Vishwakarma Yojana Benefits – India has long been known for its skilled artisans and crafters, who use tools and their hands to create their creations. They are commonly known as Vishwakarma.…The fresh plan will allow them to increase the effectiveness, scope, and reach of their incorporating their products into the MSME value chain. The The plan’s components won’t just be financial assistance. but also having access to advanced training, understanding of contemporary efficient green technology and digital techniques, brand promotion, connection to regional and international markets, and digital as well as social security payments. This will be to the huge benefit of OBCs, women, people, and Scheduled Castes and Tribes being a part of the weaker groups.
“Traditionally, the creators of this nation have been the millions of “Vishwakarmas,” or hard-working people, who produce something by using their hands, tools, and machinery. There are innumerable persons on our long list, including blacksmiths, goldsmiths, potters, carpenters, sculptors, artisans, masons, etc. In order to reward all of these Vishwakarmas for their dedication, the nation has introduced a number of incentive programs for the first time in this budget. For such people, provisions have been created for training, technology, credit, and market support.
Vishwakarma Yojana Benefits
PM Vishwakarma is a holistic Scheme that envisages to provide end-to-end support to the artisans and craftspeople through the following components:
- Recognition: PM Vishwakarma Certificate and ID Card
- Skill Upgradation
- Toolkit Incentive
- Credit Support
- Incentive for Digital Transactions
- Marketing Support
1. PM Vishwakarma Certificate and ID Card
The PM Vishwakarma Certificate and PM Vishwakarma ID Card will be given to the craftsmen and crafters. The certificate and ID card must each have a distinctive digital number that is created and displayed. With the help of the certificate, the candidate will be able to be recognized as a Vishwakarma and become qualified to receive all of the benefits offered by the PM Vishwakarma Scheme. The beneficiaries will receive both a physical copy and a digital copy of the PM Vishwakarma Certificate and ID Card.
2. Skill Upgradation
The goal of the skill-building initiative under PM Vishwakarma is to improve the skills of traditional artisans and craftspeople who have been using their hands and traditional tools for centuries. Three parts make up this intervention: skill verification, basic skilling, and advanced skilling. Modern tools, design aspects, and connection with the sector value chain are to be included as major domain skilling components in the skill upgrade. In addition to subject expertise, the skill upgrade would also cover areas that would provide Vishwakarma access to other components of the program, such as toolkit utilization, marketing assistance, enterprise formation and expansion through credit, and advantages of digital transactions.
Skill Verification :
To determine the current skill levels of all registered beneficiaries, skill verification will be conducted. It will be the first significant step in the skill-upgrading process, and by determining the existing skill levels, PM Vishwakarma will be able to map out an educated future path for skill-upgrading. It will be an easy, quick, and demonstrative (computer-based and/or tactile) test to evaluate the Vishwakarmas’ current abilities, comfort level with contemporary tools and procedures, and any knowledge gaps. The MoMSME will be informed of the skill level evaluation after verification in order to offer the toolkit incentive. The verification will take place prior to and as part of the Basic Training. It will take place in the designated Basic Training centers.
Basic Training :
- All registered Vishwakarmas are thought to benefit greatly from Basic Training, which is also a requirement for qualifying for the first loan tranche. Therefore, the goal of Basic Training is to provide the Vishwakarmas with the tools they need to upgrade/modernize their tools, increase their skill levels, and access credit support. As a result, there will be an increase in proficiency, entrepreneurship, and income levels. The training will be provided in designated skill centers, which are often located at district headquarters, nearby districts, industrial clusters, etc.
- Basic Training will be for 40 hours spread over 5-7 days, and it will entail upgrading and formalizing previously learned abilities (via Recognition of Prior Learning, or RPL). The development of specialized training programs for each trade/type of Vishwakarmas, as well as toolkits, has taken advantage of the expertise of industry and associations, community organizations, and knowledge already present in the MSDE skill ecosystem. Through interactions with knowledgeable MoRD organizations like NIRD and MoMSME, this will be further developed. Through exposure to contemporary tools and best practices, designs, introduction to the greater value chain of the sector, development of digital, financial, and soft skills, and inculcation of marketing and entrepreneurial knowledge, beneficiaries will upskill in their trade. After completing the program, the Vishwakarma should feel confident enough to experiment with new business methods in their line of work, be able to use the tools deftly, and have a clear plan for putting the ensuing Rs 1 lakh loan to good use.
