Prime Minister Internship Scheme funding model unveiled; check details

The Government of India, in a bid to enhance youth employability and industry exposure, has introduced a detailed funding model for the newly announced Prime Minister’s Internship Scheme, which was unveiled during the Budget 2024-25. This ambitious initiative aims to provide internship opportunities for one crore young Indians in the top 500 companies over a span of five years.

Financial Structure of the Scheme

A key feature of the program is the financial assistance provided to the interns. Each intern will receive a monthly stipend of Rs. 5,000, of which Rs. 4,500 will be borne by the government, according to sources. Partner companies are required to contribute Rs. 500 per month from their Corporate Social Responsibility (CSR) funds, marking a significant shift in the funding responsibilities. This model allows companies to participate without bearing a substantial financial burden, while ensuring that interns receive adequate financial support during their internships.

Additionally, the Ministry of Corporate Affairs (MCA) will provide a one-time grant of Rs. 6,000 to cover incidental expenses incurred by the interns upon joining their workplace, sources added. This grant is designed to ease the transition for interns, covering costs such as travel or relocation.

Corporate Participation

Participation in the scheme is voluntary, but top companies have been selected based on their average CSR expenditure over the past three years. Apart from the designated 500 companies, any other eligible firms, banks, or financial institutions can also participate, subject to approval from the MCA. The scheme also allows companies to partner with entities in their value chain, such as suppliers or vendors, to offer internships. This flexible approach ensures that the program reaches a wide array of industries and sectors.

Companies will also have the discretion to provide additional financial support beyond the mandated Rs. 500 if they wish to do so from their own funds.

Pilot Project Launch

Sources have revealed that the first phase of the program will be rolled out as a pilot project on October 3, 2024. An online portal, developed by the MCA, will serve as a centralized hub for managing the entire internship lifecycle. This portal, www.pminternship.mca.gov.in, is already open for companies to post internship opportunities, while candidates can start registering by mid-October.