Indian Union Finance Minister Nirmala Sitharaman on Tuesday said that in order to provide on-job training to youth, the government will launch an internship scheme to provide opportunities to 10 million youth in top 500 companies over the next five years.
Sitharaman proposed that for the interns to get exposure to real life environment an internship allowance will be provided of Rs5,000 per month.
Companies facilitating the internship, she said, will bear training and 10 per cent of training cost from their respective Corporate Social Responsibilty funds.
The rules in Section 135 of the Companies Act 2013 make it mandatory for companies of a certain turnover and profitability to spend 2 per cent of their average net profit for the past three years on corporate social responsibility activities.
Union Finance Minister Sitharaman in her Budget speech proposed the creation of employment of over 40 million youth over the next five years.
Towards it, the finance minister said that Government has made an allocation of Rs0.2 million crore.
Similarly, for skilling youth so as to generate job opportunities, she proposed Rs1.48 crore. 2 million youth will be skilled over a five-year period.
A total of 1,000 industrial training institutes will be upgraded, she announced.
She proposed in her speech that a one-time wage would be provided to all first time employees in all sectors. The incentive for first-timers would be provided through Direct Benefit Transfer (DBT)
Sitharaman said employment, skilling, MSME, and middle class are among key focus areas of this Budget.