I have listed some topics for your perusal.
2.Employee Welfare Measure
4.Factors determinig Job Satisafaction of Employees
6.Settlement of Grieveance(Do it in Manufacturing concern)
7.Effectiveness of Training(Do it as Research Project)
If u need help, feel free to ask.
As our friends have given different HR topics for ur project work. I think it has given u some picture But i have some thing to tell u.
i think first u need to identify the company where u want to do ur internship and study their activity and their hr practices. Learn which activity is strong and where they need to develop in that company. Then u decide which topic should be choosen. It will give flavour to ur topic. It should be like give some valuable suggestion to the company from ur side and ur active roll to understand their process. for example, if u find their T& D activity is not strong, then try to give suggestion from ur end and get their feedback. This experience will be very useful for ur career.