The Ministry of Corporate Affairs (MCA) recently tabled data in Parliament regarding the pilot phase of the PM Internship Scheme. Despite exceeding the target for internship offers, the scheme has witnessed low acceptance rates and high attrition among the youth.
1. About:
- Origin: Announced in the Union Budget 2024.
- Objective: To provide internship opportunities to 1 crore youth in the top 500 companies over the next five years.
- Current Target: The pilot project aimed to provide 1.25 lakh opportunities in FY 2024-25.
- Nodal Ministry: Ministry of Corporate Affairs (MCA).
2. How is the Financial Architecture Structured?
- Stipend: Total ₹5,000 per month.
- Government Share: ₹4,500 (via Direct Benefit Transfer).
- Corporate Share: ₹500 (funded through Corporate Social Responsibility – CSR funds).
- Incidental Grant: A one-time grant of ₹6,000 provided upon enrollment.
- Social Security: Insurance coverage under PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana.
3. Eligibility :
- Age Limit: Candidates aged between 21 and 24 years.
- Educational Qualification:
- Must have passed High School (Class 10) or above.
- Exclusions: Graduates from premier institutes (IITs, IIMs, IISERs) and those with professional qualifications (CA, CMA, CS) are not eligible.
- Employment Status: Candidate must not be in full-time employment or engaged in full-time education.
- Economic Criteria:
- Family income must not exceed ₹8 lakh per annum.
- Families with government employees are ineligible.
4. What does the Pilot Data Indicate?
- Supply vs. Demand: While companies offered 1.65 lakh positions (exceeding the 1.25 lakh target), only 20.2% of these offers were accepted by candidates.
- Attrition: Approximately 20% of candidates who accepted the offers dropped out before completion.
- Key Hurdles: Location constraints, role mismatch, and duration of the internship were cited as primary reasons for the low uptake.
- Budget Utilization: Consequently, the budget estimate for the pilot was revised downward from ₹840 crore to ₹380 crore for FY 24-25.
