The program also has a fund of ₹250 crore for tasks like ensuring product quality, creating brands, running advertisements, spreading the word, and other promotional efforts.
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In New Delhi, the Indian government is all set to introduce the PM Vishwakarma program on the 17th of September. This scheme aims to provide assistance to artisans and laborers.
Prime Minister Modi Launches Program
Prime Minister Narendra Modi will inaugurate the program at the India International Convention & Expo Centre in Dwarka, which is located in the national capital.
₹15,000 Incentives and Loans without Collateral
Under this scheme, those who benefit from it will receive ₹15,000 each as incentives for toolkits. These incentives will be provided through e-vouchers or eRUPI, and they will also be eligible for loans to develop their businesses without having to provide collateral, and these loans will come with lower interest rates. Additionally, artisans will receive an extra incentive of ₹1 for each transaction, with a maximum cap of 100 transactions per month. This information was presented in a report prepared by the Ministry of Micro, Small, and Medium Enterprises (MSME).
Skill Verification and Training Process
Artisans who wish to benefit from this scheme will need to undergo a skill verification process, which will be followed by a five-day training session. After this initial training, they will receive advanced training for 15 days or more. During this training period, they will receive a stipend of ₹500 per day, as indicated in the presentation.
Allocating ₹250 Crore for Promotion
The program also allocates ₹250 crore for tasks such as ensuring product quality, establishing brands, conducting advertising campaigns, promoting awareness, and engaging in various marketing activities.
Scheme Overview and Approval
The scheme received approval from the Cabinet Committee on Economic Affairs (CCEA) on the 16th of August, with a budget of ₹13,000 crore allocated for a five-year period, spanning from FY24 to FY28.
Recognition and ID Card
According to the statement, the scheme will offer artisans and craftspeople the following benefits:
- Recognition through the PM Vishwakarma certificate and ID card.
- Credit support of up to ₹1 lakh in the first installment and ₹2 lakh in the second installment, both at a subsidized interest rate of 5%.
- The reduced interest rate will have an upper limit of 8% as per interest subvention, and a credit oversight committee may adjust this subvention cap to align with the current interest rates, as explained in the presentation.
- The credit guarantee fee will be covered by the central government.
Eligibility Criteria
The scheme aims to assist artisans and craftspeople from both rural and urban areas throughout the country. Initially, it will focus on 18 traditional trades as the primary beneficiary sectors. These trades include carpenters, boat makers, blacksmiths, hammers and toolkit makers, locksmiths, goldsmiths, potters, sculptors, stone breakers, cobblers, shoemakers, masons, coir weavers, traditional toy makers, garland makers, washermen, and tailors.
To be eligible for the scheme, applicants must meet the following criteria:
- Minimum age of 18 years.
- They should not have previously taken loans under similar credit-based self-employment schemes like the Prime Minister Employment Generation Programme (PMEGP), Prime Minister Street Vendor’s AtmaNirbhar Nidhi, Mudra scheme, or any other central or state government scheme within the past five years.
- Applicants will be required to provide a self-declaration, and the banks will conduct the necessary due diligence.
Implementation Structure
According to the presentation, the implementation of the scheme will involve the establishment of a national steering committee, state monitoring committees, and district implementation committees. At the lowest level of the implementing organizational structure, there will be field-level agencies, including banks and skilling centers, among others.
Government’s Initiative
The Union budget for FY24 marked the first mention of the government’s intention to introduce a scheme aimed at supporting traditional artisans and craftsmen.
In his Independence Day speech last month, Prime Minister Modi announced that the government would launch the scheme within one month.