes/No
Note- Gross answer is yes for each level if all sub-responses are yeas and If
Gross Answer is yes for all, Overall Structure is in Place.
Table 10: Overall Structure is in place and working separately for khadi and
village industries clusters by KVIC NAFO and that for coir clusters by Coir
Board NAFO (for the state as a whole, quarterly)

97

Levels Number of Clusters Of which Clusters in the North East
CDE system working
IA system working
TA system working
CDCG system working
NAFO system working
Table 11: Output Review separately for khadi and village industries clusters
by KVIC NAFO and that for coir clusters by Coir Board NAFO
(for the state as a whole, quarterly) (To be derived from Table 3)
Inputs provided Response No. of
families
benefited
Of which
SC/ST
families
Supplier identified Yes/ No
In use Yes/ No
2. Establishment of CFC Yes/ No
CFC identified Yes/ No
Land and building identified Yes/ No
Bank loan (if any) cleared Yes/ No
CFC is working Yes/ No
3. Design and product development support
provided
Yes/ No
4. Market promotion assistance provided Yes/ No
5. Exposure visits to other clusters & institutions
undertaken
Yes/ No
6. Need based trainings provided Yes/ No
7. Support for cluster level networks Yes/ No
8. New BDS/BDS providers introduced Yes/ No
9. Capability enhancing measures like
health/literacy camps, insurance/pension
schemes etc undertaken
Yes/ No
10. Total families benefited in the quarter
(without overlap for the quarter)
NA
11. Total cumulative families benefited (without
overlap for the intervention period)
NA

98

Table 12: Outcome Review separately for khadi and village industries
clusters by KVIC NAFO and that for coir clusters by Coir Board NAFO
(for the state as a whole, quarterly)
(To be derived from Table 5)

Attributes (Outcome increase due to
CDP)
Amounts/
Number
where
applicable
No of
Families
benefitted
Of which
SC/ST
Production (Rs lakh)
Sales (Rs lakh)
Earnings (Rs. Lakh.)
Range of average wage increase (Rs.)
Range of increase in number of days of
work (for existing employment only)

CFC created/revived
Improved Working conditions (no. of
clusters)

Reduced Migration (no. of clusters)
Total families benefited in the quarter
NA
Cumulative families benefited (without
NA
Table 13: Fund Leverage separately for khadi and village industries clusters
by KVIC NAFO and that for coir clusters by Coir Board
(for the state as a whole, quarterly) (To be derived from Table 7B)

S.No Amount Spent (Rs Lakhs)
Nodal Agency Cluster
Stakeholders
Support
Institutions
Total
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Total
(for the year)

99

Table 14: Financial Usage separately for khadi and village industries clusters
by KVIC NAFO and that for coir clusters by Coir Board
(for the state as a whole, quarterly)
Activities Sanctioned
Amount
(Rs Lakh)
Disbursed
Amount
(Rs Lakh)
Utilization
amount (Rs
Lakh)
CFC
Design & product development
support

Market promotion assistance
Exposure visits
Need based trainings
Support for cluster level
networks

Others (e.g. capability
enhancing measures
undertaken (Health, literacy
camps, insurance schemes etc)

Total

Date :
Signature & Name
State/Divisional Director

100

Quarterly Format - VII

Zonal Office

To be submitted by Dy.CEO of Concern Zone
To be submitted to Chief Executive Officer
Copy to Director (SFURTI)
Additional attachments Nil
reporting period

Tables 15: Collation of Systemic Review separately for khadi and village
industries clusters by KVIC Zone and
that for KVI Cluster by Zonal Office quarterly
Levels Number of Clusters
CDE system working
IA system working
TA system working
CDCG system working
(SODO) NAFO system working

Table 16: Output Review Khadi and village industries clusters by KVIC ZO
for the concerned State Zonal Office as a whole, quarterly)

Inputs provided No. of clusters
Machinery identified
Supplier identified
Contribution of Stakeholders received
Order placed and delivered
In use
2. Establishment of CFC
CFC identified
Land and building identified
Machinery identified
101

Bank loan (if any) cleared
Contribution of Stakeholders received
Order placed and delivered
CFC working
3. Design and product development support
provided

4. Market promotion assistance provided
5. Exposure visits to other clusters & institutions
undertaken

6. Need based trainings provided
7. Support for cluster level networks
8. New BDS/BDS providers introduced
9. Capability enhancing measures like
health/literacy camps, insurance/pension
schemes etc undertaken

10. Total families benefited in the quarter
NA
11. Cumulative families benefited (without
NA

Table 17: Outcome Review Khadi and Village Industries clusters by KVIC ZO
for the concern State ZO as a whole, quarterly)

Attributes
(Outcome increase due to CDP)
Amounts/ Number
where applicable
Turnover (Rs lakh)
Savings (Rs lakh)
Employment (No.)
Range of average wage increase (Rs.)
Range of increase in number of days of work (for
existing employment only)

CFC created/revived
Improved Working conditions (no. of clusters)
Reduced Migration (no. of clusters)
Total families benefited in the quarter (without
overlap for the quarter)
NA
Cumulative families benefited (without overlap
for the intervention period)
NA
102

Table 18: Fund Leverage Khadi and village industries clusters by KVIC ZO for
the concern State ZO as a whole, quarterly)

S.No Amount Spent (Rs Lakhs)
Nodal Agency Cluster
Stakeholders
Support
Institutions
Total
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Total
(for the year)

Table 19: Financial Usage - Khadi and village industries clusters by KVIC ZO
for the concerned State as a whole, quarterly)
(Rs lakh)

Activities Budget
Sanctioned
Fund
Disbursed
Fund Utilized
CFC
Design & product development
support

Market promotion assistance
Exposure visits
Need based trainings
Support for cluster level networks
Others (e.g. capability enhancing
measures undertaken (Health, literacy
camps, insurance schemes etc)

Total

Date :

Signature
Name
Dy.Chief Executive Officer(Zone)
103

Annexure: K
3 ,

IRLA ROAD, VILE PARLE(W) MUMBAI-56

No. Adm-II/Committees/2/06-07/(220) Date: 14-11-2006

CIRCULAR

A Committee consisting of the following members has been
constituted for selection of Cluster Development Agents (CDA)/
Executives for programme in all the six zones.

1. Zonal Dy CEO : Chairman
2. Two representatives of Implementing Agencies : Members
3. A renowned Psychologist from the Zone (Psychologist of the
Western zone to be nominated from Tata Institute of Social
Sciences (TISS), Mumbai. : Member.
4. Representative of the Zonal Technical Agency : Member.
5. state Director of Zonal head quarters : Member/
Convener

The above Committee will examine the applications, conduct
interview and other related work for the purpose of selection of CDA.
The above committee will complete the above assignment on or before
10-12-2006.
This is issued with the approval of the Chairperson.

Sd/-
Director (Administration)
To,
1. Jt Chief Executive Officer, KVIC, Mumbai
2. Chief Vigilance Officer, KVIC, Mumbai
3. All Dy. CEOs, KVIC, Mumbai
4. Dy CEO(NEZ), KVIC, Guwahati
6.
7. All Industries/Programme Directors
8. All State/Divisional Offices
9. Director, Hindi Cell to issue Hindi translation of the circular
10.Director Publicity for publishing the same in ensuing issue of Jagriti.
11. CEO Cell.

104

Annexure: L
3 ,


No. SFURTI/VI/DL/1055 /2006-07 Date: 14-03-2007

CIRCULAR

Commission in its meeting held on 27-12-2006, it has decided the
NGOs whose proposals are approved for V I Clusters under SFURTI
programme. The following agencies are eligible for implementation of
the programme.
1. KVIC directly aided and KVIB directly aided
institutions/cooperative societies.
2. State Govt/ State Govt undertaking institutions
3. NGOs/Cooperative Societies /Institutions /charitable trust
after enlistment with KVIC.
The above circular is for immediate compliance of all concerns for
the speedy implementation of SFURTI programme.

Sd/-
To,
1) All Dy. CEOs
2) All Industries/Programme Directors
3) All State/Divisional Offices
4) Director, Hindi Cell to issue Hindi translation of the circular
5) Director Publicity to publish the same in ensuing issue of Jagriti.
6) Secretary to Chairperson
7) CEO Cell.

105

Annexure: M
DIRECTORATE OF VILLAGE INDUSTRIES CO-ORDINATION
3
,

No. VIC/Direct Listing/2007-08 Dated 07-06-2007

Sub: Decentralisation of Direct Listing power to
Zonal Dy CEO for SFURTI programme regarding.
Ref: Circular no 6/127/VIC/2002-03 dated 10-09-2002.
Sir,
This refers to the Circular on Direct Listing of Institutions/
societies NGOs (VI Clusters) under KVIC. In this connection:

The Commission has decided that listing of Khadi
institutions cluster under SFURTI programme will be done by
the concerned Zonal Certification Committee and that of the VI
by Zonal Dy CEO.

The other terms and conditions in the Circular dated 10/09/2002 will
remain unchanged. Further, after enlistment of the institutions/
societies with KVIC, the copy of certificate issued may be sent to the
concerned Programme Directors with copy to this Directorate for
record.

Yours faithfully,

Sd/
Director(VIC)
Copy to 1) Honble Members of Zones
2) All Dy CEOs of the Zones
3) Director (EcR)
4) Director (SFURTI)
5) P S to Chairperson
6) All programme Directors for Information.

