New Delhi, June 30: Universities may now receive funds based on their actual needs rather than the whims of education officials.

The University Grants Commission (UGC), which funds central institutions of higher learning, plans an institute where researchers will assess the requirements of universities.

The UGC has frequently faced allegations of being “unable to explain” why certain universities receive less money per student than others (see chart). Delhi University, which has more students than any other, has long complained of “stepmotherly treatment”.

“If things go according to plan, there will no longer be any scope for allegations of favouritism. The funds allocation will be explained by the evaluation of the researchers,” a UGC official said.

The Planning Commission has cleared the proposal for the Higher Education Institute for Research, Policy and Programme, to which professionally trained researchers will be recruited. It is likely to be set up and start providing its estimates in a couple of years.

UGC funding falls in two categories: recurring, which is provided annually, and a one-time non-recurring grant for improving infrastructure.

The non-recurring grant, therefore, varies from one university to another. For instance, an engineering or medical college needs laboratories, which a college teaching only humanities does not.

The competition for funds has largely been about the recurring grants. Institutions such as DU and the Shillong-based North Eastern Hill University (Nehu) argue that the figure per student should be the same for every university. (The figures in the chart have been arrived at by dividing the recurring funds the universities have been receiving by their number of students.)

“The UGC has repeatedly been unable to explain to us why we receive such paltry funding in the recurring category compared with other central universities,” a senior DU official complained.

The reservation oversight committee headed by Congress MP Veerappa Moily, too, had discussed the problems universities face because of what one vice-chancellor has described as “completely irrational funding”.

While Banaras Hindu University receives around Rs 2.4 lakh a year per student, the figure is Rs 67,000 for DU. Nehu, which the UGC has marked as a “university with potential”, receives only Rs 14,000 per student. BHU, UGC officials say, receives more money than others because of its large engineering section.

The IITs and the IIMs receive less per student in the recurring category than BHU, largely because they also receive significant funding from other sources, such as strong alumni associations and tie-ups with private companies.

While the IITs receive Rs 1.85 lakh per student, the figure is Rs 1.5 lakh for the IIMs.

The Higher Education Institute for Research, Policy, and Programme will also evaluate the implementation of UGC programmes in universities and colleges.