PM VIDYALAKSHMI SCHEME
- The newly introduced Central Sector scheme aims to offer financial assistance to students, ensuring that financial limitations do not hinder anyone from pursuing higher education.
- The key difference between a central sector scheme and a centrally sponsored scheme (CSS) is that, under the former, the Union government covers the entire cost, whereas in a CSS, the Union government shares the expenditure with the state governments.
- The scheme has been allocated Rs 3,600 crore from 2024-25 to 2030-31, with an expected 7 lakh new students benefiting from the interest subsidy provided.
- The central government will offer a 75% credit guarantee for loans up to Rs 7.5 lakh. Additionally, students from families earning up to Rs 8 lakh annually, who are not eligible for any other government scholarship or interest subvention, will receive a 3% interest subsidy for loans up to Rs 10 lakh during the moratorium period.
- The interest subsidy will be extended to 1 lakh students annually, with priority given to those from government institutions pursuing technical or professional courses.
- PM-Vidyalaxmi seeks to enhance and expand the impact of the Government of India’s education and financial inclusion programs over the past decade, aiming to increase access to quality higher education for youth in India. This initiative complements the Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), both managed under the PM-USP by the Department of Higher Education.
- Quality Higher Education Institutions (QHEIs) will be determined based on the National Institutional Ranking Framework (NIRF). The scheme will apply to institutions ranked in the top 100 overall and those within specific domains, state government institutions ranked 101-200, and all centrally run institutions. Initially, 860 eligible institutions, catering to over 2.2 million students, will be included in PM-Vidyalaxmi, potentially offering benefits to students who opt to participate.
- An official from the Ministry of Education stated that students enrolled in all courses, not just technical or professional, will be eligible for the scheme. Students can apply for loans and interest subsidies through a dedicated portal.
- The Department of Higher Education will launch a unified portal, PM-Vidyalaxmi, allowing students to apply for education loans and interest subsidies through a simplified process accessible across all participating banks
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The Prime Minister’s Internship Scheme, which aims to offer internships to one crore youth across the top 500 companies over five years, launched its portal for companies to begin registering their internship opportunities on October 3 for the pilot phase.
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The scheme is designed to create internship opportunities for students to tackle youth unemployment. The Prime Minister’s vision is to provide internships to 1 crore young people over the next five years.
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Interns will receive a stipend of Rs 5,000 per month for a 12-month period. Of this amount, Rs 500 will be provided by the company through its CSR funds, and the government will contribute Rs 4,500.
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In addition to the monthly stipend, applicants will be given a one-time financial assistance of Rs 6,000 to cover incidental expenses. Moreover, initiatives such as PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana will ensure that interns are covered by insurance, with the government paying the premiums.
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The scheme is open to applicants aged 21-24 years and is being managed by the Ministry of Corporate Affairs
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For Prelims: PM Vidyalakshmi Scheme, National Institutional Ranking Framework (NIRF)
For Mains: 1.The Prime Minister’s Internship Scheme aims to address youth unemployment by providing internship opportunities to one crore young individuals over five years. Analyze the potential impact of this scheme on skill development, employability, and youth empowerment in India. What challenges might it face in implementation, and how can these be addressed?
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