PM Vishwakarma Yojana: Eligibility, Benefits, Registration Process and Incentives

What is PM Vishwakarma Yojana?
A visionary initiative by PM Narendra Modi, aimed at elevating the status of traditional artisans and craftspeople, often known as ‘Vishwakarmas.’ These skilled individuals, including blacksmiths, goldsmiths, potters, carpenters, and sculptors, constitute a significant portion of India’s informal workforce.

This central sector scheme, fully funded by the Government of India with an initial allocation of Rs 13,000 crore, will be jointly executed by the Ministry of Micro, Small and Medium Enterprises (MoMSME), the Ministry of Skill Development and Entrepreneurship (MSDE), and the Department of Financial Services (DFS) under the Ministry of Finance (MoF). Its overarching goal is to enhance the quality and global accessibility of artisanal products and services, ultimately integrating these talented artisans into domestic and international value chains.

By providing comprehensive support and facilitating skill enhancement, the ‘PM Vishwakarma’ scheme aims to empower these artisans, fostering socio-economic growth and enhancing their overall quality of life.

What is the Eligibility of PM Vishwakarma Yojana?

• Artisan or craftsperson engaged in traditional family-based trades.
• Minimum age: 18 years at the time of registration.
• Currently engaged in the specified trade, with no previous loans under similar schemes in the last 5 years, except for MUDRA and SVANidhi beneficiaries who have fully repaid.
• Registration and benefits limited to one family member, defined as the spouse and unmarried children.
• Government employees and their family members are ineligible.

Which documents are required for Vishwakarma Yojana?

• Aadhaar card
• Mobile number
• Bank details
  If a beneficiary does not have a bank account, he/she will be first required to open a bank account for which handholding will be done by CSC.
• Ration card (or Aadhaar numbers of all family members if ration card is unavailable)

Additional documents or information may be requested as per prescribed guidelines.

Registration Process for PM Vishwakarma:

1. Applications for registration will be accepted through Common Service Centres (CSCs) or an open online portal, authenticated via Aadhaar biometrics on the PM Vishwakarma website.
2. The portal will have integration with various government platforms, including Skill India Digital, through APIs for seamless information flow.
3. A multilingual helpline on the portal ensures that information is accessible to all, breaking language barriers.
4. Beneficiaries can apply directly or with the assistance of CSCs, Village Level Entrepreneurs (VLEs), or Enumerators.
5. CSCs will provide support to assess beneficiaries’ needs and guide them in choosing the Scheme’s available benefits.
6. If a beneficiary doesn’t have a bank account, CSCs will assist in opening one, and Aadhaar-seeded bank details will be required for receiving monetary benefits.
7. Aadhaar authentication is mandatory at all stages, conducted via biometrics by CSCs.
8. The portal will also facilitate registration under the Udyam Assist Portal for Informal Micro Enterprises without PAN.
9. Encouragement for beneficiaries to onboard on the GeM Portal, where their products can be procured through public procurement.
10. A three-step verification process, including Aadhaar-based biometric authentication, ensures secure registration under PM Vishwakarma.
11. Notifications regarding incentive disbursement will be sent to beneficiaries through SMS.

Three-Tier Verification and Approval Process for Beneficiary Registration:

Stage 1: Verification at Gram Panchayat or ULB Level

1. Initial screening of artisans and craftspeople registering under PM Vishwakarma will be conducted at the Gram Panchayat level by the Head of Gram Panchayat, Village Council Chairman, or Urban Local Body’s (ULB) Executive Head/Administrator.
2. The Gram Panchayat Head may utilize the services of Gram Sevak/Panchayat Secretary for verifying beneficiary details. This includes confirming the beneficiary’s traditional engagement in their trade as self-employed.
3. Verification will include cross-checking family details to ensure that only one eligible person per family is registered. The same applies to the Executive Head of ULBs.
4. The details collected by Village Level Entrepreneurs (VLEs) will be certified by the Gram Panchayat Head in villages or the Executive Head of ULBs.

Stage 2: Vetting and Recommendation by the District Implementation Committee

1. Verified registration details from Gram Panchayat or Executive Head will be electronically forwarded to the District Implementation Committee for the second-level verification.
2. The District Implementation Committee will conduct thorough vetting and recommend applications submitted by beneficiaries.

Stage 3: Approval by the Screening Committee

1. Final registration approval will be granted by the Screening Committee, ensuring due diligence and considering recommendations from the District Implementation Committee.
2. The Screening Committee, chaired by an officer from the Office of DC-MSME field formation, will include members such as the State Lead Bank Manager and representatives of MSDE in each State/Union Territory, overseeing the registration process.