106

Annexure: N
IRLA ROAD, VILE PARLE(WEST), MUMBAI-400 056

No.SFURTI/WC/B.C./3075/08-09 Date:14/10/2008
CIRCULAR
The implementation of SFURTI Clusters are in progress and most of the clusters
are in the process of creating infrastructural facilities such as setting up CFC,
distribution of tools and equipments, capacity buildings measure and marketing
intervention etc. It is a crucial stage for the Cluster Implementing Agencies to
mobilize the fund for their working capital needs and other financial support services
such as providing Artisans Credit Card, linkages through Self Help Groups(SHGs) and
opening Bank Account etc. An effort made by KVIC yielded good result and large
number of Banks came forward for providing assistance for the clusters and notified
their branches exclusively for SFURTI Cluster of KVIC.

2. It is also felt essential to identify the Bank nearest to the cluster point for
operational convenience of SFURTI cluster so as to pursue that particular bank to
notify the same branch for assistance under SFURTI. The list of the Banks already
notified is enclosed for ready reference. The IAs & CDEs should immediately contact
the Bank branches and put their request for their financial requirement supported by
a detailed worksheet.

3. It is also mandatory to open the bank a/c in the notified branch only for the
convenience of the bank and also IA. In case the notified branch does not suit for the
cluster, the IAs & CDEs in consultation with State / Div. Directors may send the
name of the suitable bank branches existing in the cluster area for getting it notified.

4. The concerned State / Div. Directors may ensure that banks branches for each
cluster under their jurisdiction have been identified according to the convenience of
clusters and the same be informed to the Dte. of SFURTI.

5. The concerned Zonal Dy.CEO may ensure that proper banks linkages are
established for each cluster and should also take all necessary measures, interacting
with the banks Regional Offices, organizing meeting with banks & IAs, making
personal visits to the banks and helping the clusters to avail the assistance from the
banks for successful implementation of SFURTI Programme.

6. This is to be treated as MOST IMPORTANT and MOST URGENT.

(J. S. MISHRA)

To
1. Zonal Dy.CEOs
2. State / Div. Directors
3. Implementing Agencies
4. Technical Agencies
5. Cluster Development
Executives

Copy to:
1. All Members of the Commission
3. OSD to CEO Cell
4. A.O to FA Cell
5. Director(Publicity), for publication in the
ensuing Jagruti
6. Hindi Officer, (Hindi Cell) with a request
to issue Hindi version of this circular.
7. Master file.

Notified banks for SFURTI Clusters by
Bank of Maharashtra

Sr. Name of Cluster Name of Branch/
Branches
Address of the Controlling Office
1 Baramulla Ajas
Manda Gabba
Embroidery
Cluster, Crewal
Shrinagar Dy. General Manager, Delhi Region, 6-30/31,
W.E.A. Ajmal Khan Road, Karolbagh, New
Delhi-110 005.
2 Bandipora
Woollen Khadi
Cluster
Delhi-110 005.
3 Gundura
Woollen Khadi
Cluster
Delhi-110 005.
4 Handmade
Paper
Grand Trunk Road,
Karnal
Asstt. General Manager, Chandigarh Region,
SCO 88-89, Sector-17C, Chandigarh-1600 018
5 Wooden Beads
Cluster, Bhiwani
Rohtak Asstt. General Manager, Chandigarh Region,
6 Phulkari
Cluster, Patiala
Patiala Asstt. General Manager, Chandigarh Region,
7 Amritsar
Woolen Khadi
Cluster
i) Amritsar Main
ii) Amritsar Anjala
Road
Asstt. General Manager, Chandigarh Region,
8 Wooden
Handicraft
Cluster
Hoshiarpur Asstt. General Manager, Chandigarh Region,
9 Balaghat
Bamboo Crafts
Cluster
i) Waraseoni
ii) Balaghat Main
Road
The Regional Manager, Raipur Region, Chawla
Complex, Sai Nagar, Raipur 492 001.
10 Chicken Cluster,
Lucknow
i) Lucknow Main
ii) Aliganj Branch
iii) Aminabad
Branch
iv) Chowk Branch
v) Gomatinagar
Branch
vi) Vikas Nagar
Branch
Asstt. General Manager Lucknow Region, Plot
No.12, Mahanagar Norgh Co.op Hsg. Soc;,
Sect. 9, Vikasnagar, Lucknow 226 024.
11 Khadi Cluster,
Gorakhpur
Keshav Market,
Golghar, Gorakhpur
Asstt. General Manager Lucknow Region, Plot
No.12, Mahanagar Norgh Co.op Hsg. Soc;,
Sect. 9, Vikasnagar, Lucknow 226 024.
12 Food Processing
Centre
i) Kadval
ii) Kharepatan
iii) Kankavali
(Proposed to be
open in Sept. 08)
The Regional Manager
Goa Region, Mahatma Gandhi Road, Panji,
Goa 403 001.
13 Gadchiroli
Pottery Cluster
i) Gandhi Chowk,
Bhadravati
ii) Padoli
Chandrapur Region
Opp. Police Head Quarter, Mul Road,
Chandrapur
14 Amravati-
Wardha
Beekeeping
Cluster
i) Main Road,
Wardha
ii) Hingabghat
iii) Sawalikheda,
Dharni
Asstt. General Manager
Amravati Region
Lahanuji Nagar, Amravati 444 606

108

15 SRT Cotton
Khadi Cluster
i) Udgir Dist. Latur
ii) Deglur, Dist.
Nanded
Latur Region, 28/77, Kirti Mansion, Hanuman
Chowk, Kamdar Road, Adat Bazar, Latur 413
512
16 Neera Cluster Station Road,
Bulsar
Dy. General Manager Ahmedabad Region,
Vasant Chowk, Bhadra, Ahmedabad 380 001.
17 Surendranagar
Khadi Cluster
U.N. Dhebar Road,
Rajkot
Dy. General Manager Ahmedabad Region,
Vasant Chowk, Bhadra, Ahmedabad 380 001.
18 Sisil Fibre
Clusters
Jayanagar,
Bengaluru
Asstt. General Manager Banglore Region, 15
Police Station Road Basawangudi, Banglore
560 005.
19 Mysore Wood
work
i) Mysore Main
Branch
ii) Jayalaxmi
Puram, Mysore
560 005.
20 Belur Khadi
Cluster
i) Hubli Main
Branch
ii) Arvind Nagar,
Hubli
iii) Vijayanagar,
Hubli
560 005.
21 Hebbally Cotton
Khadi Cluster
Dharwad Asstt. General Manager Banglore Region, 15
560 005.
22 Thiruvanathapu
ram Khadi
Cluster
i)
Thiruvananthapura
m
ii) Vattiyurkavu
Cheenai Region, No.04, Sivagnanam Street,
2
nd
Floor, Bldg. No.4, T.Nagar, Chennai 600
017
23 Thalappilly
Cotton Khadi
Cluster
i) Cochin
ii) Kottayam
2
nd
017
24 Sulur Khadi
Cluster
i) Coimbtatore
ii) Tripur
2
nd
017
25 Sankarankovil
Khadi Cluster
i) Sivakasi
ii) Madurai
iii) Nagercoil
2
nd
017
26 Pondicherry
Khadi Cluster
Pondicherry Asstt. General Manager
Cheenai Region No.04, Sivagnanam Street,
2
nd
017
27 Kalpetta
Bamboo Craft
Cluster
Calicut Asstt. General Manager
2
nd
017
28 Bee Keeping
Industry &
Honey
Processing
Calicut Asstt. General Manager
Cheenai Region
No.04, Sivagnanam Street, 2
nd
Floor, Bldg.
No.4, T.Nagar, Chennai 600 017
29 Nachyarkoil
Brass Metal
Production
Cluster,
Thanjavur
i) Madurai
ii) Trichy
iii) Erode
iv) Salem
2
nd
017

109

30 Siddha &
Ayurveda
Cluster,
Dindigul
i) Madurai
ii) Trichy
iii) Erode
iv) Salem
2
nd
017
31 Pottery,
Kanyakumari
i) Nagercoil
ii) Tuticorin
2
nd
017

