PM Vishwakarma Yojana Benefits Includes Skill Upgradation, Toolkit Incentives, Credit Support, Incentives for Digital Transactions, etc. Check the Details Regarding All the Benefits in Detail Below.
The PM Vishwakarma Yojana is a groundbreaking initiative introduced by the Government of India to support and empower traditional artisans and craftspeople across the country.
This holistic scheme aims to provide end-to-end support to these skilled individuals, often referred to as “Vishwakarmas,” through a range of carefully designed components. In this detailed article, we will explore the various benefits offered under the PM Vishwakarma Yojana, ensuring that no information is left behind.
Contents
Recognition: PM Vishwakarma Certificate and ID Card
The first step in the PM Vishwakarma Yojana is the formal recognition of artisans and craftspeople. This recognition comes in the form of two important documents:
a) PM Vishwakarma Certificate
b) PM Vishwakarma ID Card
These documents serve as official proof of the artisan’s status as a Vishwakarma. Each certificate and ID card is assigned a unique digital number, which is reflected on both documents. This unique identifier is crucial for several reasons:
- It establishes the artisan’s identity within the scheme.
- It makes the artisan eligible for all benefits offered under the PM Vishwakarma Yojana.
- It helps in tracking the artisan’s progress and participation in various components of the scheme.
The PM Vishwakarma Certificate and ID Card are provided to beneficiaries in both digital and physical formats. This dual format ensures that artisans can easily access and present their credentials, whether in person or online. The digital format is particularly useful in today’s increasingly digital world, allowing for quick verification and seamless integration with other digital systems.
Read Here: PM Vishwakarma Yojana Eligibility
PM Vishwakarma Yojana Benefits: Skill Upgradation
One of the core components of the PM Vishwakarma Yojana is the comprehensive skill upgradation program. This initiative recognizes that while traditional artisans and craftspeople possess immense skill and knowledge passed down through generations, there is always room for enhancement and adaptation to modern techniques and market demands.
The skill upgradation component consists of three main elements:
a) Skill Verification
b) Basic Skilling
c) Advanced Skilling
Let’s get into each of these elements in detail:
a) Skill Verification
Skill verification is the first step in the skill upgradation process. It serves as a crucial assessment tool to determine the existing skill levels of registered beneficiaries. This process is designed to be simple, short, and demonstrative, utilizing both computer-based and physical tests as appropriate.
Key aspects of skill verification include:
- Assessment of current skill levels
- Evaluation of familiarity with modern tools and techniques
- Identification of knowledge gaps
The results of this verification process are shared with the Ministry of Micro, Small and Medium Enterprises (MOMSME) to facilitate the provision of toolkit incentives. Importantly, skill verification is conducted as part of, and precedes, the Basic Training program. It takes place at the same centers nominated for Basic Training.
b) Basic Skill Training
Basic Training is considered an essential component of the PM Vishwakarma Yojana. It serves multiple purposes:
- Improving the overall skills of registered Vishwakarmas
- Serving as an eligibility condition for drawing the first tranche of loan under the scheme
- Enabling Vishwakarmas to upgrade and modernize their tools
- Enhancing income levels and proficiency
- Contemporizing knowledge
- Fostering entrepreneurship
The Basic Training program is structured as follows:
- Duration: 40 hours
- Timeframe: Spread over 5-7 days
- Location: Identified skill centers, typically at district headquarters, neighboring districts, or industrial clusters
The training curriculum is carefully designed to include:
- Formalization of acquired skills through Recognition of Prior Learning (RPL)
- Skill upgradation
- Exposure to modern tools and best practices
- Introduction to new designs
- Familiarization with the larger value chain of the sector
- Digital, financial, and soft skills training
- Marketing and entrepreneurial knowledge
To develop this customized training program, expertise has been harnessed from various sources:
- Industry associations
- Community organizations
- MSDE (Ministry of Skill Development and Entrepreneurship) skill ecosystem
- Expert institutions like NIRD (National Institute of Rural Development) and MoMSME (Ministry of Micro, Small and Medium Enterprises)
The training is delivered through experienced, certified trainers in a classroom mode, following the traditional Guru-Shishya Parampara (mentor-disciple tradition). This approach ensures that the training is culturally relevant and easily understood by the artisans.
Key features of the Basic Training program include:
- Practical training with equipment and tools
- Use of modern audio-visual training aids
- Provision of training materials in printed, electronic, and audio-visual formats
- Manuals on toolkits
- Involvement of master trainers who are experts in their respective trades
Upon completion of the Basic Training, beneficiaries undergo an independent assessment. Successful candidates receive a National Skill Qualification Framework (NSQF) certification, which is a nationally recognized qualification. The results of this training are shared with MOMSME to facilitate further loan disbursements.
