Creamy layer: Institutes show way on income limit

While the government is involved in getting an idea of what constitutes the creamy layer among other backward classes (OBCs), educational institutes have been upwardly revising the income limit to determine the students who need scholarships.

While at present, OBCs whose income is Rs 2.5 lakh per annum or above cannot avail of reservations in central government jobs, the income limit for students eligible for scholarships in educational institutions is being revised upwards.

For example, till last year, IIM-Ahmedabad was giving scholarships to students whose maximum household income was less than Rs 2 lakh. But with the institute deciding to increase its fees recently, Chairman of the IIM-A governing council, Vijaypat Singhania, said they were increasing the limit to Rs 6 lakh.

This would enable more students avail of scholarships in the wake of the institute almost trebling the fees for its flagship two-year post-graduate (PGP) management programme from Rs 4 lakh to Rs 11.5 lakh.

In the IITs, the income limit to avail of the scholarships routed through the Human Resource Development (HRD) Ministry is Rs 2 lakh per annum. "While this is the threshold for the merit-cum-means kind of scholarships, for scholarships given by donors, like some private companies, it is more than Rs 3 lakh per annum or no criteria at all," said Surendra Prasad, director, IIT-Delhi. He added in contrast, all SC/ST students are getting full scholarships.

In states, the governments are seen as trying to accommodate as many people as possible under the ambit of the backward classes and below the creamy layer.

For example, in Andhra Pradesh, more than 90 communities have been classified as backward classes (BCs). Recently, the state government submitted to the Centre that it had marked the limit for the determining the creamy layer at more than Rs 4 lakh per annum.

"This was needed as the government was facing difficulty in filling the seats for the backward classes. With the threshold increased to Rs 4 lakh per annum, most people can now avail of the opportunities provided," said a state government official.