Corporation Bank
Village Industry Clusters
Sr. State Name of the
Cluster
Name of the Implementing
Agency
Nodal Branch with
Branch Code
1 Jammu
&
Kashmir
Jammu Bee-
keeping cluster
Khadi Gramodyog Seva Sansthan,
Jammu
Jammu (644)
2 Rajasth
an
Pugal Textile
Crafts Cluster
Bikaner Vishudh Khadi Gramodyog
Samiti, Inside Jassusar Gate, Bikaner,
Rajasthan
Bikaner (683)
3 Harayan
a
Handmade Paper Khadi Ashram Ram Nagar, Karnal,
Harayana
Karnal (548)
4 Wooden Beads
Cluster, Bhiwani
Gramin Sewa Mandal 153-Prem Nagar,
Daya, Hissar
Hissar (1025)
5 Leather Goods,
Ambala
Society for National Education
Entrepreneurship & Development
Ambala (496)
6 Punjab Phulkari Cluster
Patiala
The Patiala Handicraft W. Co. Ind. Soc;
Ltd; 36, Ranbir Marg, Model Town
Patiala
Patiala (610)
7 Wooden
Handicrafts
Cluster,
Hoshiarpur
The Rural Environment Enterprises
Development Society, #1116, Sector
33C, Chandigarh
Chandigarh
(646)
8 Desi Punjabi Jutli
Cluster
Regional Centre for Entrepreneurship
Development, RCED, SCO 313-314,
Sector 35B, Chandigarh
Chandigarh
(646)
9 Uttar
Pradesh
Horns & Bone
Products
Moradabad
Rudayan Gram Vikas Ashram, Ramlila
Maidan Kot Purvi Sambal Dist.
Moradabad
Moradabad
(612)
10 Honey Processing
Cluster
Mahalakshmi Khadi Gramodyog
Sansthan, Saharanpur, Dist. Meerut
Meerut (505)
11 Muari Cane &
Bamboo Cluster
Khadi Gramodyog Vikas Samithi,
Sindhora, Varanasi
Varanasi (505)
12 West
Bengal
Bee Keeping
Cluster
West Bengal Bee Keepers Association,
21, Ma Saroda Road, Napara Barasat,
North 24 Paraganas,Kolkata 125
Kolkata-Salt
Lake City (594)
13 Bihar Bee Keeping
Cluster
Tirhul Dugdh Utpadak Sahakari Sangh
Ltd. Kolhua Dist. Muzaffarpur 843 108
Muzaffarpur
(1056)
14 Andhra
Pradesh
Hindupur
Agarbatti Cluster
Anantapur
Shree Neelakanteshwara Khadi Silk
Gramodyog Sanstha, 4/271, Melapur,
Hindupur 515 201
Hindupur (156)
15 Chittor, Wood
Carving Craft
Cluster
Dolphin Roofing Tiles Co.Op. Soc;, Ltd.
Kantakapalli Village 535 240,
Kothavalasa (M), Vizianagaram
Vizianagaram
(331)
16 Karnata
ka
Sisil Fibre
Clusters
Initiatives for Development through
participation of marginalized section
(IDPMS) 440, 6
th
Cross, 7
th
Block
Jayanagar West, Banglore 560 082.
Bangalore-
Jayanagar (74)

110

17 Mysore Wood
Work
Karnataka Handicrafts Artisans Welfare
Association, (KHAWA), 14/B, 4
th
Cross
Water Tank Road, Mysore 7
Bannimantap
Extn. Mysore
(638)
18 Kerala Bee Keeping Kozhikode Sarvodaya Sangh, P.B. No.
216, S.M. Street, Calicut 673 001
Kozhikode
(Calicut) (23)
19 Tamil
nadu
Nachyarkoil Brass
Metal Production
Cluster
Thanjavur West Sarvodaya Sangh, 28,
Giri Road, Srinivasapuram, Thanjavur
613 009.
Thanjavur (372)
20 Siddha &
Ayurveda Cluster,
Dindigul
Lakhmi Seva Sangam Gandhigram
Trust, Dindigul, Tamilnadu-624 302
Dindigul (171)
21 Thiruchandur
Agarbatti Cluster
Avarmpalayam Sarvodaya Sangh,
Coimbatore Dist.
Coimbatore
Main (21)
B) Khadi Cluster : North Zone:
Sr State Place Name of the
Cluster
Name of the
implementing
agency
Name of the
identified
branch
1 Punjab Amritsar Amritsar Woolen
Khadi Cluster
Ashram, Amritsar
Amritsar (307)
2 Rajasthan Jaipur Jhalawar Khadi
Cluster
Vinoba Seva Samity,
Jaipur
Jaipur (303)
Central Zone
Cluster
Name of the
implementing agency
Name of the
identified
branch
3 Uttar
Pradesh
Gorakhpur Gorakhpur
Cotton Khadi
Cluster
Ashram, Gorakhpur
Gorakhpur (364)
4 Lucknow Bharaich Khadi
Cluster
Ashram, Lucknow
Lucknow (267)
Western Zone
Cluster
Name of the
implementing agency
Name of the
identified
branch
5 Gujarat Rajkot Cotton Khadi
Cluster
Saurashtra Rachnatmak
Samiti, Rajkot
Rajkot (191)
6 Vadhwan
Polyvastra
Cluster
Khadi Gr.Sangh
(Samanvay) Rajkot
Rajkot (191)
7 Maharas
htra
Nanded Swami
Ramanand Tirth
Khadi Cluster
Marathwada Khadi
Samiti, Nanded
Nanded (1028)
South Zone
Cluster
Name of the
implementing agency
Name of the
identified
branch
8 Karnataka Hubli Belur Khadi
Cluster
Karnataka Khadi Gr.
Sangh, Hubli
NCM, Hubli (64)
9 Dharwad Hebbilly Cotton
Khadi Cluster
Dharwad T1 Hebballi
K.S. Sangh, Dharwar
Dharwad (26)
10 Kerala Ernakulam Thalappilly
Cotton Khadi
Cluster
Kerala Khadi & V.I.
Assn. Cochin
Ernakulam (77)
11 Tamilnadu Coimbatore Sulur Khadi
Cluster
Tamilnadu Khadi & V.I.
Board, Chennai
Coimbatore (21)
12 Tirunelvali Sankarankovil
Khadi Cluster
Sankarankoil Sarvodaya
Sangh
Tirunelvali (374)
13 Pondicherry Pondicherry Pondicherry KVIB & Pondicherry

111

Khadi Cluster Pondicherry S. Sangh (442)
Eastern Zone
Cluster
Name of the
implementing agency
Name of the
identified
branch
15 Jharkhand Ranchi Palmaru Khadi
Cluster
Chotanagapur Khadi Gr.
Sansthan, Tiril
Ranchi (1058)

Oriental Bank of Commerce

Sr. Name & Location of the
Cluster
Name of the Notified
Branch
Name of the
Regional
Office
Name of
the State
1 Pidurguralla Burnt Lime
Cluster
Guntur Hyderabad A.P.
2 Collection of Husk, Fibre
extraction, Spinning, Dying &
Crushed Coir
Guwahati Kolkata Assam
3 Bee Keeping Cluster Muzaffarpur Bhubaneshwar Bihar
4 Extal Bell Metal Cluster
(Dhokra Casting)
Raipur (G.T. Road) Bhopal Chattisgar
h
5 Morgim Coir Cluster Fruit &
Vegetable Processing Cluster
Panjim, Goa Pune Goa
6 Vadhwan Polyster Cluster
Cotton Khadi Cluster
Rajkot (Panchvati) Ahmedabad Gujarat
7 Tenurpur Woollen Khadi
Cluster
Kullu Chandigarh H.P.
8 Una Plant Fibre Cluster Una Chandigarh H.P.
9 Kurukshetra Cotton Khadi
Cluster
Thanesar Karnal Harayana
10 Handmade Paper Karnal (G.T.Road) Karnal Harayana
11 Wooden Beads Cluster Hissar (Railway Road) Karnal Harayana
12 Leather Goods, Ambala Ambala (Sadar Bazar) Karnal Harayana
13 Bandipora Woollen Khadi
Cluster
Srinagar Amritsar J & K
14 Jammu Beekeeping Cluster Jammu (Raghunath
Bazar)
Amritsar J & K
15 Palamu Khadi Cluster Ranchi (Kutchery Road) Durgapur Jharkhand
16 Belur Khadi Cluster Hubli Banglore Karnataka
17 Mysore Wood Work Mysore Banglore Karnataka
18 Thalappilly Cotton Khadi
Cluster
Ernakulam Chennai Kerala
19 Thiruvananthapuram Khadi
Cluster Chirainkeezhu Coir
Cluster
Thiruvananthapuram Chennai Kerala
20 Balaghat Bamboo Crafts,
Balaghat
Bhopal (Hamidia Road) Bhopal M.P.
21 Gadchiroli Pottery Cluster Chandrapur Pune Maharashtr
a
22 Pondicherry Khadi Cluster Pondicherry Chennai Pondicherr
y
23 Amritsar Woollen Khadi
Cluster
Amritsar, SSI Branch Amritsar, Punjab
24 Jalandhar Cotton Khadi
Cluster
Jallandhar SSI, Branch Amritsar Punjab
25 Phulkari Cluster Patiala ( A Tank) Patiala Punjab

112

26 Wooden Handicrafts Cluster Hoshiarpur (Roshan
Road)
Jalandhar Punjab
27 Desi Punjabi Juti Ferozpur City (Bagdadi
Gate)
Bhatinda Punjab
28 Bikaner Khadi Cluster
Khadi Mandir Bikaner
Bikaner Srigangangar Rajasthan
29 Jhalawar Khadi Cluster Jaipur (Johri Bazar) Jaipur Rajasthan
30 Coimbatore Khadi Cluster
Thiruchandur Agarbathi
Cluster
Coimbatore Chennai Tamilnadu
31 Gorakhpur Cotton Khadi
Cluster
Gorakhpur (Bank Road) Lucknow U.P.
32 Tikarmafi Woollen & Cotton
Khadi Cluster
Amla Processing
Sultanpur Ghajiabad U.P.
33 Saharanpur Cotton Khadi
Cluster
Saharanpur Deharadun U.P.
34 Baharaiach Khadi Cluster Lucknow (Hazrat Ganj) Lucknow U.P.
35 Kanpur Dehat Leather Goods Kanpur, The Mall Lucknow U.P.
36 Mauri Cane & Bamboo Cluster Varanasi (Nichi Bagh) Lucknow U.P.
37 Horns & Bone Products Moradabad Bareilly U.P.
38 Haldwani Khadi Cluster Haldwani Bareilly U.P.
39 Malda Khadi Cluster Malda Kolkata W.B.

