The latest budget presented by Hon’ble Finance Minister has tried to earn many brownies (credits) for introducing the concept of internship.It is stated in the budget speech itself that Rs.5000/- per month per intern will be financed through the budget in addition to Rs.6000/- to be paid extra for worker on his or her enrollment as an intern. In other words, the trainees will get at least Rs.5000/- per month for a duration of 1 year. It is further stated that the top 500 companies (employers) will be able to employ such trainees and the total number to trainees anticipated is 10 million over the next five years. This means 2 million additional jobs will be created each year by top 500 companies. In other words, on an average each one of the 500 companies will employ 40,000 interns every year.

A simple look at these numbers indicates that this is a highly ambitious and probably impossible target to meet for the 500 companies. Even if 5000 companies are identified then the annual target of additional employment will come to 4000 interns.

This is also almost as ambitious as before.This also raises a number of questions, the answers of which are still awaited.

1.What exactly will be the administrative arrangement to decide who is entitled (employer and employee)? What would be the selection process and how the funds will be disbursed? Direct to the intern or to the employer?

2.This will create room for nearly 40,000 interns per employer if we take the budget’s speech as reference which states that 500 employers are identified. This will be a huge number and feasibility is a question.

3.If the employer gets such support (indirect subsidy) would it not lead to a temptation to reduce their existing employment strength of unskilled and skilled workforce and filling up the vacancy through such interns who are willing to work at very low and almost nil cost?

I will only be too happy to stand corrected if there is any gross error in my understanding because to my mind the announcements made by the Finance Minister are too big, too vague and too good!