The Hindu Business Line : Govt plan to set up new IITs, IIMs faces cost escalation

New Delhi, Dec. 26 The Government’s efforts towards skill development through setting up a large number of professional training institutions across the country during the Eleventh Plan period are already facing cost escalation.

While the initial estimates were made last year based on 2006-07 prices, the final draft of the Plan which provides for costs based on current prices shows a 10 to 15 per cent increase. The cost for setting up eight new Indian Institutes of Technology (IITs), initially estimated at Rs 1768.30 crore, has been jacked up to Rs 2,000 crore. Similarly, the cost for seven new Indian Institutes of Management (IIMs) has escalated to Rs 660 crore from Rs 583.54 crore last year.

The planned resources required for setting up 20 new Indian Institutes of Information Technology (IIITs), too, has been revised upwards to Rs 940 crore from Rs 831.10 crore, in order to accommodate the general inflation level and cost of land, building and equipment, officials in the Planning Commission said.The 20 additional National Institutes of Technology (NITs) will also cost more — Rs 500 crore instead of the previous Rs 442.08 crore, officials said.

The scenario is ditto for vocational training institutes. The planned expenditure for establishment of new polytechnics in unreserved districts has been revised upward from Rs 1,167.08 crore to Rs 1,320 crore, while the strengthening of 400 existing polytechnics and setting up 580 new community polytechnics will cost the exchequer Rs 1,000 crore and Rs 580 crore, respectively, instead of the previously envisaged Rs 884.15 crore and Rs 512.21 crore.

The Union Government’s burden on account of educational loan interest subsidy is also expected to touch Rs 4,000 crore during the Plan period against the initial estimate of Rs 3536.60 crore.