The Congress on Tuesday claimed that finance minister Nirmala Sitharaman took a leaf out of the Opposition party’s poll manifesto to announce the launch of an internship scheme for youth in 500 top companies.
In her Budget speech, Sitharaman said the government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to 10 million youth in 5 years. “They will gain exposure for 12 months to real-life business environments, varied professions, and employment opportunities. An internship allowance of 5,000 per month along with a one-time assistance of 6,000 will be provided. Companies will be expected to bear the training cost and 10%of the internship cost from their CSR funds,” she said.
In a post on X, Congress leader Jairam Ramesh said the finance minister has taken a leaf out of the Congress’s Nyay Patra 2024. He added the internship programme is clearly modelled on its proposed Apprenticeship Programme called Pehli Naukri Pakki. Ramesh criticised the government’s plan and said in its trademark style, the scheme has been designed to grab headlines with arbitrary target (10 million internships) rather than a programmatic guarantee for all diploma holders and graduates the Congress envisioned.
In its manifesto for the 2024 Lok Sabha election, the Congress said it guarantees a new Right to Apprenticeship Act to provide a one-year apprenticeship with a private or a public sector company to every diploma holder or college graduate below the age of 25. “Apprentices will get 1 lakh a year. The apprenticeship will impart skills, enhance employability, and provide full-time job opportunities for millions of youth.”
{{/usCountry}}In its manifesto for the 2024 Lok Sabha election, the Congress said it guarantees a new Right to Apprenticeship Act to provide a one-year apprenticeship with a private or a public sector company to every diploma holder or college graduate below the age of 25. “Apprentices will get 1 lakh a year. The apprenticeship will impart skills, enhance employability, and provide full-time job opportunities for millions of youth.”
{{/usCountry}}The proposed law was one of the highlights of the Congress manifesto. It was seen as an extension of the host of rights-based laws enacted under the Congress-led government at the Centre from 2004-2014.
Congress leader and former Union minister P Chidambaram said he was pleased to hear about the abolishing of the Angel Tax and added his party has pleaded for the abolition for years and most recently in its manifesto. “I am glad to know that the Hon’ble FM [finance minister] has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto. I am also happy that she has introduced the Apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto.”
Sitharaman proposed to abolish the so-called Angel Tax for all classes of investors “to bolster the Indian start-up ecosystem, boost the entrepreneurial spirit and support innovation.”
A startup or an unlisted company has to pay a part of its funding from angel investors as a tax (Angel Tax) if the total investment value of a firm is more than its Fair Market Value. The excess amount is seen as “income from other sources”, which is taxable.
The ELI scheme will be based on enrolment in the Employees’ Provident Fund Organisation. It will focus on recognition of first-time employees to support employees and employers. It also comes in three forms—for first-time employees, for job creation in the manufacturing sector and to support employers.