New Delhi: Education made up about 33% of the Corporate Social Responsibility (CSR) spending by corporations in FY23, the highest amount ever, as the government introduced a new programme requiring companies to use their CSR funding to cover 10% of internship fees.
According to government data, companies spent Rs 1,164 crore on imparting vocational skills under CSR in FY23, up from Rs 1,033 crore in the previous fiscal.
In the Union Budget 2024-2025, Finance Minister Nirmala Sitharaman announced a new scheme for companies to use their CSR funds to cover 10 percent of internship costs.
If a company meets certain criteria, such as a net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, it must comply with CSR provisions under Section 135(1) of the Companies Act, 2013, and the Companies (CSR Policy) Rules, 2014. These provisions mandate that such companies spend a certain percentage of their profits on CSR activities, which now includes covering 10% of internship fees.
The government’s new initiative aims to create skilling opportunities for one crore youth in the top 500 companies over the next five years. Under the new internship scheme, each intern will receive a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000.
According to the Budget document, it will provide 12 months of real-life business exposure, and participating companies can cover training costs and 10 percent of the internship costs from their CSR funds.
Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship (Independent Charge), emphasized that the scheme is a beacon of hope for the youth, bridging the gap between academic knowledge and industry requirements, and empowering young individuals with practical experience and financial support.
The scheme’s alignment with broader goals of improving employability, stimulating economic growth, and promoting sustainable development reassures the audience of its strategic importance and long-term impact.
Industry experts have hailed the new initiative, expressing confidence in its potential to bridge the gap between academic learning and practical industry experience and create a more skilled and job-ready workforce.
According to them, such a workforce is crucial for sectors like real estate, where practical skills and experience are highly valued.
Meanwhile, the government also plans to incentivise 30 lakh youth entering the job market by offering a one-month PF contribution.
–IANS
