Better placements ahead? Govt mulls performance-based funding for varsities

Govt spends Rs 200-350 crore annually on each of the 43 central universities

To improve campus placements and make central universities financially accountable, the government is reported to be weighing the introduction of a performance-linked funding mechanism. Under this, an institution would get funds from the governmetn on the basis of its quality of education, among other parameters.

The government, which spends Rs 200-350 crore annually on each of the 43 central universities, will sign an agreement with the universities and monitor its progress every quarter, Livemint quoted official sources as saying.

Human Resource Development (HRD) Minister Prakash Javadekar had earlier raised the issue of education fees being too low. Therefore, the draft agreement, submitted by the Union government, seeks to ensure that the fees charged by universities recover the cost of services spent, according to the Livemint report.

The draft agreement broadly aims to:

Provide good learning experience

Interactive teaching 

Better campus placements, which is not a practice in IITs, IIMs, among other colleges

Focus on research publications and sponsored research output

Additionally, the universities will be directed to increase the efficiency of to-be-graduates so that they contribute more to the economy. 

‘Any formal agreement will be against university statue’

A Delhi University professor was quoted as saying that any formal agreement would be against the university statute, and would leave the government with the option of either amending laws or enforcing through new directives.

There have also been reports of Indian universities facing a massive staff crunch, so experts suggest filling up empty seats before to fixing financial, social and academic responsibility.

The memorandum of understanding will comprise the following:

• Vision and mission document

• Autonomy and delegation of financial powers

• Performance evaluation

• Action plan for implementation and monitoring of the promises made in the agreement 

According to the draft, the central university, University Grants Commission and HRD ministry will carry out a joint review within 90 days of completion of the financial year.