Govt. Floats Agreement that may hold IITs Accountable to Get Funds

TheCentral Governmenthas asked all IITs to sign anagreementthat will hold them ‘accountable’ for the funds that are granted these institutes. The extraordinary move of the Government, if implemented, will require the old IITs funded by the centre to deliver on performance parameters, raise their own resources for funding and help in nation building.

According to the sources, some of theIITswere not very enthusiastic about the agreement and expressed their reservations regarding the move. The Government allocates funds worth Rs. 12,000 crore tocentral education institutes. Out of this, Rs. 500 crore is given to five of theold IITs. If the agreement is signed by both parties, IITs will be asked to link the funding to action plans and outcomes.

Adraft of the MoUhas already been forwarded to each IIT along with a communication to allIIT directorson 16 January. The communication informed that the funds allocated for 208 will be based on annual development plans instead of the block grant mechanism. TheHRD Ministryhad also invited proposals from IITs seeking grants, latest by January 25, 2018, in order to further discuss the matter.

How will the Agreement affect the IITs?

• The draft MoU requires allIITs to increase their student intakein order to meet the demand of the industry.
• It also calls on the IITs to boost indigenous manufacturing, provideR&D consultancyand contribute in nation building through technological innovations and flagshipschemes of Governmentfor economic growth.
• TheMoUalso asks all the IITs to recover user charges at rates no less than the cost recovery norms. It also suggests that the IITs offer as many self-supporting courses as possible rather than offering courses through cross-subsidy that leads to overcharging students.
• The agreement also asks IITs to get government approval before signing a collaboration orMoU with any foreign organization. It also states that the accounts must be audited by internal auditors regularly apart from a formal CAG audit.
• IITs will also have to submitannual targetsand deliverables according to the list of performance evaluation parameters mentioned in the agreement on a nine-point scale with negative marking applied.
• Evaluation will be done quarterly on the basis of academic receipts, interest earned, income from investments, consultancy, prior-period income, overheads, user charges, subsidy and other incomes. The scores will be forwarded to theBoard of Governorsfor joint review at the end of financial year.
• TheDirectors of IITswill be required to ensure solutions for issues raised. TheMHRDwill provide financial support for recurring as well as non-recurring liabilities according to the government norms. It will also provide guidance to resolve various issues.

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The agreement has been introduced by the Government to comply with the new General Financial Rules 2017 set up by the Ministry of Finance. The move is expected to increase efficiency in expenditure of funds and measuring performance keeping the action plan in mind. The same model will also be implemented for the NITs as well as other centrally funded institutes.