A mega-plan to support interns is going back to the drawing board

The revised scheme is set to be placed before the Union cabinet for approval soon, two persons aware of matter said on the condition of anonymity.

The scheme aims to give one-year internship opportunities to 10 million people over five years, and offers ₹5,000 in monthly stipend and a one-time payment of ₹6,000 to interns upon joining.

Based on experience from the earlier two phases of the pilot project implemented so far, the modification to the scheme will be comprehensive based on a review of all the parameters, eligibility conditions and the scope of the scheme, unlike minor tweaks contemplated earlier, said the first person.

With the pilot scheme completing one year in October, its full-scale rollout has become imminent. The internship scheme is a priority for the government, given that real-world experience for the youth in a corporate environment is seen as indispensable for increasing their employability and realizing the demographic dividend for the country.

Data available from the government showed that while candidates have actively responded to the call for applications, the actual number of persons who have signed up for internship is much lower, suggesting that reworking the scheme’s parameters can improve the number of people joining.

In the first phase of the internship scheme that was rolled out in October 2024, the top 500 companies in India offered 127,000 internships against the target of 125,000. While 621,000 people applied for these, only 28,000 accepted offers and over 8,700 joined. In the second phase rolled out in January this year, partner companies offered 82,000 internships. Over 24,000 accepted the offers, as per information shared by minister of state for corporate affairs Harsh Malhotra with the Lok Sabha in August.

Queries emailed to the ministry of corporate affairs on Friday seeking comments for the story remained unanswered till press time.

Mint reported on 13 March that the exact location of the internship opportunities will be made available to candidates with geotagged coordinates to give an idea of the travel requirement within a district. Travel requirement is a consideration for many candidates while deciding to accept an offer.

Experts said the proposed modifications to the scheme, including the introduction of geotagged locations, may enhance transparency and internship adoption, helping candidates make informed decisions.

“Further, encouraging internships in smaller towns and villages is a welcome step toward equitable skilling, bridging the urban-rural divide in workforce development. To further strengthen youth employability, we recommend integrating internships with undergraduate programmes under the National Education Policy, ensuring that 50% of credits are skill-based," said Nipun Sharma, chief executive officer, TeamLease Degree Apprenticeship.

At present, the scheme is not open to those from families with income above ₹8 lakh in fiscal year 2024 (FY24) and those from families with any member having permanent government employment. Also, it is not open to those having coveted professional degrees in medicine, technology, law or management as the scheme is designed to make sure that maximum benefits reach those from socioeconomically disadvantaged sections of society. The scheme is open to those with industrial training institute (ITI) certificates, diplomas and bachelor’s degrees, and in the age group of 18 to 24 years.

“Additionally, introducing third-party agents can ease corporate participation, as seen in National Employability Enhancement Mission and National Apprenticeship Promotion Scheme. Expanding beyond the top 500 CSR-spending firms will drive broader industry engagement, fostering large-scale skilling. Workshops nationwide will further accelerate awareness and adoption of the scheme," said Sharma.