PM Internship scheme needs independent review, relaxed norms: Parl panel

The panel also sought fast-track IBC tribunals, SME engagement in internships, and robust job-tracking under the PMIS to improve impact and budget efficiency

The Prime Minister’s Internship Scheme (PMIS) should be independently and periodically evaluated for transparency, and its eligibility norms should be relaxed for marginalised and economically weaker candidates, said the Standing Committee on Finance in a report submitted before Parliament on Thursday.

 

The committee, chaired by Lok Sabha MP Bhartruhari Mahtab, said challenges relating to inclusivity, monitoring, stakeholder participation, and post-internship outcomes persist, impacting the overall budget efficiency of PMIS.

 

The scheme was allocated Rs 2,000 crore in Budget Estimates of FY25 and Rs 380 crore in Revised Estimates. “These funds suffice for the pilot phase, but dynamic reassessment of financial needs is crucial for scaling up,” the report said.

 

The committee stressed on the importance of building a robust system to monitor the internship-to-employment conversion rate, a key indicator of the scheme’s success. It said the scheme’s blanket exclusion of families of regular government employees was unwarranted, since many of them may require such support.

 

Without support for living expenses, candidates from remote or underserved regions may be unable to participate in the scheme. This will hinder the scheme’s potential to attract a diverse pool of talent.

 

The committee called for broader engagement with small and medium enterprises, startups, and regional stakeholders to ensure inclusive sectoral and geographic representation in PMIS.

 

Tackle IBC delays

 

Separately, the committee recommended setting up fast-track tribunals with strict timelines for high-priority cases under the Insolvency and Bankruptcy Code (IBC). It called for strengthening the National Company Law Tribunal infrastructure and exploring the public-private partnership model to improve judicial processes, citing the success of privatised Seva Kendras.

 

The Ministry of Corporate Affairs, in its response to the committee, said IBC reforms and strengthening the tribunal will be initiated to speed up insolvency resolution. “Additional tribunals will be established,” it said.

 

The parliamentary committee urged the government to “provide clearer guidelines on the treatment of government dues, especially taxes and penalties, ensuring equitable and transparent resolution of government claims.”

 

It recommended a mandate for processing IBC applications within 14 days and improving the standards of resolution professionals with rigorous certification, training, and independent performance reviews.

 

“By addressing delays, competency gaps, and broadening stakeholder engagement, along with leveraging technology and domain expertise, the IBC can further enhance its impact on India’s economy, ensuring faster resolutions and boosting investor confidence,” said the committee.

 

‘Disinvestments reduce fiscal burden’

 

Taking note of the discontinuation of disinvestment targets, a report by Parliament’s Standing Committee on Finance on Thursday urged the government to keep in mind the importance of strategic disinvestment in reducing the fiscal burden and promoting efficiency.

 

The government told the committee that its disinvestment strategy is an integral part of the value-creation process and has the interests of minority shareholders in mind.

 

The committee’s report on the Department of Economic Affairs stressed on the need for realistic preparation of estimates and efficient utilisation of allocated funds.

 

“The Department of Economic Affairs, being the nodal Department in formulation of the Budget, is expected to observe the requisite financial norms and maintain fiscal prudence, while making budgetary allocations,” the panel said.  

 

Noting that budget estimates for interest payments on both gross and net basis have increased over the years, the committee said, “Given that the interest payment estimates are closely linked to market conditions; building budget buffer would allow the Government to respond swiftly and flexibly during any adversities that may arise due to global macroeconomic and geopolitical developments.”

 

It asked the government to explore all possible ways to collaborate with states to achieve more consistent inflation control.

 

The committee appreciated the increased allocation for capital expenditure, saying it will enhance India’s global competitiveness and hasten sustainable economic development.