News

IITs to get funds on expenditure-per-student formula

Under a new plan, the Indian Institutes of Technology will receive funds from the ministry based on their student strength. The human resource development (HRD) ministry worked out the expenditure-per-student formula on the basis of IIT data on expenditures, such as faculty and staff salaries, retirement benefits, maintenance and other costs.

The 20 per cent formula was agreed at a meeting between the directors and higher education secretary Vibha Puri Das on May 5, 2011. 

Although government will provide 80 per cent funding to the premier technical institutions, IITs will have to raise 20 per cent of the money themselves.

For this year, an expenditure-per-student formula has been estimated at Rs 2.5 lakh. It will be raised every year taking into account inflation, staff and teacher salary increases, and other expenses.

“This funding system is much more logical. We can better manage the expenditures on faculties and maintenance of facilities like buildings, labs and hostels,” IIT Guwahati director Gautam Barua said.

Barua said IIT Guwahati received around Rs 27 crore a year from the Centre under the old “block grant” system but would now be entitled to Rs 90 crore because it has 3,600 students. It will receive Rs 72 crore from the Centre and have to generate the remaining Rs 18 crore on its own.

IIT Delhi director Surendra Prasad said raising 20 per cent of the money would not be a problem for the premier tech schools. The IITs already generate a little less than 20 per cent of their recurring expenses through students’ fees, research-based industrial consultancy and sponsored projects.

“The institutes are increasing sponsored research and consultancy work. We can generate 20 per cent of the recurring expenses,” Prasad said.

[Source: The Telegraph]

 

Show More

Related Articles

Close