Standing Committee on Finance Flags Gaps in PMIS and IBC

On July 31, 2025, the Standing Committee on Finance, chaired by MP Bhartruhari Mahtab, submitted a report in Parliament highlighting key issues and recommendations related to the Prime Minister’s Internship Scheme (PMIS), Insolvency and Bankruptcy Code (IBC), and rising direct and indirect tax disputes.

Key Highlights:

Prime Minister’s Internship Scheme (PMIS)

• Budget Allocation:
  • ₹2,000 crore allocated in BE FY25; revised to ₹380 crore in RE FY25.
  • Current funds sufficient for the pilot phase, but require dynamic reassessment for scaling.
• Issues Identified:
  • Exclusion of families of govt. employees deemed excessive.
  • No support for living expenses hinders participation by candidates from remote or economically weak backgrounds.
  • Poor monitoring of internship-to-employment conversion rates.
  • Limited engagement with SMEs, startups, and regional organisations.
• Recommendations:
  • Periodic and independent evaluation for transparency.
  • Relax eligibility norms for marginalised and poor candidates.
  • Establish a robust monitoring framework to track internship outcomes.
  • Expand participation to diverse sectors and regions.

Insolvency and Bankruptcy Code (IBC)

• Issues:
  • Delays in resolution and growing case backlog at NCLTs.
• Recommendations:
  • Set up fast-track tribunals with strict timelines for high-priority IBC cases.
  • Strengthen NCLT infrastructure and explore public-private partnership models, inspired by the success of Seva Kendras.
  • Ministry of Corporate Affairs agreed to initiate reforms and expand tribunals to improve case disposal speed.