NITI proposes fee autonomy, infra financing agency for state universities

SPUs are universities established or incorporated by a state act and funded by state governments. Currently, there are 495 SPUs with over 46,000 affiliated institutions in India

Policy think-tank NITI Aayog has proposed fee autonomy, draft research policy and a dedicated infrastructure finance agency for state public universities (SPUs). This is among the 80 policy recommendations it made for expanding quality higher education in states.

 

SPUs are universities established or incorporated by a State Act, and funded by state governments. Currently, there are 495 SPUs with over 46,000 affiliated institutions across India. 

 

Highlighting financial constraints faced by SPUs, NITI Aayog said that inadequate state government grants cover only a fraction of a university’s operational expenses, with some falling short even for paying salaries. 

 

The policy think-tank has asked state governments to enhance autonomy for SPUs in financial decision making by introducing fee autonomy on a pilot mode test. 

 

Under this, leading SPUs can be granted autonomy for inflation-adjusted fees within reasonable limits (around 5 to 10 per cent annually) for meeting various expenditure requirements. They can provide scholarships and fee waivers for the socio-economically disadvantaged students. 

 

States have also been recommended to establish a dedicated infrastructure finance agency for SPUs, on the lines of Higher Education Financing Agency (HEFA) for premier health institutions like IITs and other central universities. 

 

“The agency can focus on providing loans and grants for infrastructure development, research facilities, and student, scholar, and faculty accommodation,” the body said. 

 

Similarly, the body has also recommended to both the Centre and states to grant tax exemptions on revenue from CSR grants and educational and research activities.

 

States have also been asked to facilitate the State Councils for Higher Education (SCHEs) as an arm of the University Grants Commission (UGC) in states, by allowing them greater control over sanctioning posts and allocating funds to SPUs. 

 

For enhancing quality, the NITI Aayog has asked states to develop a draft National Research Policy framework in alignment with the Anusandhan National Research Foundation (ANRF). 

 

“There is also a need to allocate earmarked grants for research and development activities in STEM and non-STEM areas in SPUs and higher education development in state budgets through the ANRF,” the body added.

 

The think-tank has also asked states to integrate internship and apprenticeship programmes into the curriculum and form industry relation cells to boost employability in SPUs. 

 

Terming SPUs as regional hubs for higher education, the body said they cater to 32.5 million, or 81 per cent of the total student enrolment in higher education in the country. 

 

“To reach the NEP 2020 target to double enrolment in our higher education institutions from 43.3 million students to nearly 90 million, it is of utmost importance that SPUs transition from focusing on access to higher education to delivering quality higher education,” the body added.