Punjab & National Bank

Sr. Activity Name of the Branch Distinctive
No.
1 Chicken Work Chowk, Lucknow 303
2 Chinhant Pottery Hal Township, Lucknow 241
3 Bee Keeping Simra, Muzaffarpur 3050
4 Shell Button Products Gopalganj, Bihar 3938
5 Khadi Cluster Haldwani Main, Uttarakhand 019600
6 Neera Cluster Valsad, Gujarat 3754
7 Cotton Khadi Cluster Thanesar, Kurukshetra 087300
8 Phulkari Cluster Bhadson Road, Patiala 2985
9 Wooden Beads Cluster Devsar, Bhiwani 2098
10 Handmade Paper Prem Nagar, Karnal 0745
11 Cotton & Muslin Khadi Kirruppam Rd, Ernakulam 435700
12 Cotton & Muslin Khadi TRIVENDRUM, Stn Rd, Hanex Bldg 435900
13 Bamboo products Kalpeta, kERALA 426400
14 Honey processing Naminda, Kozhikode 432100
15 Bassi Khadi Cluster Dausa, Rajasthan 3909
16 Jhalawar Khadi Cluster Malaviya Nagar, Jaipur 4110
17 Beekeeping Ganyal Dist, Jammu, J.K.

Punjab & Sindh Bank
Sr. Name of the State Name of the Branches
1 Punjab PSB, Hall Bazar, Amritsar
2 Punjab PSB, Civil Lines, Amritsar
3 Haryana PSB, Kurukshetra
4 Haryana PSB, Bhivani
5 Haryana PSB, Pipli
6 Haryana PSB, Karnal

113

7 Utter Pradesh Gomti NO.5, Lucknow
8 Uttar Prtadesh Kanpur
9 Maharashtra Nanded

SUMMARY OF RESPONSES RECEIVED FROM
DIFFERENT BANKS
(i) Oriental Bank of Commerce The bank notified 40
bank branches (38 for KVI and 2 for Coir Board) vide letter
dated September, 2008 issued under the signature of Shri Alok
K. Mishra,, Chairman & Managing Director, Oriental Bank of
Commerce Harsha Bhavan, E-Block, Cannaught Place, New
Delhi-110 001
(ii) Corporation Bank, Mangalore
The bank notified 36 bank branches vide letter
PSW/RAO/F27A/1810/2008/ dated 26
th
August, 2008 issued
under the signature of Shri K. Rama Murthy. General Manager,
Corporation Bank, Mangaladevi Temple Road, Mangalore 575
0010
(iii) Bank of Maharashtra
The bank notified 31 bank branches vide letter
AXI/PSRC/KVIC/SFURTI/2008-09/1786 dated 27
th
August, 2008
issued under the signature of the Dy. General Manager. Bank of
Maharashtra, Priority Sector & Retail Credit, H.O., Lokmangal,
1501 Shivaji Nagar, PUNE 411 005.
(iv) Punjab National Bank
The bank notified 20 bank branches (17 for KVIC and 3 for
Coir Board) vide letter dated 4
th
October, 2008 issued under the
signature of Shri Jagat Ram, General Manager, H.O. Bhikaji
Cama Palace, New Delhi 110 607.
(v) Punjab Sindh Bank
The Bank notified 9 bank branches vide letter
HOPS/KVIC/2401/2008 dt. 15
th
September, 2008 issued under
the signature of Shri Devinder Singh, Chief General Manager
(A), Punjab & Sind Bank, H.O. Priority Sector Dept., 7
th
Floor,
Bank House, 21, Rajendra Place, New Delhi 110 008.
(vi) Bank of Baroda
The bank responding positively, informed that they have
already notified the scheme their Regional authorities
requesting them to identify the branches at the identified
clusters. In this effect letter under reference BCC:SME:100/2587
dt.27
th
August, 2008 issued under the signature of Shri S.P.
Agarwal, General Manager, Bank of Barod, ,, Baroda Corporate
Centre,, C-26, G-Block,, Bandra Kurla Complex, Mumbai-400
051.
(vii) Central Bank of India
The bank responding positively vide their letter C.O. RD/2008-
09/1126 dt. 30.08.2008 issued under the signature of Shri K.A.
Somayajulu, General Manager, Central Bank, Chander Mukhi,

114

Nariman Point, Mumbai 400 021 and informed that they are in
the process of identifying the branches.
Indian Overseas Bank
The bank responding positively vide their letter C.O. SME/08-
09/527 dt. 2.09..2008 issued under the signature Dr. S.
Elangovan General Manager, Indian Overseas Bank C.O. P.B.
No.3765, No.763Anna Salai, Chennai 600 002 informed that
they have identified the bank branches for SFURTI and
their respective Regional Manaagers have been instructed
to notify such branches and they have issued instructions for
banking support to the clusters.
(i) Canara Bank
The bank responding positively vide their letter
ECEW/SBU/55/0611/2008-09 dt. 28.8.2008 issued under the
signature Shri K. Venkataramaiah, General Manager, Canara
Bank, SME Business Unit, Emerging Corporate Entrepreneurs
Wing, H.O., 112 J C Road, Bangalore 560 002 informed that the
bank view that the ministry may identified may one particular
bank for each cluster which is having better network and
presence in that area to service the clusters. The IA,CDE,NA
may identify a convenient bank to the stakeholders.
(ii) UCO Bank
The bank responding positively vide their letter HO/PS/F-
22E/1000/2008-09 dt 13.9.2008 issued under the signature of
Dy.General Manager, UCO Bank, Priority Sector Department,
H.O., 10 BTM Sarani, Kolkata 700 001 informed that they are in
the process of identifying the suitable bank branches.

List of notified bank branches from 1 to v above enclosed. The
banks who have not responded may be contacted by IA/TA/CDE on
the basis of the letter of Ministry of Finance, Dept. of financial
Services dated 20
th
April, 2008 issued under the signature of
Economic Advisor. The copy already made available to all the
concerned.

115

Annexure: O

SFURTI/CFC/Policy /2008-09 21.11.2008
CIRCULAR
Sub: Cost for construction/repair of CFC reg.
As a part of implementation of SFURTI clusters by KVIC through its
implementing agency, it has been decided to allow to meet-out the cost
towards the construction/repair of CFC shed by re-appropriating the original
allocation in the manner as underlined.
(Rupees in
lakhs)
Fund share for CFC Shed Type of
cluster
Fund provision under
O.M. for CFC NA IA Total
A. Khadi 15.00 2.25 0.75 3.00
B. V.I. 30.00 4.50 1.50 6.00
1. Land cost is not admissible. No additional budget is allowed and be re-
appropriated within the existing budget.
2. Need for construction/repair of the CFC shed and its cost estimate,
design/type of structure will be decided at the level of an appropriate
committee headed by the State/Divisional Director. It is mandatory to
incorporate it in the DSR and Annual Action Plan of the cluster. A copy
of the same may be endorsed to the Directorate of SFURTI for obtaining
ratification.
3. Construction/repair of CFC shed will be the responsibility of
Implementing Agency. It should be completed within six months from
the date of issuance of this circular. In case the construction/repair cost
of the CFC shed exceeds the above mentioned limit, the IA has to
increase their share for completion of the work and an undertaking may
be furnished by the IA for the same.
4. The constructed/repaired shed for CFC will be with the implementing
agency of the cluster for exclusive use of the same for the SFURTI
program by artisans/IA.
5. The assets (movable & immovable) created or purchased under SFURTI
program will remain as the property of KVIC in terms of agreement
entered and subsequently, on successful implementation of the
programme for a fixed tenure, which will be decided by Commission
may be transferred to the SHGs of Artisans/Artisans Association or
Consortium/Implementing Agency as decided by the Commission for the
common use of artisans.
6. In Village Industry clusters, wherein the restricted ceiling of 20%
allocation is considered less for construction/repair of CFC shed, in that
case it will be dealt separately on submission of detailed justification
and as per the need spelt out. A local level committee with the
recommendation of State/Divisional Director may send an appropriate
proposal to Director, SFURTI for obtaining approval of competent
authority. However, scope of such enhancement is very limited and it
will be considered only for the deserving V.I. clusters on case to case
basis.
1. Zonal Dy. CEOs
2. State / Div. Directors

116

4. Technical Agencies
5. Cluster Development Executives
6. Copy to:
9. OSD to CEO Cell
10. A.O to FA Cell
11. Director(Publicity), for publication in the ensuing Jagruti
12. Hindi Officer, (Hindi Cell) with a request to issue Hindi version of
this circular.
13. Master file
PROPOSAL
CONSTRUCTION/REPAIR OF CFC

Name of Cluster
Name of Implementing Agency
Name of Technical Agency
Proposed name of CFC
Proposed location of CFC
Availability of Land Available/ Not available
Area of available land(in sq mtr)

1. Plan for establishment of CFC
Description of activities and Equipments/
tools/ machines
No of units Value (Rs in Lakhs)

2. Details of Construction/Repair proposed for CFC
Particulars Construction Repair
a Area proposed (in sq metre)
b Estimated cost (Rs in Lakhs)
c Total Estimated cost (Rs in Lakhs)
The civil estimate with civil plan for the above cost, approved by the
committee may be attached with the proposal
d Fund Source (Rs in Lakhs)

