PM Vishwakarma Scheme launched with Rs 13,000 crore financial outlay

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New Delhi: PM Modi launched the PM Vishwakarma scheme on Sunday on the occasion of ‘Vishwakarma Jayanti’. This scheme will provide loan assistance to traditional craftsmen and artisans at a minimal interest rate, sans the need for collateral.

This scheme has a financial outlay of Rs 13,000 crore, which will be distributed over the course of five years. Over 30 lakh families of traditional craftsmen and artisans will benefit greatly from the scheme, including goldsmiths, blacksmiths, weavers, laundry workers, and barbers.

This scheme aims to improve the accessibility and quality of products and services that are offered by traditional artisans and craftsmen. This will be achieved with the collateral-free enterprise development of Rs 1 lakh offered during the first part of repayment spanning 18 months and Rs 2 lakh during the second tranche of repayment spanning 30 months.

Beneficiaries will be charged a 5 per cent concession rate of interest, with an interest subvention cap of 8 per cent that will be paid by the Ministry of Micro Small and Medium Enterprises. The fee for the guarantee of credit will be borne by the central government.

This scheme will also provide benefits, for example, recognition as a Vishwakarma via certificate and ID card and skill verification. They will also be provided with 5-7 days (40 hours) of basic training. Candidates interested can also apply for advanced training, for a duration of 15 days (120 hours) and a stipend of Rs 500 per day.

As a part of a toolkit incentive, a grant for Rs 15,000 will be provided, along with an incentive of Rs 1 for every digital transaction for upto a 100 transactions per month.

The National Committee for Marketing (NMC) will provide services to those enrolled under the scheme, like Quality Certification, Trade Fairs advertising, Branding & Promotion, E-commerce linkage, publicity and other marketing activities.

For a person to be eligible for registration under the PM Vishwakarma scheme, an artisan or craftsman has to be at least 18 years of age on the date of registration, and will have to work with hands and tools, as well as engage in one of the 18 family-based traditional trades included in the scheme.