HT explainer: What’s behind Panjab University’s financial crisis
Panjab University’s financial woes began with the re-organisation of Punjab in 1966 when a new state of Haryana was carved out and some of its areas were merged into Himachal Pradesh
With the Punjab governor and UT administrator Banwarilal Purohit set to meet with the chief ministers of Punjab and Haryana today over Panjab University’s financial constraints, where a resolution from the governor is expected on Haryana’s proposal to pay a grant to PU in lieu of affiliation to its colleges, HT takes a closer look at the issues and outcomes:
What spurred PU’s fiscal woes
Panjab University’s financial woes began with the re-organisation of Punjab in 1966 when a new state of Haryana was carved out and some of its areas were merged into Himachal Pradesh. Haryana and Himachal gradually withdrew financial support after they set up their own universities. In 1976, a consultative committee of the central government fixed the funding ratio between the Centre and Punjab government at 60:40. But in 2011, Punjab froze its contribution at ₹20 crore. The central government followed suit and capped the grant at ₹176 crore for 2014-15, leaving the varsity mired in financial woes. The centre eventually decided to hike the grant by 6% annually, but that proved negligible amid inflation and pay revisions. For instance, for the 2023-2024 academic session, UGC will pay a grant of ₹294 crore and Punjab ₹38 crore, still leaving a deficit of around ₹118 crore. Besides, PU also has to clear arrears worth ₹200 crore.
What’s the impact of the financial crisis
Students and teachers are grappling with the aging infrastructure of the university as compared to other public institutions, let alone private universities. The matter was also raised in the recent senate meeting where the fee hike agenda was taken up. Senators from faculties like law and engineering expressed how the students have to make do with aging infrastructure. A senator had remarked that computers are 13 years old in her department and not capable of running the recent softwares needed for current courses. This has translated into a decline in placements and rankings for PU. In 2022, PU slipped three spots in the NIRF rankings, dropped from the 601-800 bracket to the 801-1000 bracket in the Times Higher Education rankings and failed to feature in the top 1,000 in the QS World University Rankings.
What has Haryana suggested
In the June 1 meeting convened by the Punjab governor and Chandigarh administrator with the Punjab CM, Haryana chief minister Manohar Lal Khattar is said to have offered a grant to solve the university’s financial woes on the condition that colleges in Panchkula, Ambala and Yamunanagar districts be affiliated to PU. Through a subsequent release, Khattar had said the aim of the National Education Policy was that all educational institutions cooperate in the progress of the country. Already party to a suo motu petition initiated by the Punjab and Haryana high court in 2016 over PU’s poor financial health, in 2017 Haryana had also written to the Centre for initiation of the process of restoration of state’s share in PU. Before HC, Haryana had promised an annual grant of ₹25 crore.
Why is Punjab opposing Haryana’s proposal
In the 2016 suo motu petition, referring to Haryana’s proposal, Punjab in 2018 had submitted, “Right from the beginning, it (PU) has emerged as an educational and cultural symbol of Punjab’s legacy and inheritance to an extent that it has almost become synonymous with the state of Punjab…The state of Haryana cannot arrogate itself the privileges of altering history as and when it wishes.” The state had maintained that Haryana itself withdrew in 1976 and disaffiliated its colleges. Even in the June 1 meeting, Punjab CM Bhagwant Mann had taken a similar stand and said the university was the heritage of the state and any sort of change in its character will not be tolerated. In Punjab, for any party, it is more of a political issue. Issues such as SYL and PU has a resonance in masses and no political party wants to be seen taking a stand, which is considered “against state and its people’s interest”
What is UGC position on the financial support to PU
The UGC had fixed the grant for PU at ₹176 crore in 2014 and ever since has been granting only a 6% annual hike. PU has sent numerous reminders to UGC to revise the grant in view of the implementation of the revised pay scales in line with the 6th and 7th Pay Commission recommendations. But in their recent letter on March 22, 2023, the UGC education officer said there was no possibility of any further increase in PU’s salary grant at this stage. More reminders by PU have failed to move UGC.
What’s the road ahead
Whatever the final outcome of the meeting on Monday, former PU vice-chancellor (V-C) Arun K Grover feels there isn’t a simple solution to PU’s financial woes and even allowing Haryana to affiliate its colleges to PU might not solve the fund crunch. However, experts say PU’s problem requires judicious benevolence from all stakeholders. The past hatchets should be buried and political class or government in power in Punjab should take a decision on this boldly — either to increase grant substantially or allowing others’ say in varsity affairs.They say by allowing Haryana’s association, Punjab may reduce its financial burden. “In fact, Himachal Pradesh should also be approached. Majority of students are from these three states. In turn, some seats could also be reserved for students from these states,” added one such expert, who wished not to be quoted. The varsity’s fee structure is very high in comparison to other universities in the region. Students can’t be burdened with fee hike every time to tide over the fund crunch. “The Centre also needs to loosen its purse strings and convince Punjab to increase its grant or let other states pitch in to help premier institute of the region,” added another expert from the varsity.