From CFC Head IA Source Any Other
Source
Total

e Time schedule for completion of
Construction/ repair of CFC

Technical Agency CDE Implementing Agency

State /Divisional Director, KVIC

117

Annexure: P

No.DSFURTI/Policy/6502/2008-09 Date: 21.11.2008
CIRCULAR
Sub: Allocation towards cost for Implementing Agency reg.
As a part of implementation of Khadi and Village Industries clusters
under SFURTI programme, the funds amounting to Rs 10. 00 lakhs per luster
is being provided under the heads of Cost of Implementing Agency for a
total period of five years. The implementing agency of the cluster may utilize
the said funds for the purposes/activities mentioned hereunder.
Sr
No
Purpose/Activities Fund Allo
cation (in %)
1 TA/DA for IA representatives on Official work out side the cluster 15%
2 TA/DA for CDE on Official work out side the cluster 15%
3 Expenses towards establishment of cluster Office procurement
of office equipments such as Furniture fixtures, fax machine,
telephone, computer, lap top etc.
20%
4 Contribution towards construction of Common Workshed for CFC 20%*
5 Establishment expenses for cluster office , office rent, electricity,
telephone charges,organizing meetings, guest expenses, press
meets, coordination cost etc
20%
6 Miscellaneous expenses 10%
1. Note- * - Incase of funds requirement for construction of common
Workshed for CFC, in addition to the existing provision under the CFC head, if
required, a maximum of 20 % of the Cost of Implementing Agency may be
allowed to utilize/contribute towards construction of Work Shed for CFC. The
said provision is allowed based on strict assessment of the need for
construction of the Workshed for CFC. In case, if CFC Workshed already
exists and no need arises, then the said funds can be utilized for other heads
as per the need.
2. The above mentioned headwise percentage of fund allocations are
tentative and indicative. Based on the need at the cluster, the intra head
adjustments are permitted with the approval of State/Divisional Director
concerned.
3. This is issued with the approval of Chief Executive Officer.

Director (SFURTI)
To,
i) Zonal Dy. CEOs
ii) State / Div. Directors
iii) Implementing
Agencies
iv) Technical Agencies

Copy to
i) All Members of the Commission
ii) Secretary to Chairperson
iii) OSD to CEO Cell
iv) A.O to FA Cell
v) Director(Publicity), for publication in
the ensuing Jagruti
vi) Hindi Officer, (Hindi Cell) with a
request to issue Hindi version of this
circular.
vii) Master file

118

Annexure: Q
3 ,


No. KVIC/SFURTI/Policy/6505 /2008-09 Date: 24-11-2008

CIRCULAR

Sub: Nominating the Nodal Officer for each cluster under
SFURTI in the State/Div Office: regarding.

SFURTI being prestigious programme of Commission & Govt. of
India, the time bound action, programme implementation, association
of all stake holders, achievements and its impact on increase of
income of beneficiary etc are reviewed at different zones under the
chairmanship of CEO & Chairperson.
2. As the Ministry and the Commission are asking for status position of
each cluster, we have already issued Office Order no 2023 in which
point of nomination of Nodal Officer is given.
3. It is hoped, by now you might have nominated the Nodal Officer, ie,
not below the rank of ADO, preferably having experience in the same
line for regular guiding, activating and monitoring the cluster of
State/Divisional level for each cluster for speedy implementation of
the cluster, if yes, kindly inform to this Office details along with his
/her mobile number, residential nos, so that the concerned Nodal
Officer may be contacted for taking current position of the cluster as
and when required.
4. It is further directed that whenever the Nodal Officer is not
nominated, they may be nominated at the earliest and inform to this
Office.
5. This is issued with the approval of CEO

Sd/-
Director(SFURTI)
To,
All State/Divisional Director

Copy to: To,
1. All Dy. CEOs
2. All Industries/Programme Directors
3. All State/Divisional Offices
4. Director, Hindi Cell to issue Hindi translation of the
circular
5. Director Publicity to publish the same in ensuing issue of
Jagriti.
CEO Cell.

119

Annexure: R
Khadi & Village Industries Commission,
3, Irla Road, Vile Parle (West), Mumbai 400 056
No.SFURTI/TAs/Monitoring/2008-09 Date: March
12, 2009
CIRCULAR
Sub: Support services of TAs
All the Clusters are in full swing of Implementation which needs
attention from all the concerned.
2. The responsibilities of the Technical Agencies (TAs) have been clearly spelt
out in the agreement entered between TA and KVIC which requires assured
compliances by all the TAs.
3. At least one full time Resource Person should be deputed for every four
clusters, where a TA has been assigned the job of more than four clusters.
4.The TAs representative/ Resource person should visit every month to the
cluster and stay at least 2-3 days in each cluster, guide the IA and CDE,
personally assess the progress taking place in the cluster and extend his/her
advice for effective momentum and better implementation of cluster in the
time bound manner or any other mid- course correction needed.
5. As per the specific need of the cluster, the TA is free to engage a subject
expert/expert agency. The expenditure coming on engaging such subject
expert/expert agency may be met out of TA cost.
6. TA must initiate with the Business Development Service (BDS) providers
and see the products produced in the cluster are properly marketed. The
Technical Agency associating the CDE is expected to establish proper network
of cluster constituents/other stakeholders and ensure the benefits are passed
to each and every artisan engaged in the cluster.
7. T.A. must ensure that the Self Help Groups (SHGs) of artisans be formed,
associating IA and CDE to enhance the confidence and the earnings of the
artisans and ensure local governance and proper participation of all stake
holders.
8. TA must ensure the reporting is made promptly. The monitoring and
reporting the progress of the clusters to the concerned State Director with a
copy endorsed to SFURTI Directorate, in the prescribed format circulated to
all the cluster constituents must be done regularly.
9.TA must guide and train the Cluster Development Executive (CDE) from
time to time as required in the programme and also impart training to the
Nodal Officers, IA as per need.

(J.S. Mishra)
Copy forwarded to the following for
information & necessary action:-
1. All the Technical Agencies
2. Zonal Dy. CEOs
3. State/Divisional Directors
6. Program/Industry Directors
Copy for information to:-
3. OSD to CEO Cell
4. A.O. to FA Cell
5. Director (Publicity) for publication in the ensuing Jagruti
6. Hindi Officer (Hindi Cell) with a request to issue Hindi version of this
circular
7. Master File

120

Annexure: S
Gramodaya, 3, Irla Road, Vile
Parle (West), Mumbai 400 056
No.SFURTI/Monitoring/Policy/2009-10 Date : 1
st
June, 2009
CIRCULAR

KVIC has been implementing a flagship Programme SFURTI
Scheme for ensuring all round development of the
beneficiaries/artisans associated with the clusters. Due to constant
efforts and monitoring, most of the clusters have started achieving the
given objectives but some clusters still need to be implemented
effectively. In order to adhere action plan and time table for
implementation of the SFURTI clusters, Implementing Agencies and
Cluster Development Executives should ensure the compliance of the
directions given by the Central Office, KVIC, from time to time under
the close supervision of TAs, Nodal Officers and State/Divisional
Directors.
2. The following is further reiterated
(i) To adhere time schedule for completion of the cluster by
which each and every component of the cluster will be completed.
(ii) Timely submission of utilisation certificate of funds
released to the clusters should be ensured.
(iii) Clusters should maintain a register indicating Artisans
benefited with their Name, Address, Educational qualification,
skill, wages received before and after launching of SFURTI
Programme so that real assessment could be made that these artisans
are really benefited or not. Apart from this, categorisation of the
artisans, their level of skill and time devoted for the work
should also to be registered.
(iv) To assess actual increase in production and wages earned after
implementation of SFURTI Programme, a separate register should
be maintained recording quantum of production, sales, No. of
employment before and after launching of SFURTI Programme.
This will facilitate to get clear picture of the benefits extended to the
artisans from 2007-08 onwards.
(v) It should be ensured that Implementing Agencies participate in
Seminars, Melas, Expos and Workshops etc., and also organise
the same to increase the marketability of the products produced under
the clusters. In such events, important officials of Government,
Ministerial departments and other like minded agencies engaged are to
be invited to get their suggestions as well as to make good publicity.
(vi) The catalogue of the products produced under the cluster
should also be prepared on priority basis. Similarly, the power
point presentation should also be kept ready, in case of visit of
cluster by any dignitaries, it will facilitate I.A. to show progress of the
cluster to them.
-2-
(vii) The IAs should ensure that the products produced under
the SFURTI are properly labeled such as product specification,
date of manufacturing, date of expiry, quantity and quality etc. as per
the requirement with proper details i.e. product manufactured under
the assistance of SFURTI, KVIC.

121

(viii) Artisans working under the clusters should be given
Identity Cards, Credit Cards and also other essential benefit to
improve their social and economic status.
2. The State/Divisional Directors should constitute a committee
headed by themselves and ensure conducting regular follow up,
monitoring, review and visit to all the clusters under their jurisdictions
and identify the weak areas and to take remedial measures on priority
as per the format of Visit Report which is enclosed herewith including
verification of the remarks given by the Director (Finance)
communicated along with the Release Advice and forward the same to
the Directorate of SFURTI not later than 30
th
June, 2009.

3. All concerned IAs, CDEs, TAs, Nodal Officers and
State/Divisional Directors should take note of the above instructions
and ensure the compliance so that real objective of the scheme could
be achieved timely.
Encl: A/a.