- The training will be given by qualified, experienced instructors in a classroom setting (Guru-Shishya Parampara), with instructional materials and tools for hands-on teaching. Modern training audio-visual aids will enhance the instruction. The 40 hours of training will include printed, electronic, and audio-visual training materials as well as toolkit instructions. Master trainers will be subject-matter specialists who are recruited from the business and civic communities. An impartial evaluation will be done after the fundamental training, and those who pass will receive National Skill Qualification Framework (NSQF) certification. The outcomes of the Basic Training will be provided to MoMSME for additional loan disbursement.
Advanced Skill Training :
- Beneficiaries interested in pursuing additional skill development after completing Basic Skilling must enroll in Advanced Skill Training lasting at least 15 days/120 hours at specified Training Centers.
- The goal of the Advanced Skilling will be to increase the Vishwakarmas’ understanding of entrepreneurship so that they will feel secure enough to transition from self-employment to starting their own business. Deeper awareness of contemporary technology, design components, and enabling value chain links with identified anchor industry partners are all promoted through advanced skilling. The topics of basic training that require additional focus will also be covered. The beneficiaries will receive toolkit video manuals. The second loan tranche, which is available under the program and has a maximum value of Rs. 2 lakh, will also be disclosed to the beneficiary.
- Delivering training and creating resource materials for 120 hours will follow the same procedure as specified for Basic Training and RPL. A thorough evaluation will be conducted at the conclusion of training, and those who pass will receive NSQF certification. Along with help for pay compensation, boarding and housing will be offered. The government shall provide free housing and meals throughout the program.
- The MSDE will work with the District Implementation Committee to conduct outreach, provide information, and mobilize Vishwakarmas for Skill Verification, Basic, and Advanced Training. This work will be under the State Level Committee’s supervision. The CSCs’ outreach and informational effort will be greatly aided by the information on skill upgrading.
- For conducting Basic and Advanced Skill Training, the MSDE’s current training infrastructure (PMKKs, ITIs, Industry Clusters, Other Centers, etc.); MSME ecosystem (MSME Technology Centers, ITI, KVIC, etc.); and MoRD facilities will be efficiently utilized.
- The Skill India Digital platform will make use of the data of trained Vishwakarmas at every step and training life cycle to provide frequent information on skilling possibilities and upgradation, study material for lifelong learning, and employment prospects.
- While enrolled in the Basic and Advanced Training programs, each recipient is entitled to a daily training allowance of Rs. 500.
- Following program completion and MSDE certification, training stipend will be transferred to beneficiaries’ bank accounts via DBT mechanism.
3. Toolkit Incentive
- After the beneficiary’s skills have been verified at the beginning of basic training, a toolkit reward worth Rs. 15,000 will be given to them. The incentive will be given to the recipients via e-RUPI/e-vouchers, which they can use at authorized centers to buy better toolkits.
- Vishwakarmas would be given a digital manual and brief video tutorials to familiarize and empower them in the expert management of contemporary tools in their crafts. The upgraded toolkits will give the Vishwakarmas the ability to raise their production and quality standards, which will increase productivity and the value of their goods.
4. Credit Support
Access to affordable finance under this Scheme shall be enabled in order to improve and strengthen the skills of traditional artisans and craftspeople. To be eligible for the first tranche of credit support of up to Rs 1 lakh under the Scheme, the beneficiary must have undertaken skill verification and successfully completed basic skill training.
Through the following actions, this component seeks to give the Vishwakarmas simple access to institutional finance that is subsidised for business development :
Enterprise Development Loan
- Under PM Vishwakarma, chosen beneficiaries will receive financial assistance in the form of “Enterprise Development Loans” that are not secured by any type of collateral.
- The beneficiaries can get the first loan tranche up to Rs. 1,000,000 and the second loan tranche up to Rs. 2,000,000 of the total amount of financial assistance, which is Rs. 3,000,000.
- The skilled recipients who maintain a regular loan account, have implemented digital transactions in their organization, or have completed Advanced Skill Training will be eligible for the second loan tranche. Before receiving the second loan tranche, they had to pay off the first loan tranche.
- The loan must be repaid throughout the course of the repayment period, which is shown in the following table :
|Tranches||Amount of Loan|
|Tenure of Repayment|
|1st Tranche||Upto 1,00,000||18 months|
|2nd Tranche||Upto 2,00,000||30 months|
Concessional Interest and Subvention
- Concessional interest rates will be fixed at 5% for borrowing from beneficiaries. The Indian government will subsidize interest payments to banks in the amount of 8% up front. The interest collected from beneficiaries and the MoMSME’s subvention are depicted in Annexure-A.
