No additional fund to IITs by MHRD to meet fiscal deficit

The Union Ministry of Human Resource Development (MHRD) is planning to not grant any additional funds for the Indian Institutes of Technology (IITs) to meet their escalating costs.

Reportedly, the 16 IITs, including eight new schools that have been functioning out of temporary campuses since they opened in 2008-09, may be forced to reduce spending because of the government’s aversion, which stems from the need to limit its fiscal deficit.

It is likely that the new IITs may have to delay plans to move to permanent campuses in 2015-16 and their older counterparts put infrastructure expansion on hold,” said officials of the ministry.

“We had an expenditure finance committee meeting earlier this week, but the committee was not very keen in accommodating the cost escalation. The way forward seems cost-cutting,” said one of the officials.

For the 12th Five-year Plan (2012-17), the government had allocated around Rs.12, 500 crore for the IITs, of which the new tech schools are to receive a little over Rs.6, 000 crore.

However, construction delays and rising cost of infrastructure development has pushed the funding requirement of the new IITs alone to Rs.14,000 crore.

Till now the ministry has spent Rs.2,500 crore on the new IITs, which are located in Bhubaneswar, Gandhinagar, Hyderabad, Indore, Jodhpur, Mandi, Patna and Ropar, reported Live Mint.

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