(J.S. Mishra)

Copy forwarded to the following for information and necessary
action

1. All Zonal Dy. CEOs
2. All heads of offices of KVIC in and outside Mumbai.
3. All Implementing Agencies, SFURTI programme
4. All Technical Agencies, SFURTI programme
5. All CDEs, SFURTI programme

Copy for information to-

1. All members of the Commission
2. Chief Vigilance Officer
4. OSD to CEO Cell
5. A.O. to F.A. Cell
6. Director (Publicity), KVIC, Mumbai in duplicate for publication
in the ensuing issue of Jagruti for Media and PR Cell.
7. Hindi Officer, Hindi Cell, KVIC, Mumbai with a request to issue
Hind version of this Circular
8. Grievances Officer, KVIC, Mumbai
9. Public Relation Officer, KVIC, Mumbai
10. Director, DIT, KVIC, Mumbai for placing in website.
11. Information Cell (Adm. II)

VISIT REPORT
Name of State/Divisional Office ..
Name & Designation of Officers visited
1.
2. .
Sr. Particulars
1. Name of the cluster
a) Date of its functional
b) No. of CFC

2. Name of the I.A.
3. Name of the CDE
4. Name of the T.A.
5. Name of the Nodal officer
6. General financial position of IA

A. FINANCIAL STATUS (Rupees in lakhs)
Total fund up to 31
st
March 2009 Budget heads
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Replacement of Charkhas/
looms

Common Facility Centre
Product Development &
Design

123

Market Promotion Assistance
Capacity Building
Cost of I.A
Cost of CDE
Cost of TA

B. PHYSICAL PROGRESS

Quantity Sr. Inputs provided
(For Khadi cluster) Nos approved
as per DSR
Nos
procured
Balance to be
procured
Fund available
as balance
Reasons
Replacement of Charkhas & Looms
No. of charkhas
a) NMC charkhas
b) E- charkhas
No. of looms
No. of improved looms
1
Other looms (for muslin/silk/etc.)
Establishment of CFC for Khadi & V.I. clusters Observations/remarks 2a
Land: a) Available/ Not available
b) If available, area & other details

b Building
a) Available/Constructed / Not constructed
b) If constructed, area & other details
c) If not available/ not constructed, reasons

124

Particulars Nos
approved
Nos procured Balance to
be procured
Fund available as
balance
Reasons
Tools & equipment to the
artisans (in case of V.I.)

Machineries (for Khadi / V.I.)
Inputs provided Observations/remarks
3 Design and product development support
a) Designer appointed? Contract base?
b) Activities undertaken
c) Output

4 Market promotion assistance
a) Exhibitions participated
b) Business generated
c) Export membership
d) Product catalogue/capacity
e) Other marketing intervention (Show room, etc.)

5 Linkage with Banks/any other organisation for Working capital
a) Name of the bank
b) DRDA
c) Other sources
d) Output

6 Exposure visits to other clusters & institutions undertaken
a) No. of artisans/persons
b) No. of visits
c) Places visited
d) Outcome

7 Need based trainings provided
a) Types of training
b) No. of training
c) No. of participants
d) Outcome

125

8 Support for cluster level networks

9 New Business Development Service providers

C. IMPACT OF SFURTI PROGRAMME
10 Capability enhancing measures like health/literacy camps, etc undertaken
a) Health camp
b) Eye camp
c) Insurance/ pension schemes
d) Others

11 Total families benefited Existing & New (since SFURTI intervention)
a) SC
b) ST
c) OBC
d) Minority
e) Women
f) Others

12 Any other arrangements

13 Wages increased
a) Earlier income
b) Present income
c) Percentage increased

14 Increase trends in turnover
Production
(i) Product Range:
(ii) Quantity
(iii) Value Rs. In lakhs

126

b) Sales
(iv) Product Range:
(v) Quantity
(vi) Value Rs. In lakhs

c) Savings Rs. In lakhs
15 Range of average wage increase (Rs.)
16 Range of increase in number of days of work
17 Social empowerment
18 Specific observations/critical gap
19 Compliance of observations of Finance (informed cluster specific with
release advise or separately)

20 Security of funds
a) EM created/ not created
b) If created, give details
c) If not created, give reasons
d) Hypothecation Deed details

21 Remarks/ recommendation of State/Divisional Director
( State/Divisional Director should indicate his views specifically in terms of
achieving objectives of SFURTI programme and clear recommendation for
subsequent continuation of programme/release of fund)

Date: Signature

Name: Designation

Annexure: T
SFURTI/Monitoring /R-M/2009-10 Date10
th
December 2009

CIRCULAR
Sub: - Monitoring of SFURTI clusters at the Field level
(SFURTI) is one of the several prestigious schemes implemented by
KVIC, in cluster mode, for the development of Khadi and Traditional
Village Industries in different parts of the country. 29 Khadi and 50
Village Industries Clusters have been approved by the Scheme
Steering Committee (SSC). Diagnostic study report (DSR) and annual
action plan of these clusters have also been approved by SSC and
requisite funds have been released through respective State/Divisional
Offices of KVIC.
2. Considering the importance of SFURTI Programme, it is absolutely
essential to concentrate with extreme zeal to ensure achievement of
the overall objectives of creation of sustainable employment
opportunities throughout the year with remunerative wages to the
artisans associated with the clusters. Since most of the clusters are in
active stage of implementation, it is now of prime importance to
monitor and evaluate the clusters at the field level in regular intervals.
3. It is, therefore, essential to conduct field level review meetings at
State / Divisional as well as Zonal level to evaluate the actual status
of the clusters and take need-based interventions or corrective
measures.
A. State / Divisional level monitoring meetings:
4. State/Divisional Director is the senior functionary available at the
threshold of clusters. They are required to spare qualitative time in
successful implementation of SFURTI clusters under their jurisdiction.
For better co-ordination and close monitoring of the clusters, State/
Division level monitoring meeting, should be conducted every month,
consecutively at State/Divisional office and in the selected cluster
premises. The fund provision and operational guidelines of
State/Divisional level monitoring meetings are placed at Annexure I
B. Zonal level monitoring meetings:
5. Deputy Chief Executive Officer of the zone will organize Zonal Level
review meetings (quarterly) associating all State/Divisional Directors
of the Zone. Minutes of the said meetings alongwith and observations
elaborating specific achievements in quantitative terms should be
submitted to the undersigned in the format provided by MSME
foundation. The Fund provision and operational guidelines of Zonal
Level Monitoring meeting are placed at Annexure II.

128

6. The schedule of the monitoring meetings at State/ Divisional as well
as Zonal level may be made available to the Director, SFURTI well in
advance.
Encl: Formats at above.
(J. S. Mishra)

To

1. All Zonal Dy. CEOs
2. All State / Divisional Directors
3. All Industry Programme Directors in Central Office, Mumbai
4. All Implementing Agencies
5. All Technical Agencies
6. All Cluster Development Executives

Copy to:

1. Joint Secretary, Ministry of MSME, Udyog Bhavan, New Delhi.
3. CEOs of all State/ UT KVI Boards
5. OSD to CEO Cell
7. Hindi Officer (Hindi Cell) with a request to issue Hindi version
of this Circular
8. AO to FA Cell
9. Grievances officer, KVIC, Mumbai
10. Public Relations Officer, KVIC, Mumbai
11. Director, DIT, KVIC Mumbai for placing in the website
12. Information Cell
13. Master file.

129

ANNEXURE I
State/Divisional level monitoring meetings of the cluster:
Duration of the meeting: 1 day
Period: Bi-monthly
Participants: IA, CDE, TA, Nodal Officer, Artisans (not
less than 5 artisans of the cluster)
Fund provision: Rs.2000/- for each cluster to meet out
the stationery, printing, refreshment and
other miscellaneous expenditure.

The activities to be reviewed:
1. CDE Working System:

i) No. of SHG formed with credit linkage.
ii) No. of days worked at Head Quarter and in Cluster
places, and its out comes. Interaction with artisans,
out come of visits, convergence,
iii) CDCG Meeting organized Reporting and other
deliverables,
iv) Payment of salary and conveyance charges,
v) Other related issued in respect of working of CDE.
2. T.A. working System:

i) Training and guidance to CDE/IAs Artisans
ii) Formation of SHGs.
iii) No of visits to the clusters, attending CDCG and other
meetings.
iv) Coordination of cluster activities,
v) providing linkages for working capital,
marketing/design intervention/product
development/CFC/BDS
vi) compliance of Circular
No.SFURTI/TAs/Monitoring/2008-09 dated March 12,
2009,
vii) Payment of TA cost.
viii) Implementation of activities as per the AAP.
ix) Monitoring and reporting system to State/Divisional
Office
x) Other related issued in respect of Technical Agency.
3. I.A. Working System:

i) Coordination and linkages with CDE and TA.
ii) Regular meeting with artisans

130

iii) Infrastructural support to the cluster
iv) Ensuring the contribution of IA,
v) Ensuring CFC facilities to the artisans.
vi) Proper usage of funds under IA cost.
vii) Other related issued in respect of working of IA.

4. Nodal Officer working system:

i) Visits of Nodal Officer to the Cluster, observation
communicated to State Director and remedial action
initiated
ii) Proper reporting on functioning of Cluster
iii) Reporting on of IA.CDE and TA system
iv) Observations on adhering the Annual Action Plan and
utilization of funds
v) Observations on benefits to the artisans/cluster stake
holders
vi) Reporting on turn over including production, sale and
earnings
vii) Participating in CDCG meetings
viii) Timely submission of monthly/quarterly monitoring
reports

5. Review of activities and result
A. Physical Review
i) Commencement of activities as per the approved
Annual action Plan
ii) Evaluation of outcome.
iii) Ensuring CFC facility to all the artisans
iv) Overall status for working of CFC
v) Distribution of tools and equipments to the artisans
vi) Production/Sale and Savings
vii) Benefits to the artisans and stake holders of the
cluster
viii) Artisan ID, credit and health cards
ix) Social empowerment of artisans
x) New Employment/Enhancement in the earnings of the
artisan
xi) Shortfalls/Achievements

B. Financial Review:

i) Financial status of the Implementing Agency
ii) Funds received and utilized
iii) Proper maintenance of accounts
iv) Working Capital requirement and support from Banks
and other financial institutions

131

v) Stock maintenance
vi) Auditing and UC position
vii) Shortfalls/achievements
viii) Compliances of observations of Director, Finance
ix) Any other issues in respect of finances

6. Action taken on:

Visit observation of Chairperson/CEO/Officials of Ministry of MSME,
Members/Dy.CEO and other officers from Central /State/Divisional
Offices.

