The finance minister (FM) made a significant announcement in her recent budget speech about a new scheme aimed at providing internship opportunities to youth. Below are the key details of the proposal:
Scheme overview:
- Objective: To offer internship opportunities in 500 top companies to one crore youth over five years
- Internship duration: 12 months
- Internship allowance: INR5,000 per month, with a one-time assistance of INR6,000
- Company contribution: Training costs and 10% of the internship allowance, to be funded through Corporate Social Responsibility (CSR) initiatives
Proposal details:
A. Applicability:
Target companies: Top 500 companies (participation is not mandatory)
B. Eligibility criteria:
Candidates: Youth aged 21-24, not currently employed or engaged in full-time education
C. Financial aspects:
Allowance/stipend: INR6,000 per month to be provided by companies
CSR expenditure claim: Companies can claim training costs and 10% of the internship allowance, including administrative costs, as CSR expenditure
D. Additional conditions:
- Companies will select interns from a government-provided shortlist, prioritizing candidates with lower employability
- Certain candidates will be deemed ineligible, such as those with qualifications from IIT, IIM, IISER, or professional certifications like CA, CMA, etc., or those with family members who are income tax assesses or government employees
- Companies must provide practical work experience related to their core business activities
- At least 50% of the internship should involve hands-on experience in a job environment, as opposed to classroom learning
- If a company cannot provide direct experience, it should arrange for internships with partners in its supply chain or with other companies/institutions within its group
- The scheme will be coordinated with State Government initiatives where applicable
- The scheme will be implemented in two phases: Phase 1 for two years, followed by Phase 2 for three years
Note: This proposal, as referenced in the budget speech, is not part of the finance bill. Formal provisions will be notified by the Central Government through subsequent amendments or circulars.
