Govt Pushes Companies to Boost PM Internship Scheme With Dedicated Cells

The Ministry of Corporate Affairs (MCA) has directed companies participating in the PM Internship Scheme (PMIS) to set up dedicated PMIS cells within their organizations. This comes as the scheme’s pilot phase saw a lower-than-expected response, with a major gap between offered and accepted internships.

Low Acceptance Rate in First Round

In the first round of the PMIS pilot phase, companies offered 82,077 internships, but only 28,141 candidates accepted. One of the key reasons is the regional concentration of opportunities, 43% of the internships were in Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Bihar, and Haryana. Many candidates were reluctant to relocate, particularly due to the low stipend of ₹5,000 per month, along with a one-time relocation allowance of ₹6,000.

Dedicated Cells for Implementation

As per the reports, setting up PMIS cells will help companies assess workforce requirements, manage operational challenges, and develop specialized training programs for interns. Many companies have struggled with implementation due to lack of ownership at the company level and poor assessment of workforce gaps.

Companies have previously increased stipends for apprentices under the National Apprenticeship Promotion Scheme (NAPS), and a similar adjustment could be considered for PMIS interns, according to reports familiar with the matter.

Second Round of Internships Announced

To meet the FY25 target of 1.25 lakh internships, the MCA has launched the second round of the pilot phase, inviting applications for over 100,000 internships in more than 300 companies. The government is also conducting over 70 information, education, and communication (IEC) events across India to promote participation. 

One such event was held in Kolkata in collaboration with the Confederation of Indian Industry (CII) last week.

Conclusion

Announced in Budget 2024-25, PMIS aims to provide internships to 10 million candidates over five years in the top 500 companies based on corporate social responsibility (CSR) spending. Internships will include a minimum six-month training period to provide industry exposure.

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