ANNEXURE II

Zonal level monitoring meetings of the cluster

Duration of the
meeting:
1 day
Period: Quarterly
Participants: State/Divisional Director, IA, CDE, TA,
Director or representative from SFURTI
Directorate
Fund provision: Rs.1,500/- for each cluster to meet out
the stationery, printing, refreshment and
other miscellaneous expenditure.

Review to be covered:

1. Direct listing pending, if any
2. Ensuring CDEs service available
3. NAFO Working System including No. of visit of State
Director to the Cluster
4. Optimum usage of infrastructure made available at
cluster. artisans
5. Review on benefits
6. Working Capital availability.
7. Marketing linkages including Dept. Sales outlets.
8. Involvement of
9. Financial review
10. Implementation of Cluster as per time Schedule.
11. Reporting System and its out come.

132

Annexure: U
SFURTI/Policy/Artsn-Empr/2009-10 Date: 11
th
December 2009
CIRCULAR
Sub : Empowerment of Artisans in SFURTI programme
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is
implemented by KVIC in 79 clusters (29 Khadi and 50 Village Industries) aiming all-
round development of beneficiary artisans associated with the clusters, In this
mission, cluster activities are to be implemented more effectively to empower the
rural artisans. The Cluster Development Program is designed to make the traditional
industries more competitive, market driven, productive, profitable, sustainable
employment to traditional industry artisans and rural entrepreneurs and there by to
improve the earning capacity of artisans.
1. Enrollment of Artisans: As per the OM no G 20014/2004-KVI dated 03-10-2005
of the Ministry of ARI, Govt of India, approval for cluster under SFURTI has concurred
on minimum coverage of 500 artisans in non NE States and 250 in NE states. Being
the stake holder, each artisan of the cluster shall be assigned a distinct Artisan's
Enrolment Number (AEN), which will help to maintain transparent and web enabled
monitoring of records for the artisans receiving benefits under the scheme in future.
The day-to-day out put and earning should be recorded in a pass book (as is
maintained in case of Khadi artisans) for all the K&VI SFURTI clusters. The Cluster
Development Executive (CDE) and IA shall collect all required data, collate, up-load
and maintain as per the proforma placed at Annexure-I.
2. Involving Artisans in Cluster Development: In line with the directives of the
Scheme Steering Committee(SSC), one percent of Artisan representation among the
Cluster Development Coordination Group (CDCG) and in the Cluster Level Purchase
Committee be nominated and maintained (as per guidelines issued vide circular No.
SFURTI/ Policy/ 6502/ 2007-08, dated 07-01-2008) and to involve them in the
development process of the cluster.
3. Social Security to Artisans: Artisans being stake holders and prime beneficiaries
of the cluster activities under SFURTI, their confidence has to be enhanced and trust
building activities are to be taken up. All the artisans enrolled in the cluster shall be
extended with the insurance benefits and their children with educational scholarships
under Janashree Bima Yojana, as per the existing guidelines/norms in the KVI sector.
4. Providing Work-Shed to Artisans : "Workshed scheme for Khadi Artisans"
notified by KVIC vide Circular no DKC/workshed scheme/2008-09 dated 06-06-2008
shall be taken up in covering the artisans of SFURTI Scheme. In case of VI clusters,
as per the DSR provisions, the IA has to ensure such assistance under relevant
schemes implemented by Central/State Govt agencies, Nationalised Banks or National
Housing Bank (eg. workshed cum housing of artisans).
5. Working Capital to Artisans and Credit Facilities: Under SFURTI scheme,
necessary pooling of Working Capital has been met from the banking channel. To
facilitate sufficient flow of credit, the Cluster IA have to ensure formation of Self Help
Groups (SHGs) of the artisans in the cluster, helping them to raise their own capital
and linking them with banks associated with the cluster for mobilization of required
working capital for the group. The CDE with the support of CDCG Chairman and their
members should take the lead for facilitation. Further IA may moot proposals with
Local self Govt institutions (panchayat raj) for providing working capital support.
(eg: Pavalavaddi scheme implemented by govt of Andhra Pradesh State Govt of
Rajastan providing fund for cotton purchase, etc). IAs may approach the concerned
Nodal Bank for Working Capital needs (circulated vide SFURTI/WC/BC/3075/2008-09
dated 14-10-2008).
Many banks have started providing the Artisan Credit Card to meet their
Working Capital requirement. The IAs of the clusters have to arrange enrollment of all

133

artisans under Artisan Credit Card Scheme to the bank associated with the Clusters
for ease fund flow.
6. Replacement of tools and equipments: Artisans of village industries such as
wood carving, bamboo crafts, beekeeping, fibre clusters etc, are often using
traditional tools and equipments, which are not well equipped to deliver the desired
out put and convenience. The tool kits of artisans are to be designed considering their
local conditions, actual requirements and needs. These are to be improved for better
productivity, quality and increased earnings. The assistance of MGIRI, Wardha or
similar Technical Institutes may be associated with the task.
Provision for replacement of tools and equipments with a subsidy of 75% is
available for Khadi Clusters. IAs have to transfer the ownership rights of Khadi
implements received through SFURTI scheme to the artisans ensuring that he/she
should not misuse the implement and cost of implements should be charged neither
to the artisan nor in the cost of Khadi Production. The ownership right to artisans
should be rendered through an arrangement.
7. Convergence with Existing Schemes: SFURTI takes a holistic approach on
cluster development; the IA should be open in dovetailing with on going
schemes/program. (Example: Housing and pension schemes of State Govts,
Convergence with Local Self Govt schemes, MP/MLA assistance etc to be arranged for
better infrastructure, healthy and hygienic working environment (lavatories) etc.
(Introduction of solar lighting systems in remote rural areas through linkage of special
projects of Ministry of New and Renewable Energy etc).
The above mechanisms are placed for strict compliance of the Implementing
Agencies and Cluster Development Executives under close supervision and monitoring
of concerned Nodal Officer, Technical Agency and State/ Divisional Director KVIC. The
progress achieved in each aspect by every cluster will be monitored regularly


To
1. Zonal Dy. CEOs
2. State / Divisional Directors
3. All Industry Programme Directors
4. Implementing Agency
5. Technical Agency

Copy to:
3. CEO Cell
4. Financial Advisor
5. Jt Secretary, Ministry of MSME, Govt of India, New Delhi
7. Hindi Officer (Hindi Cell) with a request to issue Hindi version of this
circular
8. Director (IT) for uploading to KVIC Web Site
9. Master File

134

Annexure I

ARTISAN ENROLLMENT NO:

SFURTI ARTISAN PASS BOOK
YEAR : 2009-10

NAME OF CLUSTER:..
NAME..
ADDRESS.
.
.
DISTRICT.STATE .

(Front Page)
Page 1 & 2 (front inside cover left & right)

ARTISAN ENROLLMENT NUMBER:

STATE IA ARTISAN NUMBER
KVIC SFURTI Khadi/VI

1 SFURTI Cluster name
2 Name of Artisan:
3 Address with Pincod
4 Phone no
5 Voter ID Card/ Ration Card No
6 Name of Father/Spouse:
7 Category belongs to SC/ ST/OBC/Minority
8 Sex & Marital Status : Male/Female
9 Married/Unmarried
10 Whether belongs to BPL category Yes/ No
11 Artisan Category: Master Craftsman/Artisan
12 Crafts Practiced
13 Experience in years
14 Whether possess Health Card: Yes/No, if yeas no: & issued by:
15 Whether Possess Artisan Credit card: Yes/No, if yeas no: & issued by:
16 Whether Possess any artisan insurance card:
17 Incase of Khadi Artisan, whether a member
of Jamashree Bima Yojana
Yes/No, if yeas no:
18 Whether enrolled in any Artisan Welfare
Trust/Yojana/Nidhi of State/Central Govt
Yes/No, if yes details:
19 Signature of Artisan

Prepared by Verified by

Signature of CDE Signature of
IA
PHOTO

135

__________________________________________________________________
Page 3 Pass Book on Production

Date Issue of Raw Materials Qty in nos Amount Remarks

(inside Left page)
Page 4 Pass Book on Wages
Date Crafts/Articles Produced Qty in nos Amount Wages
Paid
Remarks

(inside Right page)
(Pages 3 & 4 will continue in the subsequent pages of the pass book)

Yearwise Summery
Particulars Qurarter1
Apr to Jun
Qurarter2
Jul to Sept
Qurarter3
Oct-to Dec
Qurarter4
Jan to Mar
No of Units Produced (Qty)
Wages earned Rs
Sale proceeds Rs
Source of Working Capital
a. from Own Source

b. from Bank Loan
c. from IA
d. From Others
Training Attended on
a. Skill Developing

b. Design Developing
c. Quality Control
d. Raw Material processing
e. Pricing/Record Keeping
Exposure visits made
Market Promotion
a. Exhibitions attended

b. Income from Exhibit:
Health Camps Attended
Other Information

Last Pages. (Back Cover - inside pages)

Signature of Artisan:

Signature of CDE Signature of IA
Counter sign

Cluster Nodal Officer State/Div Director

136

Annexure: V
Khadi and Village Industries Commission
3, Irla Road, Vile Parle (West), Mumbai. 56
____________________________________________________________________
No.DSFURTI/ISO-Certificaion/2009-10 Dt. 18. 01.2010

CIRCULAR
ISO-Certification for Clusters
In continuation of SFURTI O.M. No. G-20014/8/2004-KVI dt. 3.10.2005 issued
by Government of India, Ministry of MSME, Udyog Bhawan, New Delhi, it has been
decided that as a part of cluster scheme of SFURTI implementation by KVIC through
its implementing Agency that all the clusters should invariably get ISO certification.
2. The budget provision is already made available under the cost of CFC to ensure
quality standards as per O.M. dt. 3.10.2005.

