Internship Programme – With a budgetary focus and provisions on sustainable development and growth along with jobs, skills and employment, the Central Government of India is going to launch an internship scheme to provide 1 crore internship opportunities in top 500 companies over the next five years. The Union Finance Minister of India announced the internship scheme during the presentation of the Union Budget 2024-25. The announcement of budgetary provision for a package on generating employment opportunities and skilling the youth and providing on-the-job training with internship opportunities to 1 crore young people in India’s top 500 companies has been wholeheartedly welcomed by both the industries and the academia.
Thought Process Behind the Internship Programme!
Section 135 of the Companies Act 2013 makes it mandatory for companies to spend 2% of their average net turnover and profitability for the past three years on corporate social responsibility (CSR) activities. This provision along with budgetary intervention is going to become a great enabler. Proposed creation of employment opportunities of about 4.1 crore youth over the next five years, skilling the youth, focus on the Micro, Small & Medium Enterprises (MSME), and middle class are among the key priorities responsible behind the thought process.
Hailing the initiative behind the internship scheme, National Association of Software and Service Companies (NASSCOM) president Debjani Ghosh, and chairman of the Board of Governors of IIT Roorkee and IIT Hyderabad B.V.R. Mohan Reddy welcomed the move and added that it is going to create a win-win situation for both job seekers and employment providers.
Internship Programme – Budgetary Intervention and Benefits!
The budgetary intervention in the form of allocation of ₹2 lakh crore makes the internship programme sustainable and productive in the long run. Similarly, the proposed allocation of ₹1.48 crore for skilling youth is going to work as an accelerating factor for generating job opportunities through the internship program. Upgradation of 1,000 industrial training institutes followed with skilling of 20 lakh youth over a five-year period will help generate a sustainable talent pool.
Internship schemes for one crore youth in top 500 companies over the next five years will give exposure to real life environment and provide an internship allowance of ₹5,000 per month along with a one-time assistance of ₹6,000. A one-time wage assistance by the government would be provided to all first time employees in all sectors. The incentive for first-timers would be provided through Direct Benefit Transfer (DBT) mode.
The companies facilitating the internship programme will provide training and bear 10% of training cost from their respective Corporate Social Responsibility (CSR) funds. The internship opportunity will provide the interns with 12 months of real-life experience in a business environment, while giving them exposure to varied professions and employment opportunities.
Internship Programme – Details in a Nutshell!
Let us consider the internship program details in a nutshell.
- The internship scheme aims to skill one crore youth in five years, targeting 21 to 24 years old individuals who are not yet employed or pursuing full-time education.
- The internship programme will last 12 months, with at least half of the time spent on actual working experience rather than classroom learning.
- The organisations unable to provide direct working experience must partner with entities in their supply chain or related institutions.
- The Central Government will subsidise the internship scheme with ₹54,000 for monthly allowances and ₹6,000 for incidentals.
- The candidates from prestigious institutions such as IIT, IIM, IISER, CA, and CMA are not eligible.
- Internship scheme applicants must not have any family members who are government employees or income tax assessees.
- The internship scheme will last for 12 months.
- The organisations are expected to provide interns with hands-on working experience in relevant skills and at least 50% of the internship period should involve work in a job environment rather than classroom instruction.
- The internship scheme offers a monthly internship allowance of ₹5,000 which totals ₹60,000 over 12 months, along with an additional ₹6,000 for incidentals. The government will cover ₹54,000 of the monthly allowance and ₹6,000 for incidentals.
- The organisations will be responsible for ₹6,000 i.e. 10% of the internship allowance and the training costs, which can be funded through their CSR budgets. The CSR funds can also cover reasonable administrative expenses.
Last but not the least, similar schemes have been implemented in the past as well and therefore any sort of confusion on the nature of schemes as an apprenticeship or an internship scheme must be dispelled. Figuring out sustainable ways to manage the influx of internees into companies while realising the importance of expanded opportunities both for providers and seekers will help create a win-win ecosystem especially for the potential advantages the internship schemes promises to offer.
Internship Programme – FAQs
What is the primary objective of the internship scheme?
The primary objective of the internship scheme is to skill one crore youth in five years. It targets individuals aged 21 to 24 who are not yet employed or pursuing full-time education.
How long will the internship programme last, and what is the minimum requirement for actual working experience?
The internship programme will last for 12 months. At least half of this period must be spent on actual working experience rather than classroom learning.
What should organisations do if they cannot provide direct working experience to internship applicants?
If organisations cannot provide direct working experience to internship applicants, they must partner with entities in their supply chain or related institutions to ensure the interns receive the necessary hands-on experience.
Who are not eligible to apply under the internship scheme?
The candidates from prestigious institutions such as IIT, IIM, IISER, CA, and CMA are not eligible to apply under the internship scheme. Additionally, applicants must not have any family members who are government employees or income tax assessees.
What financial support does the Central Government provide for the internship scheme?
The Central Government will subsidise the internship scheme with ₹54,000 for monthly allowances and ₹6,000 for incidentals, covering a significant portion of the cost for internship.
What is the total amount an intern receives as an allowance over the 12-month internship period?
An intern receives a total of ₹66,000 over the 12-month period, comprising a monthly internship allowance of ₹5,000 (totaling ₹60,000) and an additional ₹6,000 for incidentals.
How are the organisations expected to fund the portion of the internship allowance not covered by the government?
The organisations are responsible for ₹6,000, which is 10% of the internship allowance, along with the training costs. These expenses can be funded through their Corporate Social Responsibility (CSR) budgets, which can also cover reasonable administrative expenses.
Who announced the internship scheme?
The Union Finance Minister Nirmala Sitharaman announced the internship scheme during the presentation of the budget 2024 while stressing on the need for a holistic package on employment and skilling programmes.
What does the internship scheme provide?
The internship program promises to offer internship opportunities for 1 crore students as interns in the top 500 companies over the next five years. Interns under this scheme will receive a monthly allowance of ₹5,000 and a one-time allowance of ₹6,000. The internship period is supposed to last for 12 months.
What were the additional announcements under this employment and skill program?
The administration has also suggested generating employment for about 41 million young people in the coming five years, with a budget of ₹2 trillion, and allocated ₹14.8 billion for training 2 million young people over a span of five years.
How should I apply for it and what is the eligibility