The Hindu Business Line : Govt allocates Rs 2,113 cr for IITs, NITs

New Delhi, July 7 The education sector has got a shot in the arm with the Government proposing a full interest subsidy scheme on education loans for poor students pursuing technical and professional courses in approved institutes.

It has also allocated Rs 2,113 crore for IITs and NITs pan-India.

The Finance Minister, Mr Pranab Mukherjee, while presenting the Budget, said that the interest subsidy scheme is expected to benefit nearly five lakh students.

“To enable students from economically weaker sections to access higher education, it is proposed to introduce a scheme to provide them full interest subsidy during the period of moratorium,” he said.

The scheme will cover loans taken by such students from scheduled banks to pursue any approved course in technical and professional streams at recognised institutes in the country.

However, only those students whose family income is less than Rs 4.5 lakh per annum will be eligible under the scheme.

Mr Mukherjee said the Government would allocate Rs 2,113 crore for IITs and NITs. The overall plan budget for higher education is proposed to be increased by Rs 2,000 crore over the interim budget estimate, he said.

The higher education budget for the current fiscal has been pegged at Rs 15,429 crore, including a planned allocation of Rs 9,600 crore. During the last financial year, the total allocation was Rs 11,340 crore.

The University Grant Commission has been provided an allocation of Rs 4,374.95 crore which includes expenditure for both central and deemed universities.

The provision for the scheme Mission in Education through ICT has been substantially increased to Rs 900 crore. Similarly, the provision for setting up and upgradation of polytechnics under the skill development mission has been increased to Rs 495 crore.

Announcing a special package for the Panjab University, Mr Mukherjee said, “The facilities at Panjab University, Chandigarh, need to be improved. I therefore, propose to make an allocation of Rs 50 crore for this university.”