PM Narendra Modi Launches PM Vishwakarma Scheme Empowering Traditional Artisans.
₹13,000 Crore Initiative Aims to Provide Financial Support and Skill Enhancement for 30 Lakh Families.
Prime Minister Narendra Modi inaugurated the ‘PM Vishwakarma’ scheme on Vishwakarma Jayanti, a groundbreaking initiative set to bolster traditional craftsmen and artisans. The scheme offers collateral-free loans at a nominal interest rate, revolutionizing financial access for the artisan community.
With a substantial allocation of ₹13,000 crore over a five-year period, the program is poised to benefit approximately 30 lakh families, encompassing various traditional trades such as weavers, goldsmiths, blacksmiths, laundry workers, and barbers.
The primary objective of the scheme is to enhance the accessibility and quality of products and services offered by traditional artisans and craftsmen. By providing them with financial assistance, the government aims to empower this vital sector of the economy, ensuring they are seamlessly integrated into domestic and global value chains.
One of the key features of the Vishwakarma scheme is the provision of collateral-free enterprise development loans. The first tranche of ₹1 lakh, repayable over 18 months, and the second tranche of ₹2 lakh, repayable over 30 months, will be made available to the beneficiaries. This approach eliminates the need for artisans to put up collateral, reducing a significant barrier to accessing financial support.
Moreover, the scheme offers a concessional interest rate of 5% to the beneficiaries, with an interest subvention cap of 8% covered by the Ministry of Micro, Small, and Medium Enterprises. This ensures that the financial burden on the artisans is minimized, allowing them to focus on honing their crafts.
To further incentivize participation, the scheme provides a range of additional benefits. Beneficiaries will receive recognition as a Vishwakarma through a certificate and ID card, along with skill verification followed by 5-7 days (40 hours) of basic training. Those interested can also enroll for 15 days (120 hours) of advanced training, with a stipend of ₹500 per day provided.
In addition to these incentives, a ₹15,000 grant will be offered as a toolkit incentive, equipping artisans with the necessary resources to excel in their respective crafts. An additional incentive of ₹1 per transaction, up to 100 transactions monthly, will be given for digital transactions, promoting the shift towards a more technologically integrated market.
The scheme also establishes a National Committee for Marketing (NCM), which will provide services such as Quality Certification, Branding & Promotion, E-commerce linkage, Trade Fairs advertising, publicity, and other marketing activities. This comprehensive support system aims to elevate the visibility and marketability of products created by traditional artisans.
To be eligible for registration under the PM Vishwakarma scheme, an artisan or craftsperson must be engaged in one of the 18 family-based traditional trades outlined in the scheme, working in the unorganized sector on a self-employment basis. Additionally, the minimum age of the beneficiary should be 18 years on the date of registration.
During the launch event, a government video highlighted the challenges faced by professionals engaged in traditional crafts and skills. These issues included a lack of professional training, access to modern tools, distance from relevant markets, and limited capital for investment. The Vishwakarma scheme addresses these concerns, offering comprehensive support to families associated with the 18 designated trades.
In its inaugural year, the scheme aims to cover five lakh families, with a target of reaching 30 lakh families over the next five years, spanning from FY24 to FY28. The prime focus remains on improving the quality and reach of products and services of artisans, ensuring their seamless integration into both domestic and global value chains.
