Government launches ‘Internship Scheme’ for Youth in top 500 companies, monthly stipend and one-time allowance; check details
Finance Minister Nirmala Sitharaman, announced a comprehensive internship scheme aimed at empowering one crore youths by placing them in the top 500 companies across the country in the next 5 years. The scheme, announced by the finance minister while presenting the Union Budget 2024-25 in Parliament, is designed to offer young individuals aged 21-24 invaluable exposure to business environments over 12 months.
Enabling Youth to Acquire Business Experience
Under this initiative, the interns will receive a monthly allowance of Rs 5,000, along with a one-time assistance of Rs 6,000 to help with initial expenses. The scheme is structured in two phases: the first phase will span two years, followed by a more extensive three-year second phase. This phased approach ensures the scheme’s sustainability and allows for adjustments based on initial feedback and outcomes.
Scheme Linked to Companies’ CSR Budget
The innovative scheme mandates that the companies cover the training expenses and 10% of the internship costs using their corporate social responsibility (CSR) funds. This not only ensures that the interns receive quality training but also promotes a culture of corporate involvement in social development. The government has already started talk with various companies willing to participate in this program. It is a win-win situation for all stakeholders because in all probability, the Ministry of Corporate Affairs will let companies claim the amount spent in this scheme as CSR expenditure.
(Every company in every financial year must spend at least 2% of its average net profits made during the immediately preceding three financial years as per its CSR policy. If the company has not completed three financial years since its incorporation, it must spend 2% of its average net profits made during the immediately preceding financial years as per its CSR policy.)
The provisions of CSR applies to every company fulfiing any of the following conditions in the preceding financial year:
- Net profit of more than Rs.5 crore
- Net worth of more than Rs.500 crore
- Turnover of more than Rs.1000 crore
Source: Cleartax
Application and Selection Process
Interested candidates will be able to apply through an online portal, with detailed instructions to be announced soon. The scheme is particularly targeted at youth who are neither employed nor engaged in full-time education, to provide them with a much-needed to gain work experience and industrial exposure to improve their employability.
The Deccan Post will provide all the details as and when the government shares information on application and selection process.
Officials said that the nitty gritty of the scheme will be prepared by the Ministry after the consultation process is over.
Selection will be based on objective criteria with a focus on candidates from lower employability backgrounds, ensuring that the opportunities reach those who need them the most. However, participation is voluntary for companies, and the selection process will be fair and transparent.
Exclusions and Eligibility
To maintain the scheme’s focus on those who genuinely need the opportunity, certain exclusions apply. Candidates holding qualifications from premier institutions like IIT, IIM, or IISER are not eligible. Additionally, individuals whose family members hold government jobs or are income tax assessees will also be excluded from the scheme.
A Step Towards Inclusive Growth
This internship scheme marks a significant step towards inclusive growth and economic empowerment of the youth. By aligning the interests of the private sector with social responsibility, the government aims to create a robust support system that nurtures talent and bridges the employment gap.
