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Centralised Portal for Internship Scheme
Context:
The government is set to launch a centralised portal under the Prime Minister’s Internship Scheme, allowing companies to invite applications.
About the Portal and Prime Minister’s Internship Scheme:
- Introduction: First announced in the 2024-25 Union Budget, the scheme aims to equip 10 million young people with skills over five years by providing internship opportunities with the 500 largest companies based on corporate social responsibility (CSR) spending.
- These companies were selected based on their average CSR spending over the past three years.
Corporate Social Responsibility (CSR)
- It refers to the self-regulating business model that allows companies to be socially accountable to themselves, their stakeholders, and the public.
- Legal Framework: Companies Act, 2013: Effective from April 1, 2014, the Act mandates that companies meeting specific criteria must engage in CSR activities.
- Criteria for Applicability: Companies with a net worth of over INR 5 billion, Companies with an annual turnover exceeding INR 10 billion and Companies with a net profit of more than INR 50 million during any financial year.
- CSR Spending Requirement: Such companies are required to spend a minimum of 2% of their average net profits from the last three financial years on CSR activities.
- Schedule VII: This schedule outlines permissible CSR activities, including: Eradication of poverty and hunger, Promotion of education and healthcare, Environmental sustainability initiatives and Support for vulnerable groups and gender equality.
- Example: Contributions to the Swachh Bharat Kosh.
- Selection: The portal will automatically shortlist twice the number of candidates for each position based on “profiles, preferences, and eligibility.”
- Companies will then select candidates from this pool and issue offer letters.
- Eligibility: Applicants must be between 21 and 24 years old and have completed matriculation, with a focus on those with “lower employability.”
- Candidates from families with government jobs or those subject to income tax are ineligible, as are graduates from leading institutions like IITs, IIMs, and IISERs, along with Chartered Accountants and Certified Management Accountants.
- The scheme requires at least half of the 12-month internship to involve hands-on work experience rather than classroom training.
- Not Selected: Companies unable to absorb all interns are encouraged to coordinate with affiliates or supply chain partners for placements.
- Implementation: The program will be rolled out in two phases: training 3 million youths in the first two years, followed by 7 million in the next three.
- Stipends: Interns will receive a monthly stipend of ₹5,000, with ₹4,500 provided via direct benefit transfer from the government and ₹500 contributed by participating companies from their CSR funds.
- While companies can choose to pay interns more, any amount exceeding ₹500 must be fully borne by the company and will not count towards CSR spending.
- Certifications: Upon completion of the internship, companies are required to upload certifications to the Ministry of Corporate Affairs (MCA) portal, co-signed by the Nodal Officer and the intern’s supervisor, detailing the skills acquired.