Govt to provide up to 8% interest subsidy for Vishwakarma Yojana: FM
During the launch event of the Vishwakarma Yojana, Finance Minister Nirmala Sitharaman unveiled a crucial component of the program. She announced that the government would offer a subsidy of up to 8 percent on loans provided to artisans. This subsidy is designed to alleviate the financial challenges faced by artisans and promote the uptake of loans to support their businesses or craft-related endeavors.
Additionally, she highlighted that the government had already allocated a substantial sum of Rs 13,000 crore in the Budget for the fiscal year 2023-24 to fund this initiative, demonstrating the government’s commitment to supporting the artisan community and fostering economic growth in this sector.
Finance Minister Nirmala Sitharaman shared comprehensive details about the Vishwakarma Yojana during its launch. The scheme is poised to provide crucial support to artisans in various sectors, with the following key aspects:
Under this initiative, artisans will have access to collateral-free loans, which means they won’t need to put up any assets or property as security for the loans they seek. This feature is intended to reduce the financial burden and risks associated with borrowing.
Furthermore, the Vishwakarma Yojana offers loans at an exceptionally low-interest rate of just 5 percent. This attractive interest rate aims to make borrowing highly affordable for artisans, enabling them to invest in their businesses or craft-related activities with minimal financial strain.
The scheme covers a wide range of 18 activities, including carpentry, goldsmithing, blacksmithing, masonry, stone sculpture, barbering, and boatmaking, among others. This extensive coverage ensures that artisans from diverse fields can benefit from the program.
To facilitate these loans, the government is prepared to provide loans of up to Rs 3 lakh to eligible artisans. This financial support can prove to be a significant boost for artisans looking to expand their businesses, upgrade their equipment, or enhance their skills.
Overall, the Vishwakarma Yojana represents a comprehensive effort by the government to empower and uplift artisans across various sectors, promoting economic growth and skill development in this important segment of the workforce.
Finance Minister Nirmala Sitharaman provided further insights into the Vishwakarma Yojana, detailing its phased approach and comprehensive support:
Phased Loan Disbursement: In the initial phase, beneficiaries of the scheme will be eligible for a loan of up to Rs 1 lakh. After successfully adhering to the repayment schedule for 18 months, they will become eligible for an additional loan of up to Rs 2 lakh. This phased disbursement ensures that artisans can access financial support in a structured manner, starting with a smaller loan amount and potentially scaling up their businesses with the larger loan upon successful repayment.
Holistic Support Components: The Vishwakarma Yojana goes beyond just financial assistance. It encompasses a wide range of components to empower and uplift artisans comprehensively. These components include:
– Advanced Skill Training: Artisans will have access to advanced skill training, enabling them to enhance their craft and stay competitive in the market.
– Modern Digital Techniques: Knowledge and training in modern digital techniques will be provided, equipping artisans with the tools and skills needed to adapt to the digital age.
– Efficient Green Technologies: The scheme promotes the adoption of efficient green technologies, supporting sustainable practices within the artisan community.
– Brand Promotion: Artisans will receive assistance in promoting their brands, helping them build recognition and customer trust.
– Linkage with Local and Global Markets: The program will facilitate connections between artisans and both local and global markets, expanding their reach and opportunities.
– Digital Payments: Promoting digital payments will enable artisans to conduct transactions more conveniently and securely.
– Social Security: The Vishwakarma Yojana also addresses social security concerns, providing a safety net for artisans in times of need.
This multifaceted approach underscores the government’s commitment to not only provide financial assistance but also equip artisans with the necessary skills, technologies, and resources to thrive in a rapidly evolving economic landscape, both locally and globally.
Finance Minister Nirmala Sitharaman provided further details about the support and incentives under the Vishwakarma Yojana:
Skill Training: Each beneficiary of the scheme will receive skill training for a duration of 5 days. During this training period, they will receive a daily stipend of Rs 500. This stipend is aimed at supporting artisans while they acquire new skills or enhance their existing ones, ensuring they have some financial stability during the training period.
Identification Process: The scheme will employ a rigorous three-layer approach to identify beneficiaries. This approach is designed to ensure that the benefits of the program reach the intended recipients effectively and transparently.
Toolkit Incentive: To aid artisans in their craft and businesses, a grant of Rs 15,000 will be provided as a toolkit incentive. This financial support can be instrumental in helping artisans acquire the necessary tools and equipment to improve their work and productivity.
Digital Transaction Incentive: The scheme encourages digital transactions by offering incentives. Beneficiaries will receive Rs 1 per transaction for up to 100 transactions monthly. This incentive aims to promote digital financial inclusion and streamline transactions for artisans.
Inclusivity: The Vishwakarma Yojana is designed with a focus on inclusivity, with the goal of benefiting various marginalized and vulnerable groups, including Scheduled Castes, Scheduled Tribes, Other Backward Classes (OBCs), women, and people belonging to weaker sections of society. By providing targeted support and incentives, the scheme aims to uplift these communities and promote economic empowerment among them.
In summary, the Vishwakarma Yojana not only offers financial support but also provides skill development opportunities, tools, and incentives for digital transactions. It prioritizes inclusivity by targeting support to disadvantaged groups, ultimately contributing to their economic growth and self-reliance.
