All you need to know about PM’s internship plan announced in Budget 2024

Companies will be expected to bear the training cost and 10 percent of the internship cost from their corporate social responsibility (CSR) funds.

As the fifth scheme under the Prime Minister’s package, Finance Minister Nirmala Sitharaman on July 23 said the government will launch a comprehensive scheme for providing internship opportunities in “500 top companies” for one crore youth in five years.

Students will gain exposure for 12 months to real-life business environments, varied professions and employment opportunities. An internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000 will also be provided.

While phase 1 of the scheme will be for two years followed by phase 2 for three years.

Companies will be expected to bear the training cost and 10 percent of the internship cost from their corporate social responsibility (CSR) funds.

Applications for the internship will be made through an online portal whose details are yet to be announced.

Who is eligible?

The scheme is only applicable to those who are not employed or engaged in full-time education and are aged between 21 and 24 years.

Companies providing internships will need to select from shortlisting based on objective criteria with emphasis on those with lower employability.

The participation of companies is voluntary.

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Who is not eligible?

According to the indicative list shared by the government, candidates with Indian Institutes of Technology (IIT), Indian Institutes of Management (IIM), Indian Institutes of Science Education and Research (IISER), CA, CMA, etc as qualifications are not eligible for the internship.

Candidates with a member of the family in government job or an income tax assessee are also not eligible.

What more?

The company providing the internship opportunity is expected to provide the person with actual working experience in a skill in which the firm is directly involved in.

At least half the time should be in actual working experience/job environment not in the classroom.  In case the company cannot directly do so, it must tie up with companies in its forward and backward supply chain (suppliers or customers) or other companies/institutions in its group or otherwise.