- A beneficiary is qualified to receive the interest subsidy for both the first and second loan installments.
- The interest subvention cap of 8% may be revised by a Credit Oversight Committee led by the Secretary of DFS while taking into account current interest rates.
The Credit Provide Money Trust over Micro, Micro, and Small Companies (CGTMSE), which will be operated on an investment basis as well as the holdings will be created on an annual basis ending with the current fiscal year, shall provide a Graded Guarantee Cover for all loans punished by the Lending Institutions:
1. Graded Guarantee Cover for first tranche of the loans:
- First Loss Default (0 to 7.5%): 100% coverage
- Second Loss (More than 7.5% and up to 20%): 80% coverage of default portfolio, and
- Third Loss (More than 20% and up to 50%): 60% coverage of default portfolio.
2. Graded Guarantee Cover for the second tranche of the loan will be as follows:
- First Loss Default (Up to 5%): 100% coverage and for,
- Second Loss (beyond 5% and up to 15%): 80% coverage of default portfolio.
Participating Financial Institutions
Lending under this Scheme is permitted to Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Finance Companies, and Micro Finance Institutions. To ensure that the Scheme is fully covered, the Lending Institutions will be urged to make use of their network of business correspondents and associates in the field.
5. Incentive for Digital Transactions
- By enabling beneficiaries to adopt digital transactions, the Scheme seeks to empower them digitally. Through the Aadhaar Payment Bridge System (APBS), Re 1 per eligible digital transaction (up to a maximum of 100 eligible transactions) will be credited to the beneficiary’s bank account each month in DBT mode. A digital payout or receipt in the beneficiary’s bank account is referred to in this context as a “eligible transaction.”
- Through cashbacks, the Scheme intends to encourage digital purchases made by craftsmen and craftspeople. The online transaction history that has been developed is anticipated to improve skilled workers’ credit scores for future credit demands. With this incentive, the Vishwakarmas are being encouraged to adopt a new digital culture that embraces the ecosystem of digital payments.
6. Marketing Support
For the Vishwakarmas to improve their standard of living and way of life, market links must be established. The products of the craftsmen and craftspeople registered under the Scheme shall receive marketing and branding help from the National Committee for Marketing (NCM).
To strengthen the recipients’ connection to the value chain of MSMEs and established businesses, marketing support will be provided in the form of quality certification, branding, advertising, publicity, and other marketing activities. The membership of NCM is listed in Annexure-B and will comprise marketing professionals. The NCM may use the services of specialized organizations or entities for beneficiary market support initiatives.
The NCM will have a dedicated corpus of funds for carrying out marketing support activities and it will assist the Vishwakarmas in the following:
- Quality Certification: The NCM is responsible for making sure that the items distributed and marketed through its channels meet industry standards for quality. This would also encourage the Vishwakarmas to raise the caliber of their goods and services so that they may be sold and remain competitive in both home and foreign markets. In an effort to strengthen their connection to both domestic and international value chains, efforts will be made to develop a quality certification system. The recipients will be qualified for help with quality certification, which will raise the caliber of their goods and services and establish standards for proficiency.
- Branding & Promotion: The NCM will assist in establishing a physical and online presence for the Vishwakarmas’ goods and services. For the purpose of increasing credibility and commercial acceptance, the products are intended to be offered under a single brand identity. Through social media campaigns and digital advertising, the brand will be promoted. Additionally, it will assist in managing the distribution channels by providing additional operational and logistical support.
- E-commerce: The NCM will make attempts to establish e-commerce linkages with GeM, Khadi India, MSME Mart, and other businesses in order to enable cataloging and onboarding of the Vishwakarmas’ goods and services on well-known e-commerce platforms like Open Network for Digital Commerce (ONDC) platform. The recipients will be qualified to receive assistance with costs associated with onboarding on e-commerce platforms.
- Market Linkages: Through the incorporation of Vishwakarmas into supply chains, development of backward and forward links, support for packaging and logistics, etc., the NCM will promote cooperation with customers. In an effort to reach beneficiaries in far-off places, efforts will be made to encourage the use of digital marketing.
- Exporters & Traders: The NCM would make it easier to connect the beneficiaries with the right exporters and dealers who work in this industry. Collaborations with industry organizations and export promotion councils will be used to accomplish this.
- Assistance for collective display of PM Vishwakarma Products: NCM may think about offering help to associations, trusts, and societies of the artisan groups registered under any State or Central Governments Act in the chosen crafts for collective presentation of PM Vishwakarma Products.