Indian Higher Education gets boost in Union Budget 2009-10

Continuing its thrust on higher education, the Union Budget 2009-10 on Monday proposed to allocate over Rs. 21 billion for the Indian Institutes of Technology (IITs) and the National Institutes of Technology (NITs).

"I am allocating Rs. 2,113 crore (Rs. 21.13 billion) for IITs and NITs, which includes a provision of Rs. 450 crore for new IITs and NITs," Finance Minister Pranab Mukherjee said while presenting the Budget. Currently, there are 12 IITs and 20 NITs operating across the country including the new ones.

"The demographic advantage India has in terms of large percentage of young population needs to be converted into a dynamic economic advantage by providing them the right education and skills. The provision for the scheme Mission in Education through ICT has been substantially increased to Rs. 900 crore," Mukherjee added. Similarly, the provision for setting up and up-gradation of polytechnics under the skill development mission has been increased to Rs. 495 crore (Rs. 4.95 billion).

Aligarh Muslim University, a central university, has decided to establish its campuses at Murshidabad in West Bengal and Malappuram in Kerala. "I propose to make an allocation of Rs. 25 crore (Rs. 250 million) each for these two campuses".

"The government shall take forward its intent of having one central university in each uncovered state and for this purpose I am allocating Rs. 827 crore (Rs. 8.27 billion)," the minister announced in his budget speech. Announcing a special package for Panjab University, Mukherjee said: "The facilities at Panjab University, Chandigarh, need to be improved. I therefore, propose to make an allocation of Rs. 50 crore (Rs. 500 million) for this university."

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. It will cover loans taken by such students from scheduled banks to pursue any of the approved courses of study, in technical and professional streams, from recognised institutions in India . It is estimated that over 500,000 students would avail of this benefit.