➤ PM Vishwa Karma yojana Scheme launched on 17th September
➤ Scheme to begin with initial allocation of ₹ 13000 – 15000 crore
➤ 13.5 crore of poor countrymen and women have broken free from the chains of poverty and entered the new middle class: Shri Narendra Modi
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi today approved a new Central Sector Scheme “PM Vishwakarma” with a financial outlay of Rs.13,000 crore for a period of five years (FY 2023-24 to FY 2027-28). The scheme aims to strengthen and nurture the Guru-Shishya parampara or family-based practice of traditional skills by artisans and craftspeople working with their hands and tools. The scheme also aims at improving the quality, as well as the reach of products and services of artisans and craftspeople and to ensure that the Vishwakarmas are integrated with the domestic and global value chains.
Under PM Vishwakarma scheme, the artisans and craftspeople will be provided recognition through PM Vishwakarma certificate and ID card, Credit Support upto Rs.1 lakh (First Tranche) and Rs.2 lakh (Second Tranche) with a concessional interest rate of 5%. The Scheme will further provide Skill Upgradation, Toolkit Incentive, Incentive for Digital Transactions and Marketing Support.
The scheme will provide support to artisans and craftspeople of rural and urban areas across India. Eighteen traditional trades will be covered in the first instance under PM Vishwakarma. These trades include
| SNo. | Trade | Description |
| Wood Based | ||
| 1. | Carpenter (Suthar) | Self-employed artisans and craftspeople who work with their hands and tools to make/assemble wooden products or alter/repair wooden fixtures mostly engaged in traditional/unorganised sector. |
| 2. | Boat Maker | Self-employed artisans and craftspeople who work with their hands and tools to make, assemble, alter and/or repair wooden boats in the unorganized sector. |
| Iron/Metal Based/Stone Based | ||
| 3. | Armourer | Self-employed artisans and craftspeople who manufacture, repair or service various types of arms like swords, shields, knives, helmets, etc. using hands and traditional tools employed in the unorganized sector. |
| 4. | Blacksmith (Lohar) | Self-employed artisans and craftspeople, including blacksmiths, coppersmiths and bronzesmiths, who work with their hands and tools to forge metals like iron, copper, brass or bronze to get the required shape and size by heating, bending, hammering, etc. to create products in the unorganized sector. |
| 5. | Hammer and Tool Kit Maker | Self-employed artisans and craftspeople who work with their hands and tools to forge metals like iron to get the required shape and size by heating, bending, hammering, etc. to create hammer and tools in the unorganized sector. |
| 6. | Locksmith | Self-employed artisans and craftspeople found in small roadside stalls or travelling in streets who use hands and traditional tools like cutter, hammer, needle, threads, etc in the unorganised sector to assemble, install and repair locks. |
| 7. | Sculptor (Moortikar, Stone Carver), Stone Breaker | Self-employed artisans and craftspeople also known as Shilpis or Moortikars who work with their hands and tools to carve, break or shape stones into three-dimensional artworks in the unorganized sector. |
| Gold/ Silver Based | ||
| 8. | Goldsmith (Sunar) | Self-employed goldsmiths/ sunars/ swarnakars, silversmiths are the artisans and craftspeople who work with their hands and tools to create and design intricate jewellery and ornamental pieces with gold and other precious metals in the unorganized sector. |
| Clay Based | ||
| 9. | Potter (Kumhaar) | Self-employed artisans and craftspeople who work with their hands and tools to create pottery articles by molding clay on a wheel and baking them in a kiln using traditional methods in the unorganized sector. |
| Leather Based | ||
| 10. | Cobbler (Charmakar)/ Shoesmith/ Footwear Artisan | Self-employed artisans found in small roadside stalls or traveling in streets use hands and traditional tools like cutters, hammers, needles, threads, etc. to manufacture, repair, restore, and modify footwear. |
| Architecture/ Construction Based | ||
| 11. | Masons (Raaj Mistri) | Masons are artisans and craftspeople who work with their hands and tools to perform works such as constructing structures using brick/block, plastering, cement, waterproofing work, etc. in the unorganized sector. These artisans are also known as Raaj Mistris. |
| Other | ||
| 12. | Basket/ Mat/ Broom Maker/ Coir Weaver | Basket Makers are self-employed artisans and craftspeople who weave pliable materials in order to make different types of baskets in the unorganized sector. Mat makers/Coir Weavers are self-employed artisans and craftspeople who weave coir and bamboo materials to make items such as Baskets, Mats, etc. Broom makers are self-employed artisans and craftspeople who process the bristles collected from various grass or plants such as coconut to make brooms by using tools such as wooden handles, scissors, knives, etc. |
