Budget takes the jobs challenge head-on, companies can use CSR funds to hire interns

The first Budget of Modi 3.0 proposes a slew of short and long-term measures to create jobs, including a new internship programme that will allow corporations to use CSR funds to train interns.

Presenting the Budget on July 23, finance minister Nirmala Sitharaman said the government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to one crore youth in five years.

An internship allowance of Rs 5,000 a month along with a one-time assistance of Rs 6,000 will be provided. Companies can bear the training cost and 10 percent of the internship cost from their CSR funds, the minister said.

The youngster will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities.

The government will also provide a one-time wage assistance to all first-time employees joining the formal sector through Direct Benefit Transfer (DBT).  The transfer will be in three instalments of up to Rs 15,000 for those registered with EPFO, with a salary cap of ₹1 lakh per month. The move is expected to benefit around 2.1 crore youth.

For incentivising job creation in manufacturing, incentives will be given directly to employees and employers as per the EPFO contribution in the first four years of employment.

The model skill loan scheme will be revised to facilitate loans of up to Rs 7.5 lakh with a guarantee from a government-promoted fund.

For youth not been eligible for any benefits under government schemes, financial support for loans of up to Rs10 lakh in higher education in domestic institutions has been proposed.