Nod to ₹22-cr grant for clearing Dec salaries

PATIALA: The state finance department has approved a special grant of ₹22 crore to cashstrapped Punjabi University to meet its committed expenditure, including payment of salary and pension.

The financial crisis in the varsity is so acute that this is the third time that a special grant has been given this fiscal. In July and October 2019, ₹20 crore each had been given.

The monthly salary and pension bill is ₹33 crore, with the varsity receiving a grant of ₹10 crore per month from the state government. With December payment pending, teaching and non-teaching employees have been protesting on the varsity campus.

The varsity had approached the finance department and higher education department for the special grant. “The salary and pension of employees will be cleared soon, as the finance department has approved the special grant. The funds will be sanctioned soon,” said officiating vice-chancellor Ravneet Kaur. She added brainstorming was on to strengthen the varsity’s finances.

For 2020-21 fiscal, the varsity’s expenditure is pegged at ₹676 crore, against the expected income of ₹380 crore, leaving a massive deficit of ₹296 crore.

The university also has an overdraft of ₹140 crore, which is expected to touch ₹150 crore by the end of the year.

Punjabi University Teachers’ Association (PUTA) president Nishan Singh Deol said instead of making stop-gap arrangements every month, both the state government and university should come up with sustainable ideas and solutions to deal with the financial crisis.

“The varsity should strongly put forward its case on its financial condition before the state government and seek a special bailout package of at least ₹400 crore at the earliest. This will help the varsity clear its liabilities, mainly its bank loan,” he said adding that members of the teachers’ body had to protest every month to get salaries released. “This trend is not suitable for the academic atmosphere of the varsity, but here teachers need to protest for their basic rights,” he said.

The varsity should seek a special bailout package of at least ₹400 crore to clear liabilities NISHAN SINGH DEOL, President, Punjabi University Teachers’ Association