| 13. | Doll & Toy Maker (Traditional) | Doll and toy Makers (Traditional) are self-employed artisans and craftspeople who work with their hands and tools to make Dolls and Toys by using materials such as wool, threads, cotton, wood, etc. |
| 14. | Barber (Naai) | Self-employed artisans and craftspeople who work with their hands using scissors, blades, combs, shaving creams, etc. to provide grooming services to people, primarily hair cutting, shaving, etc. |
| 15. | Garland Maker (Malakaar) | Self-employed artisans who work with their hands to create decorative garlands made of flowers, leaves, or other materials for use at rituals, or cultural or ceremonial occasions. They meticulously arrange and string together these elements, often incorporating different colors and textures, to produce beautiful and fragrant adornments for various cultural, religious, or celebratory purposes. |
| 16. | Washerman (Dhobi) | Self-employed artisans and craftspeople who work with their hands and provide services such as washing and ironing clothes to people. They primarily use manual washing techniques, local soaps, wooden stick ‘thapi’, and coal-based irons in the unorganized sector. |
| 17. | Tailor (Darzi) | Self-employed artisans and craftspeople who work with their hands using sewing machines, scissors, buttons, fabrics, threads, needles, etc. to stitch and alter various dresses/garments in the unorganized sector. |
| 18. | Fishing Net Maker | Self-employed artisans and craftspeople who work with hands in an unorganized sector to craft fishing nets using various materials like ropes, twines, or threads. They employ traditional techniques or modern machinery to weave and knot the nets into specific designs and sizes, ensuring they are strong and durable for catching fish and other aquatic creatures. |
The list of trades may be updated and modified by the National Steering Committee with the approval of Minister for MSME, Government of India.
PM Vishwakarma is a holistic Scheme that envisages to provide end-to-end support to the artisans and craftspeople through the following components:
The artisans and craftspeople will receive PM Vishwakarma Certificate and PM Vishwakarma ID Card. A unique digital number shall be created and reflected on the certificate and the ID Card. The certificate shall enable the applicant’s recognition as a Vishwakarma and shall make them eligible to avail all the benefits under the PM Vishwakarma Scheme. The PM Vishwakarma Certificate and ID Card will be provided digitally as well as in physical form to the beneficiaries.
The skilling intervention under PM Vishwakarma is aimed at enhancing the capabilities of traditional artisans and craftspeople, who have been working with hands and traditional tools for generations. This intervention consists of three components: Skill Verification, Basic Skilling and Advanced Skilling. The skill upgradation shall embed modern tools, design elements and integration with the sector value chain as its key components of domain skilling. Besides domain skills, the skill upgradation would also cover aspects which shall enable the Vishwakarma to access other features of the scheme, including usage of toolkits, marketing support, enterprise creation and expansion through credit and benefits of digital transactions.
Skill Verification for all registered beneficiaries would be done to ascertain their existing skill levels. It will be the first significant activity in the skill upgradation process and by assessing the current levels of skills, future path of skill upgradation in PM Vishwakarma will be charted in an informed manner. It will be a simple, short, demonstrative (computer based and/or physical) test, to make a broad assessment of the Vishwakarmas’ existing skills, familiarity with modern tools and techniques, and any knowledge gaps. The assessment of skill levels through verification will be shared with MoMSME so that toolkit incentive can be provided. The verification will be a part of, and will precede, the Basic Training. It will be conducted at the centres nominated for Basic Training.
Basic Training is considered essential for improving the skills of all registered Vishwakarmas, and an eligibility condition for drawing the first tranche of loan. Thus, the purpose of Basic Training will be to enable the Vishwakarmas to improve their skill levels, to avail credit support and upgrade/modernize their tools. This will lead to improved income levels and proficiency, contemporizing of knowledge, and entrepreneurship. The training will be imparted in identified skill centres, ordinarily at district HQ/ neighboring districts/ industrial cluster, etc.
tools and best practices, designs, introduction to the larger value chain of the sector; digital, financial, and soft skills; and imbibed with marketing and entrepreneurial knowledge. At the end of the training, the Vishwakarma should be confident to attempt new business practices in their trade, use the tools skillfully and have a concrete plan to utilize the subsequent Rs 1 lakh loan.
