PM Internship Scheme (PMIS) is facing challenges. Despite companies offering 82,077 internships, only 28,141 candidates accepted the offers in the first round. Many students were unwilling to relocate due to the low stipend. The government is now working on major changes to make the scheme more effective.
Why Are Students Not Accepting Internships?
The internship scheme was launched to provide hands-on experience to students. However, the response has been lower than expected. There are several reasons behind this:
- Low Stipend – Candidates receive ₹5,000 per month along with a one-time ₹6,000 allowance. This amount is not enough to cover living expenses in another state.
- Relocation Issues – Many internships are offered in states like Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Bihar, and Haryana. However, candidates from other regions are unwilling to move.
- Selection Process Issues – Currently, the government shortlists candidates for internships. Companies do not have the right to choose. This sometimes leads to a mismatch between candidates and job roles.
- Lack of Interest from Companies – Since the selection is done by the government, companies feel they have less control over the process. Many firms do not actively engage in the program.
Government’s Plan to Improve the Scheme
To fix these problems, the government is planning several key changes:
1. Local Selection of Candidates
The government may start selecting interns from the same state as the company. This will:
- Reduce relocation issues
- Increase participation
- Ensure better alignment between candidates and industry needs
2. Giving Companies More Control
Large companies have requested the right to select candidates instead of relying on government shortlisting. The government is still considering this request.
3. Encouraging Companies to Create PMIS Cells
Companies are now being asked to set up in-house PMIS cells. This will help them manage internships better and ensure smoother operations.
Challenges Faced by Companies
Many companies support the scheme but face difficulties in implementation. Some of the biggest challenges include:
- Mismatch of Skills – Candidates selected by the government often do not meet the company’s requirements.
- Financial Constraints – The stipend is too low to attract interns from different states.
- Training Issues – Companies need to invest time and resources in training interns. However, due to geographic constraints, many firms struggle with this.
Experts’ Opinions on the Changes
Industry experts believe these proposed changes can increase participation and reduce dropout rates.
- Pallavi Jha, CMD, Dale Carnegie India, stated that local selection will improve efficiency and remove relocation barriers.
- Jaideep Kewalramani, COO, TeamLease Edtech, mentioned that internships should focus on providing hands-on experience to students in nearby industries.
Future Plans for PMIS
For the 2024-25 financial year, the Ministry of Corporate Affairs (MCA) aims to provide 1,25,000 internships across 500 partner companies. These companies have been selected based on their Corporate Social Responsibility (CSR) spending over the last three years. The industries covered include:
- Aviation & Defence
- Automotive
- Banking & Finance
- Chemical Industry
- Oil, Gas & Energy
The government has also planned 70 district-level events to promote PMIS and increase awareness.