VISHWAKARMA SCHEME – GOVERNMENT SCHEME

News: PM inaugurates Vishwakarma Scheme, says government is committed to the uplift of the marginalised

 

What's in the news?

       Prime Minister Narendra Modi said that his government was committed to the uplift of artisans and craftspeople, and that the ₹13,000 crore Pradhan Mantri Vishwakarma Yojana (PMVY), launched for them, would equip craftspeople with the technology to augment their skills for the modern market.

 

Key takeaways:

       Mr. Modi also inaugurated the first phase of the ₹5,400 crore state-of-the-art India International Convention and Expo Centre, named ‘Yashobhoomi’, at Dwarka in New Delhi.

 

Pradhan Mantri Vishwakarma Scheme:

       PM Vishwakarma, a Central Sector Scheme, was launched on 17th September, 2023 by the Prime Minister with an initial outlay of Rs 13,000 crore to provide end-to-end support to artisans and craftspeople who work with their hands and tools.

 

Implementation:

       The Scheme will be jointly implemented by the Ministry of Micro, Small and Medium Enterprises (MoMSME), the Ministry of Skill Development and Entrepreneurship (MSDE) and the Department of Financial Services (DFS), Ministry of Finance (MoF), Government of India.

       PM Vishwakarma will be initially implemented for five years up to 2027-28.

 

Coverage:

The Scheme covers artisans and craftspeople engaged in 18 trades, viz.(i) Carpenter (Suthar/Badhai); (ii) Boat Maker; (iii) Armourer; (iv) Blacksmith (Lohar); (v) Hammer and Tool Kit Maker; (vi) Locksmith; (vii) Goldsmith (Sonar); (viii) Potter (Kumhaar); (ix) Sculptor (Moortikar, stone carver), Stone breaker; (x) Cobbler (Charmkar)/ Shoesmith/Footwear artisan; (xi) Mason (Rajmistri); (xii) Basket/Mat/Broom Maker/Coir Weaver; (xiii) Doll & Toy Maker (Traditional); (xiv) Barber (Naai); (xv) Garland maker (Malakaar); (xvi) Washerman (Dhobi); (xvii) Tailor (Darzi); and (xviii) Fishing Net Maker.

 

Features:

The Scheme envisages provisioning of the following benefits to the artisans and craftspersons:

 

1. Recognition:

       Recognition of artisans and craftspeople through PM Vishwakarma certificate and ID card.

2. Skill Upgradation:

       Basic Training of 5-7 days and Advanced Training of 15 days or more, with a stipend of Rs. 500 per day;

3. Toolkit Incentive:

       A toolkit incentive of up to Rs. 15,000 in the form of e-vouchers at the beginning of Basic Skill Training.

4. Credit Support:

       Collateral free ‘Enterprise Development Loans’ of up to Rs.3 lakh in two tranches of Rs.1 lakh and Rs.2 lakh with tenures of 18 months and 30 months, respectively, at a concessional rate of interest fixed at 5%, with Government of India subvention to the extent of 8%.

       Beneficiaries who have completed Basic Training will be eligible to avail the first tranche of credit support of up to Rs.1 lakh. The second loan tranche will be available to beneficiaries who have availed the 1st tranche and maintained a standard loan account and have adopted digital transactions in their business or have undergone Advanced Training.

5. Incentive for Digital Transaction:

       An amount of Rs. 1 per digital transaction, up to maximum 100 transactions monthly will be credited to the beneficiary’s account for each digital pay-out or receipt.

6. Marketing Support:

       Marketing support will be provided to the artisans and craftspeople in the form of quality certification, branding, onboarding on e-commerce platforms such as GeM, advertising, publicity and other marketing activities to improve linkage to value chain.

 

Eligibility:

       An artisan or craftsperson working with hands and tools and engaged in one of the family-based traditional trades specified, in the unorganised or informal sector, on a self-employment basis, shall be eligible for registration under PM Vishwakarma.

       The minimum age of the beneficiary should be 18 years on the date of registration.

       A person in government service and his/her family members shall not be eligible under the Scheme.