Battling with fund crunch, Osmania University is forced to
borrow money from its engineering and technology college to adjust the deficit
in payment of salaries.
In order to pay the salaries for the month of January, the
university administration secured a loan of Rs. 3 crore from the OU College of
Engineering and College of Technology.
The university is however confident to pay back the loan
once it receives funds under the Block Grant given by the government and also
the funds raised through examination fee and affiliation fee collected from
students and colleges respectively. That money will be generated at the
beginning of the next academic year in June.
Meanwhile, the government has proposed to pay Rs. 166 crore
as Block Grant for the university in the budget introduced recently. Though
there is substantial increase compared to last year when OU got only Rs. 113
crore, the University still falls short of Rs. 70 crore to meet its salary
bill. The varsity has been financially burdened with the adoption of new pay
scales since 2008 and it has been using its surplus funds to pay salaries.
The OU Vice-Chancellor, S. Satyananarayna, said that lots of
efforts were put for the increase in Block Grant, but he agreed that the
varsity will still fall short. With regard to loan from engineering college, he
said they had to borrow money to pay salaries. “The salary and pension bill per
month is around Rs. 19 crore and we generally borrow from various sources
within the varsity and repay whenever grants are released.”
Some officials said the government has been pressurizing the
varsity to use its internal funds to adjust the increased salaries and