FINANCE AND ITS MANAGEMENT
 

43 The IITs will need to be supported by provision of substantial Plan Funds by the Human Resource Development Ministry to cater for:

- removing obsolescence and modernising of the laboratories and workshops;

- filling up critical gaps in campus facilities more particularly faculty housing, hostel, library and laboratory space;

- upgrading computer facilities and central instrumentation facilities;

- establishing facilities for new thrust areas on project basis. (Para 5.1.1)

44 The provision of Rupees 50 crores suggested by the Steering Group on Education for the Seventh Five Year Plan would appear to be a subcritical investment. Broad estimates presented to the Review Committee by the IITs indicate the need for an investment of about Rupees 258 crores. The Committee would recommend that the Plan Funds to the IITs in the Human Resource Development Ministry's Seventh Plan should be atleast of the order of Rupees 100 crores. The IITs must be able to earn and attract substantial funds to support a major part of their research activities, through sponsored projects and consultancies. This is a corollary to the need for strengthening the linkages with industry and R&D funding agencies. (Para 5.1.2)

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45 The Committee recommends that the Ministry's support to the IITs through Non-Plan budgetary support must be contained. Each IIT will need to critically examine the Non-Plan expenditures and adopt zero- based budgetary principles. A closer internal scrutiny of cost of administration services and its effectiveness is necessary. Avenues for augmenting the income of the IITs needs to be explored. The Committee recommends that approximately a third of the operating cost should be met by their own generations. In relation to the cost of education in the IITs, the tuition and academic fees charged is negligible. The Committee recommends that these fees should bear more reasonable relationship with the cost of imparting education in the IITs. The students who would be unable to meet this enhanced fees, should be helped through bursaries created out of endowments from the government as well as from other sources. Loan schemes from banks should also be introduced to help students meet cost of their education. The existing scheme for provision of scholarship will need to be appropriately reviewed. (Para 5.2)

46 The Non-Plan budgetary support to the IITs may be determined on a five year grant basis, on realistic estimates of projected gaps between income and expenditure. Adjustments should be annually made only to compensate for increase in wage-bill due to liability for additional emoluments on account of government decisions. (Para 5.2)

47 The principles and practices of professional financial management should be adopted in the IITs to serve as meaningful tool for relating performance to budgeting and mobilising and channelising resources in a scientific way. It is necessary to introduce modern methods of management accounting. It is also necessary to simplify and rationalise procedures relating to purchase, stores and inventory, municipal services, bills and disbursements etc. (Para 5.3)