Modi Government Preparing for Major Changes in Student-Benefiting Scheme
NEW DELHI: The central government is gearing up to expand the scope of the Prime Minister’s Internship Scheme. Until now, the scheme included only the top 500 companies in the country, but the government is now planning to include all companies that operate under Corporate Social Responsibility (CSR) initiatives. This expansion aims to provide internship opportunities to a larger number of young people. The ministry is currently preparing a proposal for the Cabinet regarding these changes.
The scheme has been implemented as a pilot project so far. In the first phase, 1.27 lakh internship proposals were offered, and in the second phase, 1.15 lakh proposals were made available. As of December 2024, approximately 28,000 students had accepted these offers, with around 8,700 students having already started their internships.
Over 24,000 Companies Involved in CSR
According to the CSR portal, 24,392 companies were engaged in Corporate Social Responsibility activities in the financial year 2022-23. Currently, only the top 500 companies are eligible to participate in the pilot program under the Prime Minister’s Internship Scheme, based on their average CSR expenditure over the past three years.
These companies can also collaborate with their suppliers, customers, and vendors to participate in the Prime Minister’s Internship Scheme.2 For now, the government has made the scheme voluntary, meaning companies can adopt it at their discretion. Other companies wishing to become partners in this project need to obtain permission from the Ministry of Corporate Affairs.
Potential Changes to the Scheme
The age limit for joining this scheme is also likely to be reduced. Currently, the scheme is open to young people aged 21 to 24 years, but now, young individuals graduating from Industrial Training Institutes (ITIs) and Polytechnics will also be given opportunities. This will allow a greater number of young people to benefit from skill development. Applications for the second phase of the scheme were invited until April 2025.
What is the Scheme?
The Prime Minister’s Internship Scheme aims to provide students with training (internship) opportunities in companies, allowing them to gain work experience alongside their studies.3 This will make it easier for them to secure jobs in the future. Under this scheme, companies hire young people for a certain period and also provide them with a stipend. The sectors where students get opportunities include oil, gas, energy, travel, hospitality, automotive, and banking.
Benefits of the Scheme
- Students gain practical work experience alongside their studies.
- A monthly stipend of ₹5,000 is provided.
- A one-time financial assistance of ₹6,000 is given.
- Coverage for life insurance and accidental insurance is provided.
- Some companies also offer additional insurance.
