 SCHOLARSHIPS

1. National Scholarship Scheme

This scheme was started in 1961-62 with 2,400 scholarships. The Scholarships are awarded for postmatric studies on merit-cum-means basis. The income ceiling for eligibility of Scholarship is Rs.25,000/- per annum after admissible rebates, The rates of scholarships vary from Rs.60/- p.m. to Rs. 120/-p.m. for day scholars and Rs.100/- p.m. to Rs.300/- p.m. for hostellers depending upon the course of studies. Since the inception of the scheme, nearly 4.75 lakh students have benefited under the scheme. 38,000 scholarships are awarded every year under the scheme from 1991-92 onwards. The expenditure upto 1989-90 level is met by the State Governments. Expenditure over and above the level attained in 1989-90 is the liability of the Central Government.

The scheme was reviewed in a meeting with Directors of Education of State/UTs in 1991 and there was general agreement as to the utility of the scheme. During the first 4 years of the VIII Plan, Rs.2.92 crore have been disbursed to States as against total outlay of Rs. 4.24 crores.

The funds requirement for 1997-98 is Rs.75.00 lakhs and for IX Plan (1997-02) will be Rs.400.00 lakhs.

2. Scheme Of Scholarships At The Secondary Stage For Talented Children From Rural Areas

This scheme was started in 1971-72. Under this scheme, 43,000 scholarships are offered every year. The distribution of scholarships is made on the basis of Community Development Blocks in each State/UT Administration. The expenditure upto 1989-90 level is met by the State Government. Expenditure over and above the level attained in 1989-90 is the liability of the Central Government. Community Development block-wise distribution of scholarships is as under :-

i) General Category - 4 Scholarships : 20,000 Scholarships of C.D. Block (Total 4X5000 CDS)

ii) Scholarships for Children of land- : 10,000 Scholarships less labourers per C.D. Block (Total 2X5000)

iii) Scholarships for Scheduled Caste : 11, 500 Scholarships children 2 per C.D. Block and one more scholarship per CDB with 20% or more SC population (total 2X5000)

iv) For Scheduled Tribe Children per Tribal C.D. Block (Total 3X500) 11,500 Scholarships

The funds required for 1997-98 is Rs.40.00 lakhs and for the IX Plan (1997-02) will be Rs. 200.00 lakhs.

3. National Loan Scholarship Scheme

The old National Loan Scholarship scheme started in 1963 was designed to provide financial assistance to needy and meritorious students to continue their post-matric studies. The scheme was being implemented through State Governments for disbursement of around 20,000 loan scholarships per annum.

The old Scholarship Scheme targetting to nurture the talent among the economically disadvantaged was discontinued from 1991-92 because of (i) unrealistic rate of scholarships with the passage of time, (ii) Low rate of returns and (iii) thinly spread out resources over a large target group.

The Government is considering the re-structuring of the scheme and fund the same as a Plan scheme. The re-structured National Loan Scholarship Scheme envisaged modifying the on-going National Loan Scholarship Scheme by dovetailing it with the scheme of educational loans of Commercial Banks. The main objective of the Scheme is to provide financial assistance in the form of Educational Loan Scholarships to the needy and meritorious students, pursuing professional educational/special higher education courses, in identified institutions, with high employability. A straight forward interest subsidy from the Department of Education for the loans sanctioned by the Banks is aimed at reducing the heavy burden of repayment of the Educational Loan at commercial rates, as per usual terms.

A Working Group has been set up to study the scheme of educational loans and go into the modalities. The Group has submitted its report to Government and a draft scheme is to be approved by EFC etc. before it is implemented from 1996-97 session.

The proposed new scheme will continue during IX Plan period.

The funds required for 1997-98 is Rs. 782.00 lakhs and for the IX Plan (199702) will be Rs. 14,164,00 lakhs.

NEW SCHEME

4. Government Of India Scheme Of Scholarships In Approved Residential Schools

A Non-Plan Scheme of scholarships in approved residential schools was started in 1953-54 and discontinued in 1991-92. The basic objective of the Scheme was to provide opportunities of studying in good residential public schools to poorer students who would otherwise not be in a position to afford such an education. A limit of Rs.25,000/- per annum was placed on. the income of the parents and the screening test was conducted by the State Governments initially and the final test was conducted by CBSE. In the CBSE test also the conduct of examination was left to the State Governments. About 500 students were selected annually.

After the decision to discontinue the Scheme in 1991-92 was taken, the fresh intake was stopped but the students who has already been selected continued to get the scholarship till the completion of their plus two education. The students are entitled for full payment to tuition fees, board and lodging which varies from school to school and other allowances as admissible under the Scheme.

The last batch completing the +2 under the Scholarship Scheme will be in 1997-98, This scheme was discontinued mainly because a similar Scheme has been launched and also because of abuse of the system in regard to income certificates and selection tests.

It is proposed to revive this Scheme as a plan scheme during the 9th Plan. EFC Memo for the scheme is under consideration of Finance. The anticipated expenditure for 1997-98 is Rs. 1.60 crores and during 9th Five Year Plan Period is Rs. 19.10 crores.