PM Modi launches ₹13,000-crore 'PM Vishwakarma' scheme for traditional workers

With a financial outlay of ₹13,000 crore for a period of five years, the scheme will benefit about 30 lakh families of traditional artisans and craftsmen

Prime Minister Narendra Modi on September 17 launched the 'PM Vishwakarma' scheme on the occasion of 'Vishwakarma Jayanti', under which traditional craftsmen and artisans will be provided loan assistance at a minimal interest rate without the need for collateral.

With a financial outlay of ₹13,000 crore for a period of five years, the scheme will benefit about 30 lakh families of traditional artisans and craftsmen, including weavers, goldsmiths, blacksmiths, laundry workers, and barbers.

The goal of the scheme is to enhance the accessibility and quality of products and services offered by traditional artisans and craftsmen.

The scheme offers collateral-free enterprise development loans of ₹1 lakh (first tranche for 18 months repayment) and ₹2 lakh (second tranche for 30 months repayment).

A concessional rate of interest of 5% will be charged from the beneficiary with interest subvention cap of 8% to be paid by the Ministry of Micro Small and Medium Enterprises. The credit guarantee fees will be borne by the central government.

The scheme also entails benefits such as recognition as a Vishwakarma through a certificate and ID card and skill verification followed by 5-7 days (40 hours) of basic training. Interested candidates can also enrol for 15 days (120 hours) of advanced training and a stipend of ₹500 per day will be provided.

Besides, a ₹15,000 grant will be provided as a toolkit incentive and an incentive for digital transaction of ₹1 per transaction for up to 100 transactions monthly.