Top CSR Spenders to Lead PM’s Internship Scheme: Boosting Youth Employment

Introduction: A Landmark Internship Initiative

The Government of India is gearing up to launch an ambitious internship scheme aimed at providing job opportunities to over 10 million youths across the country. This scheme, initiated by the Ministry of Corporate Affairs (MCA), is centered around engaging the top CSR (Corporate Social Responsibility) spenders in the country, with leading corporations like Reliance Industries, Tata Consultancy Services, HDFC Bank, and Infosys taking a prominent role. This initiative is poised to have a transformative impact on youth employment, especially for those from underprivileged backgrounds, making it one of the largest employment drives in India’s recent history.

Corporate Social Responsibility and Its Growing Role

Corporate Social Responsibility (CSR) has long been a focal point for large corporations operating in India, driven by the mandate to contribute to social development. The PM’s Internship Scheme is built around CSR obligations, wherein companies with high CSR expenditures are prioritized to participate in the program. The Ministry of Corporate Affairs is currently in the process of finalizing participation criteria for this scheme, which includes measuring the absorption capacity of firms based on their employee strength and CSR spending.

Key CSR Contributors: Leading the Way

Among the top players expected to spearhead the scheme are:

• Reliance Industries: ₹2,478 crore in CSR spending (FY23)
• Tata Consultancy Services (TCS): ₹2,168 crore in CSR spending (FY23)
• HDFC Bank: ₹2,161 crore in CSR spending (FY23)
• Infosys: ₹1,421 crore in CSR spending (FY23)
• ONGC: ₹1,096 crore in CSR spending (FY23)
• NTPC: ₹1,096 crore in CSR spending (FY23)

These companies will be responsible for providing internships to tens of thousands of young aspirants, creating a broad employment ecosystem with long-term benefits for both participants and the corporations themselves.

Internship Scheme Highlights: A Deep Dive

Internships for 10 Million Youths

Under the PM’s Internship Scheme, the top 500 companies in India are expected to offer internships to 10 million youths over a period of five years. This makes the scheme one of the most ambitious employment programs ever launched by the government, particularly as it focuses on sectors driven by CSR spending.

On average, each participating company will accommodate 4,000 interns annually for five years. The internship duration will span 12 months, providing hands-on business experience and exposure to various professions.

Government Support and Financial Aid

The Indian government will bear a significant portion of the financial burden, covering up to ₹54,000 for each intern. The cost will include a monthly allowance of ₹25,000 and a one-time aid of ₹26,000 for each participant. Companies will be required to contribute to the training expenses, including covering 10% of the intern’s allowance (approximately ₹6,000 per intern).

This financial structure ensures that the internship program remains attractive to both the corporate sector and the youth participating in the initiative, effectively creating a win-win situation for all stakeholders involved.

Eligibility and Selection Process: A Focus on the Underprivileged

Targeted Youth Demographic

The primary beneficiaries of this scheme will be youths aged 21 to 24, with a special focus on individuals from poor and lower-middle-class households. These candidates must meet the following eligibility criteria:

• No member of their family should be an income tax payer.
• The intern must not have attended elite institutions, such as the IITs or IIMs.

By focusing on youths from economically weaker backgrounds, the scheme ensures that the benefits of corporate internships reach those who need them the most. This initiative also seeks to bridge the urban-rural divide, providing valuable work experience to those from underrepresented regions.

Online Application Portal

To streamline the application process, the government plans to launch a dedicated online portal for the scheme. Through this platform, eligible candidates will be able to directly apply to companies participating in the internship program. This digital approach not only simplifies the application process but also ensures greater transparency and accessibility for potential interns.

Public Sector Participation: Encouraging State-Run Entities

Although state-run banks and public sector units (PSUs) are not governed by the Companies Act, they may be encouraged to join the PM’s Internship Scheme voluntarily. According to government sources, the MCA is currently in discussions with state-owned enterprises to ensure their participation, which could potentially boost the capacity of the program. Given their extensive employment capacity and significant CSR budgets, PSUs can play a crucial role in increasing the reach of this initiative.

Impact on the Indian Job Market

This internship scheme is expected to have far-reaching effects on the Indian job market, especially as it provides a much-needed boost for unemployed youth. With internship opportunities spanning various industries, participants will gain exposure to diverse business environments, enhancing their skills and increasing their employability in the long run.

Moreover, this initiative aligns with the government’s broader goal of job creation and skill development, two pillars essential for India’s long-term economic growth. By integrating CSR-driven employment schemes, India is positioning itself as a nation committed to inclusive growth, ensuring that corporate responsibility extends beyond mere compliance.

The Road Ahead: Challenges and Expectations

While the PM’s Internship Scheme is undoubtedly a step in the right direction, its success will depend on corporate participation and the government’s ability to sustain the momentum. Ensuring that the interns receive adequate training and that companies comply with their CSR obligations will be essential for the scheme’s success.

Furthermore, encouraging private sector companies to participate voluntarily could be a challenge, as the scheme requires significant resource allocation from participating corporations. However, with strong government backing and the involvement of India’s top CSR spenders, the program has the potential to become a flagship initiative for youth empowerment in the country.

Hiring AI/ML Trainee Engineer at AVASOFT | 0-2 Years Experience | Apply Now

Tata Aspiring Engineer’s Program (AEP) 2024: Exam Dates & Guidelines