MKU seeks ₹700-cr. grant to manage financial stress

University’s corpus fund is now only ₹82 cr.


Madurai Kamaraj University has approached the Higher Education Secretary seeking a one-time grant of ₹700 crore as there are only limited internal resources to pay pension to retired staff.

The university which created a corpus fund in 2004, specifically to pay pensioners initially, had ₹221 crore, and now it has now come down to ₹82 crore.

Speaking to The Hindu, Vice-Chancellor M. Krishnan said that the Secretary sought a detailed report on the number of pensioners on the university’s payroll and how much money was currently available with the university.

“Since the amount has shrunk, we are seeking a joint account in the name of the university and the State government. We can pay the pension amount with the interest generated,” he said.

The Vice-Chancellor met the Secretary on Wednesday for the university’s finance committee meeting.

Different associations, including Madurai Kamaraj University Faculty Association (MUFA) and Madurai Kamaraj University Administrative Staff Association (MKUASA), too made representations to Ministers, seeking the grant.

The letter from the MKUASA said that there had been no marked improvement in the university’s resources, which came mainly from tuition fees, examination fees and 15% contribution from distance education revenues.

A letter from MUFA office-bearers said that the income had come down due to stiff competition as all universities in the State had already begun their distance learning programme.

“Constant and indiscriminate withdrawal from the corpus fund for payment other than terminal benefits has reduced it to ₹ 82 crore,” the letter added.

Currently, there are about 1,200 pensioners attached to the university, according to the association members.

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Printable version | Jun 7, 2020 7:45:28 AM |

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