Centre weighs SEZ, GCC pilots to boost PM Internship Scheme

The corporate affairs ministry is considering a raft of measures, including pilot projects involving entities in special economic zones (SEZs), global capability centres and select small and medium enterprises, to improve participation in the PM Internship Scheme, people aware of the development said.

The ministry also plans to widen the pool of companies eligible to offer internships by including firms nominated by state governments, they said. Each state may be allowed to nominate up to 20 companies registered in its jurisdiction.

The move follows a muted response in the first two phases of the scheme, prompting the ministry to consider fresh measures to improve participation in the ongoing third phase, which began in March.


Professional institutions, small and medium enterprises selected through industry associations and statutory authorities could also be tapped to broaden participation of both recruiters and candidates, the people said.

The government has already expanded the number of eligible sectors to 31 from 25. The new sectors include electronics; engineering and design services; facilities management and business services; logistics, supply chain and shipping; and workforce solutions and human resources.

It is also considering allowing companies without mandatory corporate social responsibility (CSR) obligations to participate, subject to certain conditions. Earlier, CSR spending was a key eligibility criterion.

“The government is considering many steps with inputs from key stakeholders. A final decision on them will be made soon,” one of the people said. “The idea is to broaden participation, drawing lessons from the first two phases of rollout.”

Lower-than-expected participation and high dropout rates led to a sharp reduction in the scheme's allocation to Rs 526 crore for FY26 from the budgeted Rs 10,831 crore. The allocation for the current fiscal year has since been increased to Rs 4,788 crore.

NCC tie-up
The government has roped in the National Cadet Corps (NCC), seeking to leverage its extensive youth network to deepen participation.

For instance, the NCC Directorate in Maharashtra recently organised camps in Mumbai and Pune where Lemon Tree Premier offered internship opportunities to 70 candidates over two days. More such camps are expected in the coming months.

Major general Vivek Tyagi, additional director general of NCC, Maharashtra Directorate, said: “The Maharashtra PMIS camps has demonstrated that India’s youth ecosystem requires convergence. NCC already provides values, discipline, leadership and grassroots reach. If we continue to hand-hold our youth beyond their cadet years by connecting them to national skilling, internship and employment initiatives, it becomes a force multiplier for Viksit Bharat.”

The government has also increased the monthly stipend to Rs 9,000 from Rs 5,000 for the third phase. The minimum eligible age has been reduced to 18 years from 21, while the upper age limit remains unchanged at 24.

The internship duration has been revised to six or nine months from one year, in line with requests from services companies. Final-year undergraduate students are also now eligible to apply.