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PM Vishwakarma Scheme

Government of India has introduced the ‘PM Vishwakarma Scheme’.

Who are Vishwakarmas?

The traditional artisans and craftspeople who work with their hands and tools are referred to as ‘Vishwakarmas’. They are engaged in occupations like Blacksmiths, Goldsmiths, Potters, Carpenters, Sculptors, etc.

What are the objectives of PM Vishwakarma Scheme?

PM Vishwakarma Scheme aims –

  • To improve the quality as well as the reach of products and services of Vishwakarmas and to ensure that the Vishwakarmas are integrated into the domestic and global value chains. 
  • To offer holistic end-to-end support to the Vishwakarmas to enable them to move up the value chain in their respective trades.
  • To provide the Vishwakarmas an easy access to collateral free credit and reduce the cost of credit by providing interest subvention.

What will be the term of the Scheme?

PM Vishwakarma Scheme will be initially implemented for 5 years up to 2027-28.

How will the Scheme be implemented?

PM Vishwakarma Scheme will be implemented as a Central Sector Scheme, fully funded by the Government of India, with an initial outlay of ₹13,000 crore.

The Scheme will be conjointly implemented by the following ministries of the Government of India –

  • Ministry of Micro, Small and Medium Enterprises (MoMSME)
  • Ministry of Skill Development and Entrepreneurship (MSDE)
  • Department of Financial Services (DFS), Ministry of Finance (MoF)

MoMSME will be the Nodal Ministry for the Scheme and Additional Secretary & Development Commissioner (MSME) in Ministry of MSME will be the focal point for all aspects of implementation and coordination.

A 3-tier implementation framework at the National, State and District levels, i.e. the National Steering Committee, State Monitoring Committee and District Implementation Committee, respectively, has been provided for implementation of PM Vishwakarma Scheme.

What are the benefits under the Scheme?

PM Vishwakarma is a holistic Scheme that envisages to provide end-to-end support to the artisans and craftspeople through the following components –

Recognition – PM Vishwakarma Certificate and ID Card

  • The artisans and craftspeople will receive PM Vishwakarma Certificate and PM Vishwakarma ID Card in digital as well as physical form. 
  • The certificate shall enable the applicant’s recognition as a Vishwakarma and shall make him / her eligible to avail all the benefits under the Scheme. 

Skill Upgradation

  • The skill upgradation will embed modern tools, design elements and integration with the sector value chain as its key components of domain skilling. 
  • Besides domain skills, skill upgradation will also cover aspects that will enable the Vishwakarma to access other features of the scheme, including usage of toolkits, marketing support, enterprise creation and expansion through credit and benefits of digital transactions. 
  • The skill upgradation consists of 3 components – 
    • Skill Assessment
    • Basic Training – about 40 hours, over 5-7 days
    • Advanced Training – 15 days / 120 hours or more
  • Each beneficiary will be eligible to receive a training stipend of ₹500/- per day while undergoing the training programmes.

Toolkit Incentive

  • A toolkit incentive of upto ₹15,000/- will be provided to the beneficiary after Skill Assessment at the start of Basic Training. 
  • The incentive will be disbursed to the beneficiaries through e-RUPI / e-vouchers which can be utilized at designated centres to procure improved toolkits.

Credit Support

  • Financial support will be provided to the targeted beneficiaries in the form of collateral free ‘Enterprise Development Loans’.
  • The total amount of loan assistance would be ₹3,00,000/- wherein, the beneficiaries can avail the first loan tranche upto ₹1,00,000/- and second loan tranche upto ₹2,00,000/-.
    • The beneficiaries will be eligible for first loan tranche on completion of Basic Training.
    • The second loan tranche will be available to beneficiaries who have availed the first tranche loan and maintained standard loan account and have adopted digital transactions in their business or have taken Advanced Training.
    • The beneficiary will be eligible for the second tranche loan when the first tranche loan is fully repaid. 
    • The second loan will not be granted before 6 months of the disbursement of first tranche loan.
  • The loan shall be repaid in monthly instalments.
  • The term of loan repayment is 18 months for first loan tranche and 30 months for second loan tranche.
  • Concessional rate of interest chargeable to beneficiaries for loan will be fixed rate of 5%. 
  • The interest subvention by the Government of India will be upto 8% and provided upfront to the banks. 
  • A beneficiary will be eligible to avail concessional interest for both first and second tranches of the loan.
  • No prepayment penalty will be charged from beneficiaries after 6 months of loan disbursement.
  • A Graded Guarantee Cover for all loans sanctioned by the Lending Institutions will be covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which will be operated on a portfolio basis. Maximum guarantee coverage will be 50% of the year portfolio for the first tranche of loan and 15% for the second tranche of loan.
  • Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Finance Companies and Micro Finance Institutions, are eligible to lend under the Scheme.

Incentive for Digital Transactions

  • An amount of ₹1 per eligible digital transaction (upto maximum 100 eligible transactions monthly) will be credited to the beneficiary’s bank account.
  • The eligible transaction means a digital pay-out or receipt in the bank account of the beneficiary.

Marketing Support

  • The National Committee for Marketing (NCM) will provide marketing and branding support for the products of the beneficiaries. 
  • Marketing support in the form of quality certification, branding, advertising, publicity and other marketing activities would be extended to the beneficiaries to improve their linkage to value chain of MSMEs and established companies.

Who are the eligible Vishwakarmas under the Scheme?

  • An artisan or craftsperson working with hands and tools and engaged in one of the family-based traditional trades, in the unorganized or informal sector, on self-employment basis, shall be eligible for registration under PM Vishwakarma Scheme.
  • The minimum age of the beneficiary should be 18 years on the date of registration.
  • The beneficiary should not have availed loans under similar credit-based schemes of Central Government or State Government for self-employment / business development, e.g. PMEGP, PM SVANidhi, MUDRA, in the past 5 years. However, the beneficiaries of MUDRA and SVANidhi who have fully repaid their loan, will be eligible under PM Vishwakarma. This period of 5 years will be calculated from the date of sanction of the loan.
  • The registration and benefits under the Scheme shall be restricted to one member of the family (consisting of husband, wife and unmarried children).
  • A person in government service and his / her family members shall not be eligible under the Scheme.

Which trades are covered under the Scheme?

The following traditional trades will be initially covered under PM Vishwakarma Scheme for providing benefits to the artisans and craftspeople engaged in these trades –

  • Carpenter (Suthar / Badhai)
  • Boat Maker
  • Armourer
  • Blacksmith (Lohar)
  • Hammer and Tool Kit Maker
  • Locksmith
  • Sculptor (Moortikar, Stone Carver), Stone Breaker
  • Goldsmith (Sonar)
  • Potter (Kumhaar)
  • Cobbler (Charmakar) / Shoesmith / Footwear Artisan
  • Masons (Rajmistri)
  • Basket / Mat / Broom Maker / Coir Weaver
  • Doll & Toy Maker (Traditional)
  • Barber (Naai)
  • Garland Maker (Malakaar)
  • Washerman (Dhobi)
  • Tailor (Darzi)
  • Fishing Net Maker

What will be the helpline number for the Scheme?

A helpline number shall be setup at the central level to support the beneficiaries in availing various incentives under the Scheme. [Toll Free Number : 18002677777]


References

Reserve Bank of India. (2023, September 13). 'PM Vishwakarma Scheme'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12536&Mode=0


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