HRD Ministry asks IITs to develop revenue model
The Union Human Resource Development Ministry has asked the Indian Institutes of Technology to develop revenue models for their operations. It has asked them to furnish details of fees collected, expenditure, loans, and concessions granted and draft a revenue model based on the figures available. IIT directors had recently complained that they were not making any revenue despite grants from the ministry.
What is the issue about?
IITs had long been complaining about stagnation in revenue. To this effect, former Union HRD Minister Smriti Irani proposed a 122% hike in fees, along with concessions for special category students. IITs argued that the concessions nullified any revenue growth that they may have seen. HRD Minister Prakash Javadekar promised to look into the issues and suggest alternatives.
IITs ask for alternatives to fee waiver
IITs also suggested that there should be an alternative to fee waivers for economically backward students. They suggested that there should be either reimbursement from the HRD Ministry or interest free loans for such students.
What has the HRD ministry asked?
The HRD Ministry asked IITs to prepare an analysis of their annual finances and develop a revenue model around it. They also asked IITs to give suggestions on what loan structures they would like, and how to implement them. The ministry said an analysis of data would give better perspective on how to improve their finances.
