Explained: Vishwakarma scheme, benefits, objectives and eligibility

"On this Vishwakarma Jayanti, we will give about Rs 13,000-15,000 crore to the people who live with traditional skills, who work with tools and with their own hands, mostly from the OBC community," said Narendra Modi on the Vishwakarma Scheme.

Prime Minister Narendra Modi launched the PM Vishwakarma scheme on September 17  in New Delhi on the occasion of Vishwakarma Jayanti, for giving government support to workers engaged in traditional crafts and skills.

The scheme is also being seen as a means for the government to reach out to the economically marginalised and socially backward communities – particularly the Other Backward Classes (OBC) groups – before the 2024 Lok Sabha polls. Here’s who the scheme targets and what its provisions say.

What is the Vishwakarma scheme?

It is a new scheme with an outlay of Rs 13,000 crore and is fully funded by the Central government. "On this Vishwakarma Jayanti, we will give about Rs 13,000-15,000 crore to the people who live with traditional skills, who work with tools and with their own hands, mostly from the OBC community. Be it our carpenters, our goldsmiths, our masons, our laundry workers, our barber brothers, and sisters,” Modi said earlier this year on Independence Day.

Who is eligible for the Vishwakarma scheme?

A video from the government that was played at the launch event talked about how the professionals engaged in traditional crafts and skills for centuries, often taught by elders in the family, have faced certain problems. These include a lack of professional training for their work, of modern tools, the issue of distance from the markets relevant to them and the availability of little capital for investment.

Families associated with 18 such different sectors will be helped in all possible ways, the PM said. These include carpenters, boat makers, armourers, blacksmiths, hammer and tool kit makers, locksmiths, goldsmiths, potters, sculptor, stone breakers, cobblers, masons, basket weavers, toy makers, barbers, garland makers, washermen, tailors, fishing net makers.

What benefits can be availed of through the Vishwakarma Scheme?
The scheme is to help enhance the skills of workers employed in these fields and help them avail loans easily to aid their earnings.

Under the scheme, the Vishwakarma workers will be registered for free through Common Services Centres using the biometric-based PM Vishwakarma portal.

They will then be provided recognition through the PM Vishwakarma certificate and ID card, given skill upgradation involving basic and advanced training, a toolkit incentive of ₹15,000, collateral-free credit support up to ₹1 lakh (first tranche) and ₹2 lakh (second tranche) at a concessional interest rate of 5%, incentive for digital transactions and marketing support.

A toolkit booklet has also been released in 12 Indian languages, with accompanying video elements, to aid the knowledge of workers on new technologies in their field.

Union Railways Minister Ashwini Vaishnaw said last month that a stipend of Rs 500 will be provided for skill training and Rs 1,500 to purchase modern tools. Five lakh families will be covered in the first year and 30 lakh families over five years, he said. “The scheme also aims to ensure that Vishwakarmas are integrated with the domestic and global value chains,” Vaishnaw said.

How to apply for collateral-free loan under Rs 13,000-crore scheme for artisans?

It involves a three-step verification and approval, artisans and craftspeople will be registered under this scheme as Vishwakarmas and get a digital ID, PM Vishwakarma digital certificate and PM Vishwakarma ID card.

The certificate will allow beneficiaries to avail the benefits under the scheme.

The steps are as follows:

Step 1: Verification at Gram Panchayat or ULB level

The first step of screening for the artisans and craftspeople registered under PM Vishwakarma will be through the head of Gram Panchayat/ Chairman of Village Council or Executive Head/ Administrator of the Urban Local Body. The Head of the Panchayat will verify the details and ascertain that the beneficiary has been traditionally engaged in the trade on a self-employment basis. The verification will also include screening of family details mentioned by the beneficiary to ensure that only one eligible person is covered by a family.

Stage 2: Vetting and recommendation by the District Implementation Committee (DIC)

The registration details verified by the head of Gram Panchayat or the executive head will be forwarded online to the DIC for the second step of verification to ensure proper vetting and recommendation of the applications made by the beneficiaries.

Stage 3: Approval by the Screening Committee

The final approval for registration of beneficiaries will be accorded by the Screening Committee after due diligence and consideration of recommendations made by the DIC. The Screening Committee will be chaired by an officer of the field formation of the Office of DC-MSME and will have members including the state lead bank manager and representatives of MSDE as members in each state/union territory to oversee the registration process.