Component Funding Pattern
Common Facility Center (CFC) for Product
testing laboratory to enforce quality standards;
(a) Grant - 75%
(b) Beneficiarys contribution
(Institutions) 25%

3. The ISO certification may be obtained through the BIS Office of their concern
agency as per existing Circular of Directorate of S&T. The proposal may be
ratified by the CDCG and get regularized as deem fit on case to case basis.
The funds will be utilized under CFC head on need base at the cluster level with
the approval of CDCG.
4. In case funds are already exhausted, the same may be met out of S&T funds
available in Central Office, for which necessary proposal may be sent directly
to Director (S&T) under intimation to this Directorate.
5. All the State/Divisional Directors may ensure the same.

This is issued with the approval of Chief Executive Officer.

DIRECTOR (SFURTI)
To
1. All the Dy.CEOs
2. All the State/ Divisional Directors
3. All the I.As
4. All the Technical Agencies
5. Director S&T
6. All the programme Directors

137

Annexure: W
SFURTI/Policy/Monitoring/2009-10 Date: 8
th
February 2010
C I R C U L A R
Sub: Utilisation of Professional Designers for
Cluster Development activities

(SFURTI) is designed to make the traditional industries more competitive,
market driven, productive, profitable, sustainable, employment oriented to
safeguard traditional industry artisans and rural entrepreneurs and thereby to
improve the earning capacity of artisans. The programme is implemented as
per the OM on SFURTI no. G20014/2004-KVI dated 03-10-2005.
2. It has been noticed during the review/progress of cluster implementation
in Andhra Pradesh that the Implementing Agencies (IAs) are engaging single
designer for multiple activities, even across various clusters without taking
into account their field of expertise and availability etc,.
3. This will not serve to the purpose for which it has been intended and
limited qualitative results will be produced out of the same. More competence
can bring through engaging more professionals of relevant area/field to the
demanding situations.
4. The State/Divisional Directors are directed to monitor the same and to
utilize services of sufficient number of experts in relevant areas so as to use
their expertise and design inputs by the artisans to improve their skill,
productivity and better marketing.
5. The Zonal Dy. C.E.Os should monitor the optimum utilization of experts
and also review regularly for better performance on cluster deliverables.

(J.S. Mishra)
To
1. Zonal Dy. CEOs
2. State / Divisional Directors
4. Implementing Agencies (IAs)
6. Cluster Development Executives (CDEs) through IA.
Copy to
9. OSD to CEO
10.Financial Advisors Cell
11.Director (Publicity) for publication in the ensuing Jagruti
12.Hindi Officer (Hindi Cell) with a request to issue Hindi version of this
circular
13.Director (IT) for uploading to KVIC Web Site
14.Master File

138

Annexure:X
(Under Ministry of Micro, Small & Medium Enterprises, Govt. of India)
'Gramodaya', 3, Irla Road, Vile Parle (West),
Mumbai - 400 056.
--------------------------------------------------------------------------------------
No. SFURTI/Policy/Monitoring/2010-11 Date: 26.04.2010
C I R C U L A R
Sub: Effective utilization of funds provided
for implementation of SFURTI programme.
The "Scheme of Fund for Regeneration of Traditional Industries
(SFURTI)" is designed to make the traditional industries more competitive,
market driven, productive, profitable, sustainable and employment oriented to
safeguard traditional industry artisans and rural entrepreneurs and thereby to
improve the earning capacity of artisans.
2. The guidelines specified in the O.M. No. G20014/2004-KVI dated
03.10.2005, issued by Ministry of ARI, Govt. of India was already circulated to
all for strict compliance.
3. It has come to the notice during the course of review/monitoring, the
implementing agencies have not adhered the guidelines and thereby certain
deviations/discrepancies observed which are not in terms of the specific
guidelines on utilization of funds.
4. It is pertinent to mention there that, funds released under SFURTI
should be utilised strictly as per the approved DSR and Annual Action Plan.
Neither diversion nor deviation from the same is permitted as ratification of
such discrepancies will not be permitted by authorities.
5. It is once again emphasized that, as per the agreement entered
between IA and NA all financial transactions under SFURTI should be operated
only through 'ESCROW' Account and no other mode of account is permitted to
operate for SFURTI funds.

6. Being the signatory of the ESCRO Account, State/Divisional Director
should ensure that, funds under SFURTI are released and utilised specifically
for the purpose for which it was sanctioned and released.
7. O.O. No. 2023 dated 16.8.2008 and Circular dated 4.11.2008,
categorically provides submission of Monthly Performance Report in physical
and financial terms by field offices.
8. Any diversion of SFURTI funds and incurring expenditure by deviating
from the approved Action Plan may entail action as deemed fit for dereliction
of duties and the same may be noted for compliance.
9. State/Divisional Directors should ensure proper and effective utilization
of funds provided under SFURTI and Zonal Dy. C.E.O. are requested to
monitor the same in the review meeting.

(J.S. Mishra)

139

To,
All State/Divisional Directors
All Zonal Dy. CEO's
Copy to :
3. OSD to CEO Cell
4. A.O. to Financial Advisor's Cell
7. Hindi Officer (Hindi Cell) with a request to issue Hindi
version of this circular.
8. Director (IT) for uploading to KVIC Web Site.
9. Master File.

140

Annexure:Y
Ph./Fax: 022-26713696 E-Mail: sfurti@kvic.gov.in

No. KVIC/SFURTI/EM&HD/2010-11/ Date: 15-04-2010

CIRCULAR

Subject: - Guidelines for the Safety and Security of funds (Grants)
released to Implementing Agencies under SFURTI Programme
(SFURTI) programme has been launched by the Ministry of Micro, Small
and Medium Enterprises (MS & ME), Government of India with a view to
make the traditional industries more productive, competitive and to
facilitate their sustainable development.
2. The Ministry is releasing funds to Nodal Agency(NA), depending on
actual physical progress and on producing utilization certificate and in turn
NA is effecting the disbursement of funds to the identified Implementing
Agencies (IAs). The NA is responsible for effective implementation and
monitoring of the scheme under the overall supervision of the SSC. Hence
the safety and security of funds released to various IAs such as KVI
institutions, NGOs and State Boards etc are to be maintained properly.
3. As per the prevailing practice, funds released to the institutions are
secured either by Equitable Mortgage (EM) of immovable properties or
Hypothecation Deed of immovable goods so as to ensure that in the event
of institution defaulting, the funds are protected by way of security
available. The circular issued vide FA cell/ Security of funds/08-09/ dated
11.02.2009 reaffirms the same.
4. Since KVIC is releasing a substantial amount as grant for the
creation of infrastructure to the institutions implementing SFURTI
programme, in order to ensure the continuity of the programme and to
achieve the desired result, it is highly essential that the infrastructure
created out of SFURTI funds are mortgaged with the Commission.
5. Various representations received from field offices of NA and IAs (VI
clusters) regarding their inability in making EM/HD to the extent of total
funds (including soft components such as capacity building, market
promotion interventions, service charges etc) have been considered and
the Commission has decided/ resolved to make it applicable suitably to the
existing and new Implementing Agencies of SFURTI, that

141

i. All the institutions implementing SFURTI Khadi and/or V.I.
Programme and received funds under SFURTI should be asked to
create Equitable Mortgage (E.M.) of the assets created out of the
grants sanctioned by the Commission to secure the loan already
sanctioned to it.
ii. For the new IAs associating for Village Industry clusters, the
Equitable Mortgage/Hypothecation Deed need not be insisted at the
preliminary stage of implementation. However, they must create
Equitable Mortgage and execute Hypothecation Deeds in respect of
movable and immovable assets created under SFURTI grant. An
undertaking from the Implementing Agencies in this respect must be
obtained in the initial stage before sanctioning the grants.
iii. The implementing agencies must also furnish proper UC after
utilizing the funds for the purpose for which the same was
sanctioned.
iv. The existing security norms are to be followed by implementing
agencies that belong to State Government / Khadi Boards, since
their assets belong to the State Government and funds are utilized
subject to state/AG audit.
v. All movable assets created out of SFURTI funds are to be
hypothecated to KVIC.
This is issued for strict compliance by all concerned.

Sd.
(J. S. Mishra)
To
1. Zonal Dy. CEOs
2. State Office / Divisional Office Directors
3. All Industry / Programme Directors,
Copy for information to:
1. All Members of KVIC
3. OSD to CEO
4. A O to F A Cell
5. Director (Publicity) for printing in the ensuing Jagruti
6. Hindi Officer with a request to issue Hindi Version of the Circular
7. Director(IT) for uploading to KVIC web site
8. Master File

Sfurti Book - Final

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