In a bid to provide functional and financial autonomy to prestigious institutions of higher learning, the Union Cabinet on Thursday approved a modified block grant scheme for funding institutions like IITs and IIMs.
Briefing newsmen after the Cabinet meeting, Information and Broadcasting Minister S Jaipal Reddy told reporters that the continuance of the block grant scheme of funding, with some modifications, was approved on the basis of the experience of its implementation in Indian Institutes of Technology, Indian Institutes of Management, and Indian Institute of Science, Bangalore.
Observing that the autonomy of these institutions was adversely affected during the NDA rule, he said: "We are seeking to augment the financial and functional autonomy of these prestigious institutions."
Besides the five IITs, three IIMs and IISc., the modified block grant scheme would also be extended to two new IITs at Guwahati and Roorkee, three IIMs at Lucknow, Indore and Calicut, Indian School of Mines (Dhanbad), School of Planning and Architecture (New Delhi), National Institute of Industrial Engineering (Mumbai) and National Institutes of Technical Teachers Training and Research at Bhopal, Chandigarh, Chennai and Kolkata.
The scheme would be implemented in all these institutions with the stipulation that the level of corpus may be allowed up to Rs 100 crore (Rs 1 billion) in the case of IITs and IISc and Rs 50 crore (Rs 500 million) in respect of other institutions, Reddy said.
The Cabinet also approved the proposal to give powers to institutes that are not dependent on non-plan budgetary support to create academic posts and make appointments in them on contract basis for fixed but renewable tenures.
These measures, Reddy said, would provide further functional and financial autonomy to these institutions and encourage them to generate more internal resources, promote innovation and enable them to improve standards of education and research.
The pattern of funding would be applicable from 2005-06 onwards for a period of five years and its review would be taken up in 2010-11, he said.
