₹1 lakh loan at 5% interest: What is PM Vishwakarma Scheme

A day after PM Modi announced the PM Vishwakarma Scheme for traditional workers from Red Fort, Union Cabinet approved the outlay of ₹13,000 for the scheme.

Published on: Aug 16, 2023, 17:02:10 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Union Cabinet on Wednesday approved the Pradhan Mantri Vishwakarma Scheme and the budgetary outlay of ₹13,000 crore, a day after Prime Minister Narendra Modi made the announcement of its launch during his Independence Day address.

A cobbler fixing shoes on a roadside. (Wikimedia Commons)

Along with providing support to people with traditional skills, the scheme is aimed at giving loans on liberal terms to the local workers who drive majority of the rural economy. Union minister Ashwini Vaishnaw, during the launch of the scheme, said it will benefit around 30 lakh craftsmen families.

Also read: Centre announces 10K e-buses, subsidised loans for craftsmen

According to an official statement, the PM Vishwakarma Scheme will cover 18 traditional trades in the first instance.

“The scheme aims to strengthen and nurture the 'Guru-Shishya parampara' or family-based practice of traditional skills by artisans and craftsmen working with their hands and tools,” the statement said.

The scheme will have a financial outlay of ₹13,000 crore. In its first instance, as many as 18 rural traders will be covered under this scheme including carpenter, boat maker, blacksmith, locksmith, potter, goldsmith, barber, tailor, mason, garland maker among others.
Artisans and craftspeople will be provided a recognition through PM Vishwakarma certificate and ID card.
The scheme has a provision of credit support of up to ₹1 lakh (first tranche) and ₹2 lakh (second tranche) with a concessional interest rate of 5%.
It also has a provision to provide skill upgradation, incentive for toolkit as well as digital transactions and marketing support.
Skilling programme will take place at both basic and advanced types. Participants will get a stipend of ₹500 per day while undergoing training.
Beneficiaries will also receive up to ₹15,000 to buy modern tools.
The scheme also aims at improving the quality, as well as the reach of products and services of artisans and craftsmen and to ensure that Vishwakarmas are integrated with the domestic and global value chains

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest India News, breaking headlines and real-time updates from across the country. Stay informed about politics, government policies, crime, weather and major national developments.