To ensure that artisans can fully participate in the training without financial burden, the following support is provided:
- Free boarding and lodging during the training period
- Wage compensation support
The primary focus of this skill training is to handhold and facilitate beneficiaries in enhancing the quality of their products.
c) Advanced Skill Training
For beneficiaries who wish to further enhance their skills after completing the Basic Training, the PM Vishwakarma Yojana offers an Advanced Skill Training program. This program is designed to deepen entrepreneurial knowledge and boost confidence, enabling Vishwakarmas to potentially expand from self-employment to running full-fledged enterprises.
Key features of the Advanced Skill Training include:
- Duration: 15 days or 120 hours (or more)
- Location: Designated Training Centres
- Focus areas:
- Latest technologies
- Design elements
- Value chain linkages with identified anchor industry partners
- Deeper exploration of subjects covered in basic training
- Awareness about the second loan tranche of up to Rs. 2 Lakh available under the scheme
The delivery process for Advanced Training follows a similar pattern to the Basic Training:
- Use of the same training methodology
- Preparation of specialized resource material for the 120-hour program
- Proper assessment at the end of training
- Provision of NSQF certification to successful candidates
- Free boarding and lodging
- Wage compensation support
Training Infrastructure
To implement these training programs effectively, the PM Vishwakarma Yojana leverages existing training infrastructure from various sources:
- MSDE ecosystem: PMKKS (Pradhan Mantri Kaushal Kendra), ITIs (Industrial Training Institutes), Industry Clusters, and other centers
- MSME ecosystem: MSME Technology Centres, ITIs, KVIC (Khadi and Village Industries Commission)
- Facilities of the Ministry of Rural Development (MoRD)
Digital Integration
The PM Vishwakarma Yojana incorporates digital technology to enhance the training experience and provide ongoing support to beneficiaries. The Skill India Digital portal plays a crucial role in this aspect:
- It maintains data of trained Vishwakarmas at every stage of the training lifecycle
- Provides regular updates on skilling opportunities and upgradation
- Offers study material for lifelong learning
- Shares information on employment opportunities
Training Stipend
To further support beneficiaries during their training period, the scheme provides a training stipend:
- Amount: Rs. 500 per day
- Eligibility: For both Basic and Advanced Training programs
- Disbursement: Credited to the beneficiary’s bank account through DBT (Direct Benefit Transfer) mode
- Condition: Disbursed after training completion and certification by MSDE
PM Vishwakarma Yojana Benefits: Toolkit Incentive
Recognizing the importance of proper tools in enhancing the quality and productivity of artisans’ work, the PM Vishwakarma Yojana provides a toolkit incentive:
- Amount: Rs. 15,000
- Timing: Provided after Skill Verification at the start of Basic Training
- Disbursement method: Through e-RUPI/e-vouchers
- Usage: Can be utilized at designated centers to procure improved toolkits
To ensure that beneficiaries can effectively use these modern tools, the scheme also provides:
- A digital guide
- Short video tutorials
These resources are designed to familiarize Vishwakarmas with the skillful handling of modern tools in their respective trades. The improved toolkits are expected to enhance the quality and production levels of the artisans, leading to higher productivity and increased value for their products.
PM Vishwakarma Yojana Benefits: Credit Support
Access to affordable credit is crucial for the growth and sustainability of traditional artisans and craftspeople. The PM Vishwakarma Yojana facilitates this through its Credit Support component. To be eligible for this support, beneficiaries must have:
- Undergone Skill Verification
- Successfully completed Basic Skill training
The credit support is provided in the form of Enterprise Development Loans, which have the following features:
Enterprise Development Loan
- Type: Collateral-free loans
- Total quantum: Rs. 3,00,000
- Structure:
- First loan tranche: Up to Rs. 1,00,000
- Second loan tranche: Up to Rs. 2,00,000
Conditions for the second loan tranche:
- Beneficiary must maintain a standard loan account
- Must have adopted digital transactions in their business or undergone Advanced Skill Training
- Must have repaid the first loan tranche
Repayment terms:
- First Tranche (Up to Rs. 1,00,000): 18 months
- Second Tranche (Up to Rs. 2,00,000): 30 months
Concessional Interest and Subvention
To make the loans more affordable for beneficiaries, the scheme offers:
- Concessional interest rate: Fixed at 5% for beneficiaries
- Interest subvention: Government of India provides 8% subvention upfront to the banks
This arrangement ensures that the effective interest rate for beneficiaries remains low, making the loans more accessible and manageable.
