The cash-strapped Madras School of Economics (MSE) has a got a boost with Union Finance Minister Pranab Mukherjee announcing a grant of Rs.10 crore while presenting the budget for 2011-12 on Monday.

The MSE has drawn up a proposal for expansion work at a cost of about Rs. 7 crore and obtained approval from the Chennai Metropolitan Development Authority for its plans. The work, expected to be completed in a year's time, includes the setting up of a new academic block, a library block and students' hostel. The academic block will comprise 16 faculty rooms, 200-seat auditorium and six lecture halls.

Talking to TheHindu, D.K. Srivastava, Director, MSE, said: “We are operating more or less on a balanced budget.

We have made several representations to the Finance Ministry seeking funds for our capital expenditure, as we don't get recurring grants either from the Centre or State governments or from any other source. Our expenses are met out of the interest income earned from a corpus fund. This amount is sufficient for the time being and we will write to the Centre once again.”