New Delhi: A special grant of Rs 10 crore for the Madras School of Economics (MSE) announced in the Union budget by the Finance Minister Pranab Mukherjee in February is in limbo with the Ministry of Human Resource Development (HRD) expressing inability to release funds.

The HRD has said the funds would not be released till MSE is recognized by the University Grants Commission.
In his budget speech, Finance Minister Pranab Mukherjee had announced a special grant of Rs 10 crore to the MSE whose Chairman C Rangarajan also heads the Prime Minister’s Economic Advisory Council.

The Finance Minister’s announcement remained on the paper only as the UGC provides grants to private institutions if they are covered under Sections 2(F) and 12(B) of the UGC Act, which recognizes them as eligible for the grants.

MSE is not billed to be eligible for the grant as it did not fit in the frame of the UGC Act. Sources said the HRD has apprised the Finance Ministry as well as MSE of the eligibility criteria for funds.

The Ministry has suggested the MSE to apply for recognition under the Section 2(F) and 12(B) by the UGC. Once the MSE gets recognition by the UGC, the HRD will grant funds to them, sources added.