Skilling will promote deeper understanding of latest technologies, design elements, and enabling value chain linkages with identified anchor industry partners. The subjects of basic training requiring more attention will also be taken up. Video manuals on toolkits will be provided to the beneficiaries. The beneficiary will also be made aware of the second loan tranche of upto Rs. 2 Lakh available under the scheme.
To enhance and support the capabilities of traditional artisans and craftspeople, access to affordable credit under this Scheme shall be facilitated. The beneficiary should have undergone Skill Verification and successfully completed Basic Skill training to be eligible to avail first tranche of credit support of upto Rs 1 lakh under the Scheme.
The aim of this component is to provide the Vishwakarmas with easy access to subsidized institutional credit for enterprise development through the following interventions:
(i) Under PM Vishwakarma, financial support will be provided to the targeted beneficiaries in the form of collateral free ‘Enterprise Development Loans’.
(ii) The total quantum of loan assistance would be Rs. 3,00,000/- wherein, the beneficiaries can avail the first loan tranche upto Rs. 1,00,000/- and second loan tranche upto Rs 2,00,000/-.
(iii) The second loan tranche will be available to skilled beneficiaries who maintain a standard loan account and have adopted digital transactions in their business or have undergone Advanced Skill Training. They must have repaid the first loan tranche before availing the second tranche.
(iv) The loan is required to be repaid in monthly installments; the term of repayment is as indicated in the following table:
| Tranches | Amount of Loan (In Rs.) | Tenure of Repayment (In months) |
| 1st Tranche | Upto 1,00,000 | 18 months |
| 2nd Tranche | Upto 2,00,000 | 30 months |
A Graded Guarantee Cover for all loans sanctioned by the Lending Institutions shall be covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE), which shall be operated on a portfolio basis and the portfolio will be created on an annual basis ending with the financial year, subject to the following conditions:
Maximum guarantee coverage will be 50% of the year portfolio for the First tranche of loan.
Maximum guarantee coverage will be 15% of the year portfolio for the Second tranche of loan.
The details of coverage are given in the following table:
| First Loan | Second Loan | |||
| Portfolio | Coverage | Portfolio | Coverage | |
| First Loss | 0 to 7.5% | 100% | 0 to 5% | 100% |
| Second Loss | Above 7.5% to 20% | 80% | Above 5% to 15% | 80% |
| Third Loss | Above 20% to 50% | 60% | ||
| Maximum Guarantee Cover | 50% | 15% | ||
| Effective Guarantee Cover | 35.5% | 13% | ||
Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, Non-Banking Finance Companies and Micro Finance Institutions, are eligible to lend under this Scheme. The Lending Institutions will be encouraged to use their network of field functionaries i.e., Business Correspondents/ Associates to ensure maximum coverage of the Scheme.
(I) The Scheme aims to digitally empower the beneficiaries by facilitating them to adopt digital transactions. An amount of Re. 1 per eligible digital transaction (upto a maximum of 100 eligible transaction) monthly will be credited to the beneficiary’s bank account in DBT mode through Aadhaar Payment Bridge System (APBS). Here, eligible transaction means a digital pay-out or receipt in the bank account of the beneficiary.
(ii) The Scheme envisages to incentivize digital transactions undertaken by the artisans and craftspeople through cashbacks. The online transaction trail so created is expected to enhance the credit score of skilled workers for supporting their future credit needs. This incentive is an attempt to promote a new digital culture among the Vishwakarmas with regard to embracing digital payments ecosystem.
Creating market linkages for the Vishwakarmas is a critical step in improving their livelihood and quality of life. The National Committee for Marketing (NCM) shall provide marketing and branding support for the products of the artisans and craftspeople registered under the Scheme. Marketing Support in the form of quality certification, branding, advertising, publicity and other marketing activities would be extended to the beneficiaries to improve their linkage to value chain of
MSMEs and established companies. The composition of NCM, will include marketing experts and is given in Annexure-B. The NCM may engage services of professional agencies/entities for market support activities for the beneficiaries.
The NCM will have a dedicated corpus of funds for carrying out marketing support activities and it will assist the Vishwakarmas in the following:
