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This is an archive article published on July 21, 2010

Sibal seeks PM aid on stuck projects

Road Transport and Highways Minister Kamal Naths recent outburst against the Planning Commission was not an isolated case.

Road Transport and Highways Minister Kamal Naths recent outburst against the Planning Commission was not an isolated case. There is friction between the Plan Panel and several other ministries,including the Kapil Sibal-led HRD Minsitry.

Three of the HRD proposals have run into roadblocks posed by the Planning Commission and the Ministry of Finance,and Sibal is learnt to have sought the intervention of Prime Minister Manmohan Singh on the issue.

Sources confirmed to The Indian Express that Sibal had written to the PM seeking his intervention on three stuck schemes including the proposal to set up 20 new IIITs (Indian Institutes of Information Technology) on PPP basis,which was shot down by the Finance Ministry earlier this month. Of the other two stuck projects,one is meant to finance state universities and colleges,and the second is a Rs 2,000-crore scheme to set up 2,500 vocational schools across the country.

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The PMO has now asked the Planning Commission to re-examine the projects.

Sibal is learnt to have brought to the PMs notice how these projects were key to increasing the Gross Enrolment Ratio (GER) in higher education. India is looking at a GER target of 20 per cent by 2020 against a dismal 12 per cent at present.

Sibals letter follows the recent jolt that the HRD ministry got when the Finance Ministry rejected its proposal to set up 20 new IIITs in this plan period and said the project should only be taken up in the 12th plan. The HRD Ministry envisages setting up of 20 new IIITs on PPP model and on a 85:15 fund-sharing format between the government and the industry respectively.

If the IIIT proposal has met with resistance,the ministrys proposal shared with all state governments last year to incentivise states for setting up new universities and colleges has also hit a roadblock. The proposal is to provide Central assistance to state governments to the tune of 1/3rd of the capital cost for setting up of new universities and colleges and also for expansion of existing institutes. The state governments will be required to bear 2/3rd of the capital cost and recurring expenditure. In fact,states have already been asked to identify land and suitable locations for these new institutions and also prepare detailed project reports.

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