Delhi University Sees Revenue Shift as Student Fees Double

Delhi University Sees Revenue Shift as Student Fees Double

Last Updated Oct - 22 - 2024, 04:51 PM | Source : India Today | Visitors : 34

Delhi University’s student fee revenue has doubled in five years, surpassing Rs 200 crore for 2023-24, while UGC funding's share has decreased from 83% to 77%.

According to data from Delhi University's finance department, student fee revenue has more than doubled over the last five years and will exceed Rs 200 crore in the fiscal year 2023-24. In contrast, funds from University Grants Commission (UGC) grants have shown a steady but slower increase, with their share of DU's overall funding falling from 83 percent in 2019-20 to 77 percent in 2023-24.

DU’s internal revenue, primarily derived from student fees, grew from nearly Rs 100 crore in 2019-20 to over Rs 200 crore in 2023-24, indicating a shift in the university’s reliance on student-generated funds.

Despite the increase in UGC funding, which rose from Rs 600 crore in 2019-20 to just under Rs 800 crore in 2023-24, the overall contribution of public funding to DU's budget has declined.

A professor at DU pointed out that total receipts now exceed the university’s expenditures, a trend that has emerged over the past two years, suggesting underutilisation of available funds. DU imposed a significant fee hike in July 2023 across its degree programmes, including a 60% increase in PhD course fees, after an earlier fee hike in December 2022. Critics argue that these hikes are intended to cover the interest on loans taken from the Higher Education Financing Agency (HEFA).

HEFA, a collaboration between Canara Bank and the Ministry of Education, provides financial assistance for infrastructure development in premier educational institutions. DU received a Rs 930 crore loan from HEFA in October 2022, with the university responsible for paying 10% of the interest while the Central government covers the remaining 90 percent.

Abha Dev, secretary of the Democratic Teachers' Front, expressed concern that the growing emphasis on student fees as a revenue source could make education inaccessible for many. She also stressed the need for an investigation into how funds from HEFA loans are being used.

As part of its Institutional Development Plan (IDP) 2024-2047, DU has outlined strategies to generate revenue from both internal and external sources. These include renting out existing facilities, setting up souvenir shops, creating endowment funds through alumni and industry collaborations, and establishing research chairs sponsored by multinational companies. An Investment Committee may also be established to oversee and evaluate financial plans.

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