Large number of students from JNU, DU, Jamia Millia, Ambedkar University and other institutions sat on a dharna at the UGC demanding the authorities to restore the fellowships.
"Our protest and 'Occupy UGC' demonstration will continue till our demands are met and the fellowships restored," said All India Students' Association (AISA) state secretary Ashutosh Kumar.
Congress' students outfit National Students' Union of India (NSUI) too has protested doing away of the fellowship.
On the first day of the protest yesterday, scores of students from Jawaharlal Nehru University and Delhi University had staged a demonstration against the UGC's move.
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The scheme of non-National Eligibility Test (NET) fellowship, which is provided to those undertaking research in central universities across India, was scrapped by UGC in its last meeting.
Under the scheme, financial assistance was provided to to students undertaking MPhil and PhD - they were provided Rs 5,000 and Rs 8,000 per month respectively.