Fund crunch hits TN universities hard as Centre, state feud over NEP

Higher education, once a source of pride for Tamil Nadu, has been pushed to the brink, thanks to a bitter and unending tug of war between the state administration and the Central government that has left the coffers dry.

The huge shortfall in fiscal allocation by the Union government to premier state-run universities coupled with mismanagement of funds in some places has led to such a precarious situation that scores of staff have not received their salaries in months.

In the process, numerous research projects have been axed over the past five to seven years.

Staff, students hit hard

Without full-time vice-chancellors in place and insufficient funds to run the institutions, thousands of posts remain vacant and several research projects are halted, leaving Tamil Nadu’s universities on the brink of collapse.

The biggest losers in this Centre-Tamil Nadu battle are scholars, researchers as well as young students who were hoping to receive quality education.

On the one hand, funds are not granted by the Universities Grants Commission (UGC). On the other, the state government has stopped funds as pending audit objections prevent the universities from getting fresh funds.

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Reasons for non-funding

The non-release of funds from the Narendra Modi government has several stated reasons.

Tamil Nadu’s refusal to implement the National Education Policy (NEP) and its demand for the Governor to keep a distance from the appointment of vice-chancellors for state-funded universities are major points of contention.

A senior professor told The Federal that the UGC had been sending letters to universities warning that funds would be stopped if they do not implement the NEP.

Delhi versus Chennai

Informed sources say that while Anna University, a leading engineering university in the state, has enforced NEP guidelines in syllabus framing, universities offering arts and science education are in a fix.

"We have no clear view — whether to implement NEP to receive UGC funds or refrain from it to receive state funds,” a professor said, airing a dilemma which is widespread.

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“Madras University, Madurai Kamaraj University and Bharathiar University are functioning for over a year without vice-chancellors as the state government is fighting in the Supreme Court the appointment process suggested by the Governor," the professor added.

MSU: Scrapping the bottom

“Also, the state government is unwilling to implement the NEP and also delays the appointment of vice-chancellors to challenge the Union government’s stance. The students and teachers are bearing the brunt," he said.

On the financial crisis at the Manonmaniam Sundaranar University (MSU) in Tirunelveli, its vice-chancellor N Chandrasekar said it had to withdraw a part of the deposits made in the Tamil Nadu Transport Development Finance Corp Ltd to survive.

"The central assistance to MSU was stopped six years ago. We did not receive financial assistance from the state government either. We have not received any Corporate Social Responsibility (CSR) assistance. Although MSU is supposed to receive Rs 60 crore a year from the government, this has been withheld since 2016, citing audit objections," Chandrasekar told The Federal.

Woes of Madras University

The 167-year-old Madras University, one of the oldest in India, has not paid pension dues to retired employees, both faculty and non-teaching staff, for six or seven years.

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"Some pensioners died during the pandemic. Hundreds of pensioners have staged demonstrations demanding their dues,” a professor who did not want to be identified by name said, explaining the sad state of affairs in what is said to be one of the best educational institutions in the country.

“Currently, there are no assistants in many labs. Professors are forced to take on multiple roles, acting as clerks, assistants and more. We are not taking any fresh research projects and students are discouraged. They just pass the exams and get their degrees without any practical exposure," he added.

A severe crisis

Madras University presented a deficit budget of Rs 132.33 crore for 2024-25. It is in urgent need of funds to pay salaries and pensions. The state government has allocated only Rs 7.59 crore as a block grant.

"Many universities have been pushed to the point of scrapping emergency funds, withdrawing long-standing deposits and even using corpus funds,” said another university insider.

“Though the state government has released block grants for emergency needs, it has told the universities that it will not be responsible for salaries and pensions. Several demonstrations have been held by professors, students and pensioners. Petitions have been sent to the Union government,” the source told The Federal.

No money, no research

The cumulative effect of all this is that the efficiency of the universities is deteriorating day by day. Another academic pointed out that universities were lacking essential facilities to teach and conduct research due to lack of funds.

According to findings from PRS Legislative Research, the largest portion of India’s research expenditure is borne by the Union government.

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In 2020-21, the Centre covered about 44 per cent of India’s R&D expenditure. States and the Union government together contributed about 50 per cent. Universities contributed only 9 per cent to the overall research expenditure.

In contrast, countries like Canada, Australia, France and Italy allocate over 20 per cent for research.

Minister’s frank admission

Tamil Nadu's Higher Education Minister Gopi Chezhian admitted there was a mess and underlined the urgent need to redress the multiple problems.

He told The Federal that nearly Rs 153 crore was released on December 5 for the development of laboratories, classrooms and other infrastructure facilities in government arts and science colleges, multi-disciplinary technical colleges and government engineering colleges.

Block grants were also released for universities facing financial crises.

Asked about the dire situation at premier institutions like Madras University which are unable to pay salaries, he said: "Over the last 10 years, many of our state universities did not get adequate research grants from the UGC which were previously available.

‘Issue needs immediate redress’

“Enrolment for higher education has improved in Tamil Nadu. However, the financial crisis, due to audit objections and reduced funding, has led to arrears. We must address this issue immediately.

“As a mitigation measure, we have released block grants to universities for emergency needs and planned collaborations between universities and industries in various programmes," Chezhian told The Federal.

The minister said universities have been asked to draft plans for designing courses in collaboration with industries so as to bring revenue and also meet the demand of the industries.

Patching up with state funds

What steps, if any, are being taken to secure funds from the UGC and other Union government schemes?

Said Chezian: "State government-run universities in Tamil Nadu, like those in other states of India, typically receive funding from the Union government through schemes and grants. The Centre allocates funds for specific purposes, including infrastructure development, research funding, faculty development and overall academic improvement.

“However, it’s getting tougher these days. We have explained our situation to the Union ministry and sent reminders. We are hopeful and trying to make the best use of state funds constructively."

Where stalwarts studied

Retired professor and alumnus of Madras University, S Tamilarsan, says it is pathetic to watch the state's prestigious universities getting caught between the union government and the state government.

“We have to work towards upgrading our education system and empowering our youth through education. But our universities are suffocated due to a lack of basic facilities and are also forced to listen to two different governments," Tamilarsan told The Federal.

"Madras University has a history of producing stalwarts in various fields, such as the great Indian mathematician Srinivasa Ramanujan, former Union Finance Minister P Chidambaram, physicist CV Raman, tennis player Vijay Amritraj, and many more. But the current status of the university is very gloomy."

He further said universities are running under the guidance of committees instead of full-time vice chancellors. This will, in the long run, deteriorate the system.

“Nobody is willing to take a call on filling vacancies, and guest lecturers are teaching entire courses. The damage we are witnessing now will impact our state in the future. We are merely forcing students to prepare, write exams, and get certificates. Imparting knowledge is a serious job, but it is being dealt with a lackluster attitude,” he rued.

Foreign student admissions

As the universities are plagued with various issues, the admission of foreign students has steadily decreased in the state over the years.

Anna University, for instance, allocates 200 seats every year for foreign students. Today, the number has fallen drastically.

“We hardly fill 40 seats every year. We have actually reduced the course fee by 50 per cent to attract students from least-developed countries like Africa nations, Bangladesh, and Afghanistan. It is hard to convince students from other countries to take admission here without having attractive features,” said a senior professor of Anna University, who did not want to reveal his name.