Credit Guarantee
To encourage financial institutions to lend under this scheme, a Credit Guarantee is provided through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The guarantee cover is structured as follows:
For the first tranche of 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
- Third Loss (More than 20% and up to 50%): 60% coverage of default portfolio
- Maximum guarantee coverage: 50% of the year portfolio
For the second tranche of loans:
- First Loss Default (Up to 5%): 100% coverage
- Second Loss (Beyond 5% and up to 15%): 80% coverage of default portfolio
- Maximum guarantee coverage: 15% of the year portfolio
Participating Financial Institutions
A wide range of financial institutions are eligible to lend under the PM Vishwakarma Yojana:
- Scheduled Commercial Banks
- Regional Rural Banks
- Small Finance Banks
- Cooperative Banks
- Non-Banking Finance Companies
- Micro Finance Institutions
These institutions are encouraged to use their network of field functionaries, including Business Correspondents and Associates, to ensure maximum coverage of the scheme.
PM Vishwakarma Yojana Benefits: Incentives for Digital Transactions
The PM Vishwakarma Yojana aims to promote digital financial inclusion among artisans and craftspeople. To achieve this, the scheme offers incentives for digital transactions:
- Amount: Re. 1 per eligible digital transaction
- Maximum: Up to 100 eligible transactions monthly
- Disbursement: Credited to the beneficiary’s bank account in DBT mode through Aadhaar Payment Bridge System (APBS)
An eligible transaction is defined as a digital pay-out or receipt in the bank account of the beneficiary. This incentive serves multiple purposes:
- Encourages Vishwakarmas to adopt digital payment methods
- Creates an online transaction trail, potentially enhancing the credit score of skilled workers
- Supports future credit needs
- Promotes a new digital culture among Vishwakarmas
- Marketing Support
Creating market linkages is crucial for improving the livelihood and quality of life of Vishwakarmas. The PM Vishwakarma Yojana addresses this through its Marketing Support component, overseen by the National Committee for Marketing (NCM). The NCM provides comprehensive marketing and branding support, including:
Quality Certification
The NCM ensures that products marketed and distributed through its channels meet market standards. This initiative:
- Motivates Vishwakarmas to improve product quality
- Makes products more competitive in domestic and international markets
- Aims to create a certification system for quality
- Enhances linkages to domestic and global value chains
Beneficiaries are eligible for assistance in obtaining Quality Certification, which can significantly enhance the marketability of their products and services.
Branding & Promotion
The NCM supports Vishwakarmas in creating both physical and online presence for their products and services. Key features include:
- Creation of a common brand identity to enhance credibility and market acceptability
- Promotion through digital advertising and social media campaigns
- Management of distribution channels
- Provision of operations and logistics support
E-commerce Integration
To help Vishwakarmas tap into the growing e-commerce market, the NCM:
- Enables cataloguing and onboarding of products and services on popular e-commerce platforms
- Focuses on integration with the Open Network for Digital Commerce (ONDC) platform
- Facilitates e-commerce linkages with platforms like GeM, Khadi India, and MSME Mart
- Provides assistance for onboarding-related expenses on e-commerce platforms
Market Linkages
The NCM works to create robust market linkages for Vishwakarmas through various initiatives:
- Integration of Vishwakarmas into supply chains
- Creation of backward and forward linkages
- Provision of packaging and logistics support
- Promotion of digital marketing for wider reach and publicity
Exporters & Traders Connections
To expand the market reach of Vishwakarmas, the NCM:
- Facilitates linkages with suitable exporters and traders in the sector
- Collaborates with Industry Bodies and Export Promotion Councils
Trade Fair Participation
The scheme facilitates the participation of beneficiaries in trade fairs and exhibitions through:
- Inter-ministerial convergence to provide access to trade fair opportunities
- Registration of interested Vishwakarmas on the Udyam Registration Portal
- Access to benefits under the Procurement and Marketing Support Scheme (PMSS) or International Cooperation scheme of MoMSME
Collective Display Assistance
The NCM may provide assistance for collective display of PM Vishwakarma Products to:
- Associations
- Trusts
- Societies of artisan groups registered under any State or Central Government Act in selected trades
Conclusion
The PM Vishwakarma Yojana is a comprehensive and well-structured scheme that addresses multiple aspects of an artisan’s journey towards economic empowerment. From skill development and financial support to market linkages and digital integration, the scheme provides a holistic ecosystem for traditional artisans and craftspeople to thrive in the modern economy. By participating in this scheme, Vishwakarmas can not only preserve their traditional skills but also adapt them to contemporary market demands, ensuring the longevity and prosperity of India’s rich artisanal heritage.