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PM Vishwakarma.

Relevance

• GS Paper 2 Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions, and Bodies constituted for the protection and betterment of these vulnerable sections.
• Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
• Tags: # PM Vishwakarma #craftsman #Jobgrowth #currentaffairs #upsc.

Why in the News?

• Recently PM inaugurated Vishwakarma Scheme for significant section of the workforce of the Indian economy consists of artisans and craftsman who work with their hands and tools, are usually self-employed and are generally considered to be a part of the informal or unorganized sector of the economy.
• These traditional artisans and craftspeople are referred to as ‘Vishwakarmas’ and are engaged in occupations like Blacksmiths, Goldsmiths, Potters, Carpenters, Sculptors, etc. These skills or occupations are passed from generation-to-generation following a guru-shishya model of traditional training, both within the families and other informal groups of artisans and craftspeople.
• In the above backdrop, a new scheme, called ‘PM Vishwakarma’, 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 into the domestic and global value chains.

Objective

• To enable the recognition of artisans and craftspeople as Vishwakarma, making them eligible to avail all the benefits under the Scheme.
• To provide skill upgradation to hone their skills and make relevant and suitable training opportunities available to them.
• To provide support enhance their capability, productivity, and quality of products and services.
• To provide the beneficiaries an easy access to collateral free credit and reduce the cost of credit by providing interest subvention.
• To provide incentives for digital transactions to encourage digital empowerment of Vishwakarmas.
• To provide a platform for brand promotion and market linkages to help them access new opportunities for growth.

The scheme has six components

• Financial provision: The scheme is bolstered by a budgetary allocation of ₹13,000 crore, ensuring robust financial support for artisans and craftsmen.
• Recognition and ID: Artisans and craftspeople will be honored with the prestigious PM Vishwakarma certificate and an official ID card, validating their skills and contributions.
• Credit support: The scheme facilitates access to credit support, providing up to ₹1 lakh in the first tranche and ₹2 lakh in the second tranche, with a favorable interest rate of 5%.
• Skill Enhancement: To elevate their expertise, the scheme encompasses skill upgrading programs, encompassing both basic and advanced training. Participants will receive a daily stipend of ₹500 during training.
• Modern Tools and Incentives: Beneficiaries will receive financial support of up to ₹15,000 for acquiring modern tools, enhancing the quality and efficiency of their work.
• Digital Transactions and Marketing: Embracing modern practices, the scheme encourages digital transactions and offers marketing support, connecting artisans to broader markets.

Eligibility Criteria for PM Vishwakarma Scheme

• Occupation: Eligible individuals are artisans or craftspeople engaged in family-based traditional trades specified in Para 2.3. They work with tools and operate within the unorganized or informal sector, primarily in a self-employment capacity.
• Age Requirement: Beneficiaries must be a minimum of 18 years old at the time of registration.
• Loan History: Applicants should not have previously availed of loans under similar credit-based schemes from the Central Government or State Government for self-employment or business development within the past 5 years. However, those who have fully repaid their loans from schemes like PMEGP, PM SVANidhi, or MUDRA are eligible under PM Vishwakarma.
• Family Limitation: Registration and benefits under the Scheme are restricted to one member per family. A ‘family’ includes the husband, wife, and unmarried children.
• Exclusion: Individuals currently in government service and their family members are not eligible for participation in the Scheme.

PM Vishwakarma Certificate and ID Card

• After successful three-step verification and approval, artisans and craftspeople will be registered under this Scheme as Vishwakarmas.
• They will receive Digital ID, PM Vishwakarma Digital Certificate and PM Vishwakarma ID Card. The certificate will enable the applicants’ recognition as Vishwakarma, making them eligible to avail all the benefits under the Scheme.

Implementation Framework

• A three-tier Implementation Framework at the National, State and District levels, i.e. the National Steering Committee, State Monitoring Committee and District Implementation Committee, respectively, has been provided for implementation of PM Vishwakarma.
• The operational guidelines of the Scheme, containing the process flow from registration to disbursal of benefits along with the templates, will be formulated by the National Steering Committee and approved by MoMSME. An online monitoring system will be put in place.

Coordination with Ministries

• The implementation of the Scheme will be done in coordination with Ministry of Electronics and Information Technology, Ministry of Labour & Employment, Ministry of Panchayati Raj, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Housing and Urban Affairs, Ministry of Information and Broadcasting, Department for Promotion of Industry and Internal Trade, Department of Posts, Ministry of Tourism, Ministry of Cooperation and Ministry of Agriculture, Government of India.

Challenges of the PM Vishwakarma Scheme:

• Implementation: The scheme is complex and involves a number of stakeholders, including the government, artisans and craftspeople, and financial institutions. It will be important to ensure that the scheme is implemented effectively and efficiently.
• Awareness: Many artisans and craftspeople may not be aware of the scheme or may not know how to access it. It will be important to raise awareness of the scheme and to make it easy for artisans and craftspeople to access its benefits.
• Funding: The scheme has a budget of ₹13,000 crore for five years. However, it is estimated that the total requirement is much higher. It will be important to ensure that the scheme is adequately funded in order to meet the needs of all eligible artisans and craftspeople.
• Market access: Many artisans and craftspeople struggle to access the market. The scheme includes a marketing support component, but it is important to ensure that this component is effective in helping artisans and craftspeople to reach a wider market and to increase their sales.
• Sustainability: It is important to ensure that the scheme is sustainable in the long term. This means that the government should work with artisans and craftspeople to develop businesses that are viable and profitable.
• In addition to these challenges, there are also a number of other potential challenges, such as corruption and bureaucratic delays. It is important to address these challenges in order to ensure the success of the scheme.

Despite these challenges, the PM Vishwakarma Scheme is a welcome step by the government to support artisans and craftspeople in India. The scheme has the potential to make a significant impact on the lives of millions of people and to contribute to the growth of the Indian economy.

Sources: The Hindu, Indian Express, Livemint. 

Mains Question

Assess the potential impact of the PM Vishwakarma scheme on the Indian economy and the livelihoods of artisans and craftspeople. What measures should be taken to ensure the scheme’s success and reach to a wider audience? 250words.