PU expecting revenue shortfall of ₹93 crore

Varsity is expected to lose around ₹75 crore from non-conduct of exams of one semester alone

CHANDIGARH: With the pandemic outbreak and the resultant lockdown wreaking havoc to the economy, Panjab University (PU) is staring at a shortfall of about ₹93 crore in funds this year.

A committee, formed curtail the university’s spending, stated this during a meeting on Thursday.

The committee, led by dean university instructions (DUI) RK Singla, also suggested that the university will be able to save ₹21 to 29 crore through cost-cutting measures, which were approved during the meeting.

Due to the present circumstances, the university is not expecting examination fee of both semesters of the academic session 2020-21. According to the estimates, prepared by the finance and development office of the university, tabled in the meeting, the loss due to examination fee for one semester is estimated at ₹70-75 crore.

The projected flow of revenue may also get affected as the varsity is expecting an adverse impact on fresh admissions. As the university has decided that classes for the first semester of session 2020-21 will be conducted online, it is not expecting to get hostel fee for at least six months, which comes to around ₹5 to 6 crore. The loss in rotation of the

test is expected to be ₹3 to 4 crore while the loss due to drop in admissions will be around ₹7 to 8 crore.

The proposal for a partial salary cut was also discussed during the meeting of the panel but it was not approved by the committee. A member of the panel, on condition of anonymity, said, “We have suggested that the university may cut down the expenditure and take loan on internal assets which will be returned when possible.”

WAY OUT FOR PU

During the meeting of the panel, cost-saving measures were also discussed to make up for the losses due to the present circumstances. According to the estimates, ₹17 to 22 crore can be saved if the university conducts the examination of one semester. Cost cutting on electricity and other miscellaneous charges was estimated at ₹2 to 3 crore and ₹1 to 2 crore respectively. Besides this, ₹1 to 2 crore can be saved from administrative expenditure.