Fund crunch at IIT's - TOI article - 18/01/2008

Reserves fill Rs 30-cr gap

TIMES NEWS NETWORK

Mumbai: The current fundcrunch in the IITs repeats itself from one campus to another.
Hefty donations from alumni and corporates are being ploughed into the IITs to build infrastructure and set up research programmes, but this cannot conceal the fact that government grants for regular expenditure on water, power, materials for labs, etc, are not in keeping with rising costs.
In the last three year, IITBombay, as a result, has drawn Rs 30.89 crorefrom its endowment fund to meet the shortfall in non-plan expenditure.
“This is not conducive for an institution that depends on its savings from capital expenses for future growth,’’ said a senior professor. “The money that has been saved over the years is meant for expansion, not for running the institute on a day-to-day basis.’’
The endowment fund is made up of savings accumulated for upgrading facilities and infrastructure. IIT-Kanpur director Sanjay Dhande pointed out that his institute had also been utilising a part of the interest earned on the reserves. The IITs have now asked the HRD ministry to not just replenish their endowment fund, but also increase the allocation of grants by 30% year-on-year.
Despite the prestigious status of these colleges, the government currently pays paltry salaries to IIT faculty members. Realising the mismatch, alumni across IITs have provided financial help to offer bonuses to professors. Like the class of ‘82 at IIT-B has given the institute Rs 4 crore so that the Powai school can continue to attract good faculty and offer a signing bonus to them.
Similarly, at IIT-Delhi, Kanpur and Madras, alumni have contributed to faculty funds, so that the institute can offer higher compensation to achievers.
Sources said that the IITs have been appraising the HRD ministry about the fund crunch regularly, but officials have been looking the other way.
“The endowment savings are set aside for development works, but all the IITs have been drawing money from them since the last three years,’’ said another IIT director.
hemali.chhapia@timesgroup.com