DAVV for scrapping term self-financing scheme

FPJ Bureau | Updated on: Thursday, May 30, 2019, 12:13 PM IST


Indore : Citing discrimination between regular staff and self-financing staff, custodians of Devi Ahilya Vishwavidyalaya (DAVV) have decided to do away with word “self-financing scheme” stating that the term has become irrelevant in today’s scenario.

In a meeting of heads of teaching department on Wednesday, it was decided that a proposal would be sent to coordination committee – the apex body of higher education in the state – requesting it to amend statutes and regulations for treating all university staff as regular staff.

Vice-chancellor Dr Narendra Dhakad has constituted a 10-member committee led by School of Biotechnology head Anil Kumar which will study all statutes and regulations and suggest amendments. Those amendments will be put before academic council and executive council of the university for their nod before being sent to the coordination committee.


Dhakad admitted to considering such development but was reluctant to share details of it.

“As of now, I can only say that something of this sort is under consideration,” he said.

An HoD wishing anonymity stated that consensus has been achieved among university officers and HoDs on doing away with term self-financing scheme.


In 1990-91, the university had established International Institute of Professional Studies (IIPS) for running self-financing courses.

The idea was that the institute would be run only through resources generated from fees of students admitted to this institute.

Fee of this institute was three to four times more than fee of other teaching departments. The idea turned out to be a major success, so on the same lines, the university established Institute of Engineering Studies, School of Pharmacy, School of Law and School of Commerce.


These departments/institutes run self-financing courses and generate lot of money to the university. Seeing success of self-financing courses, other departments also started self-financing courses among which were Institute of Management Studies, School of Computer Science, School of Economics, to name a few.

These departments/institutes became a major source of generating funds and self-financing scheme made the university self-reliant.

Difference between self-financing staff and regular staff

While regular staff was approved by University Grants Commission and State government, staff appointed under self-financing scheme was appointed in the university following nod given by the state government.

The condition for appointment of regular staff was that the UGC would pay salary of the staff for a period of five years and later on the entire expenditure of them would be borne by state government, whereas, the university would have to pay from its resources salary of the staff appointed under self-financing scheme.

A major condition of self-financing scheme was that the staff appointed under the scheme would be relieved when the course for which it was appointed is discontinued. Due to this condition, a domiciles sword always looms large over self-financing staff.

What change will take place?

If self-financing scheme would be scrapped, all staff irrespective of under which scheme they were appointed would be considered as regular staff. This means that self-financing staff would not be relieved even when the course for which they were appointed would be discontinued. As many as 245 teaching and 253 non-teaching staff under self-financing scheme would be benefited from this change.

Govt grant to DAVV

The government pays an annual grant of Rs 6.5 crore to DAVV for payment of salary and maintenance of university. Of that amount, Rs 2 crore goes to PF account and a corpus setup for disbursement of gratuity. The remaining Rs 4.5 crore is sent on payment of salary of university employees.

“The university spends over Rs 2.5 crore on payment of salary of its employees per month. This means that the government pays for salary of nearly-one-and-a-half-month only. Salary for rest of the year is paid by DAVV from its own sources,” an officer said. He said that the government is expected to stop Rs 6.5 crore grant also in future and direct university to pay salary of its employees from its own resources.

“In anticipation of that, the university has decided to scrap self-financing scheme and treat teachers appointed under this scheme as regular employees,” the officer stated.

Will govt accept DAVV’s proposal?

The government has drawn a clear line between self-financing staff and regular staff. It pays for salary of regular staff only and funds generated by the university are spent on payment of salary of self-financing staff.

As DAVV is self-reliant it can afford to pay for salary of all the staff, be it regular staff or self-financing staff, through its own resources but all universities in the state are not in that position. So, the coordination committee is unlikely to accept DAVV’s proposal. “It will also not permit DAVV to be an exception,” said a senior professor wishing anonymity.

Benefits of the idea

Benefit of this idea of ending discriminating among self-financing staff and regular staff is that all will be treated as equal in the university system. Secondly, all departments will become eligible for grants from UGC and other funding agencies, if term self-financing will be scrapped.

A professor explains: For instance, UGC awards special assistance programme (SAP) to those teaching departments that runs regular courses. “Those generating funds on their own are not considered for SAP scheme as it carries grant of crores.”

Two years ago, School of Economics, which runs self-financing courses, was awarded SAP. However, its grant was stopped when somebody informed the UGC that School of Economics is a self-financing department. The department later convinced UGC that it was not a self-financing department but only offers a few course under the scheme.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Friday, October 07, 2016, 12:20 AM IST