Following are the terms of reference of the Screening Committee:

1. Approving beneficiary registrations under PM Vishwakarma, verifying their eligibility.
2. Ensuring the enrollment and verification process proceeds promptly.
3. Registering eligible beneficiaries in trades covered by PM Vishwakarma.
4. Recommending necessary corrective actions, if needed, to enhance the Scheme’s efficiency and implementation.

Process Flow for availing benefits under the Scheme

PM Vishwakarma Certificate and ID Card:

Under PM Vishwakarma, registered artisans and craftspeople will receive a Digital ID, PM Vishwakarma Digital Certificate, and PM Vishwakarma ID Card. This certificate will officially recognize them as Vishwakarmas, granting access to all Scheme benefits.

Skill Upgradation:

The Ministry of Skill Development and Entrepreneurship (MSDE) manages skill assessment, training, and certification, focusing on skill upgradation within the MSDE ecosystem and affiliated institutions.

Training occurs at vocational centers and nearby locations for convenience. Skilled artisans also serve as master trainers, preserving the Guru-Shishya tradition.

Beneficiaries receive toolkit incentives, followed by Basic Training. After successful completion, they get a training stipend, paid through Direct Benefit Transfer.

Advanced Training follows Basic Training, overseen by the Skill Upgradation Committee, ensuring training quality.

This structure empowers Vishwakarmas by enhancing their skills and providing essential recognition and benefits.

Toolkit Incentive:

Those who have successfully undergone Skill Assessment within the Skill Upgradation part of the Scheme will qualify for a toolkit incentive of up to Rs. 15,000. This incentive will be provided through e-RUPI or e-vouchers, enabling beneficiaries to purchase enhanced tools relevant to their respective occupations from designated centers.

Credit Support:

Enterprise Development Loans:

• Beneficiaries will receive ‘Enterprise Development Loans’ from their preferred Bank or Financial Institution through the PM Vishwakarma portal upon application.
• No collateral is required to obtain loans under the PM Vishwakarma Scheme.
• PAN requirements will follow banking norms for credit facilities.
• Credit information reports are necessary for those with a credit history to access credit benefits, preventing defaulters from availing credit under the Scheme.
• Beneficiaries without a credit history will not be excluded from obtaining credit, and no credit information report will be demanded from them.
• No prepayment penalty will be applied to artisans and craftspeople after six months of loan disbursement.
• Loan disbursement will be linked to specific training milestones, with the first Loan Tranche available after the completion of 5-7 days of Basic Training provided by MSDE.
• Skilled beneficiaries can access the second Loan Tranche if they have repaid the first tranche loan, maintained a standard loan account, adopted digital transactions in their business, or completed Advanced Training.
• The second loan will not be granted until six months after the disbursement of the first tranche loan.

Concessional Interest and Interest Subvention:

• Beneficiaries will be charged a fixed interest rate of 5%.
• The MoMSME will provide interest subvention up to 8% to banks upfront.
• The subvention cap of 8% can be revised by the Credit Oversight Committee, chaired by the Secretary of DFS, based on prevailing interest rates.
• Banks must submit quarterly audited reconciliation certificates to SIDBI or the agency managing the escrow account for interest subvention claims.
• MoMSME will release interest subvention to banks in advance through various mechanisms in consultation with DFS.
• To ensure effective monitoring, banks will maintain interest data in Customer Induced Format instead of System Induced Format.
• Lenders must submit monthly returns for interest subvention for each financial year.
• Subvention will only be provided for Standard (non-NPA per RBI guidelines) accounts on respective claim dates and for months when the account remains Standard.

Incentive for Digital Transaction:

• Beneficiaries receive incentives for digital transactions via UPI.
• UPI IDs are collected during registration.
• QR Codes and UPI IDs are provided for free to those without them via DPAs like Paytm and BharatPe.
• Integration with recognized Digital Payments Platforms is planned, including NPCI (for BHIM) and UPI.
• UPI IDs are shared with NPCI and digital transaction partners for incentive calculations.
• Mobile numbers and UPI IDs are used to track transaction data for incentives.
• Incentive amounts are transferred to beneficiaries’ Aadhaar-linked bank accounts through DBT.

NCM offers marketing support to beneficiaries selected through the PM Vishwakarma portal:

• Establishing physical and online product presence.
• Listing products on e-commerce platforms.
• Building brands.
• Connecting artisans with exporters and traders.
• Facilitating participation in trade fairs.
• Ensuring product quality.
• Providing packaging and common facilities.
• Offering design and development assistance.
• Identifying government infrastructure for retail space.

NCM reimburses costs for quality certifications, e-commerce onboarding, and trade fair participation. It also supports Artisan Producer Organizations and forms a Committee for Standardization and Quality Control.

Financial Provisions:

The initial budgetary outlay under the Scheme will be Rs 13,000 crore.