The Ministry of Corporate Affairs (MCA) is likely to bring out a list of 500 companies that can participate in the Centre’s internship scheme, based on the average annual corporate social responsibility (CSR) expenditure of the previous three years, according to people in the know.
The scheme was announced by Union Finance Minister Nirmala Sitharaman during the Budget 2024-25.
The MCA will operationalise the internship scheme portal by the end of this month, when the companies would submit the details of the internship positions available with them, sources said.
Applications for the scheme will go through the online portal.
Companies, sources said, would not have direct access to the candidates. Once the candidates have applied for these internships, an MCA panel will select and forward the applications to the companies — two for every single position.
The companies can then select or reject the candidates based on their requirements, sources said.
“Work on the scheme is in full swing. The companies are being contacted. It is a win-win scheme for both companies and the government. Companies want to create talent and the cost is being offset by the government,” the source said.
The MCA did not respond to an email query sent on this matter until the time of going to press.
From FY19 to FY22, Reliance Industries had been the top CSR spender. In 2022-23, Reliance Industries, with an expenditure of Rs 743.4 crore, slipped to third spot, following HDFC Bank, and Tata Consultancy Services. ICICI Bank and Tata Steel are also among the top CSR spenders in the country.
The government aims to skill 10 million youths in India’s top companies in five years through the internship scheme. The youth will gain exposure for 12 months to a real-life business environment, varied professions, and employment opportunities.
The Centre would provide an internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000.
Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds.
The scheme is voluntary for companies. Companies can take up this scheme voluntarily.
The Companies Act, however, makes corporate social responsibility mandatory and statutory, making India one of the few countries to do so.
Internships will be offered through suppliers or value-chain partners of the top 500 companies. Unlike apprenticeships, there is no obligation for companies to hire interns permanently. The scheme aims to encourage companies to take on individuals they might not typically employ without the subsidy.
This scheme, the finance ministry has said, aims to bridge the gap between academic knowledge and industry requirements in order to align with broader goals of improving employability, stimulating economic growth, and promoting sustainable development.
Getting ready
> 10 million youths — aged between 21 and 24 — to be skilled by top companies in five years
> Centre to provide allowance of Rs 5,000 per month for a 12-month internship
> MCA panel to select and forward applications to companies — two for every single position
> The companies can select or reject the candidates based on their requirements
> Participation by companies is voluntary
First Published: Sep 20 2024 | 9:55 PM IST
