Government today approved a proposal for introduction of a revised block grant scheme for funding non-plan expenditure of IITs and Indian Institute of Science (IIS), Bangalore, from 2012-13 to 2016-17 fiscal to improve their financial health.
The amount computed as non-plan grants for the IITs will be based on student strength under the new proposal cleared by the Union Cabinet today.
Expenditure on scholarships/fellowships, being a planned activity, shall henceforth be funded through plan funds.
The Block Grant Scheme would provide for matching grants from the government for the savings made by the institute from revenue expenditure.
This is expected to instill fiscal discipline among the institutes and encourage them to generate more resources, said a government statement.
Based on the student strength of the IITs and IIS, Bangalore, during 2012-13, block grant for 2012-13 has been worked out to around Rs 1562.69 crore.
The financial health of the eight IITs and IIS, Bangalore, will improve and these institutes will be encouraged to generate more revenue which will in turn enable them to achieve further financial and functional autonomy, the statement said.
