Explainer: What does Haryana government's decision to provide loan instead of grant-in-aid mean for HAU

The decision of the state government to change the mode of financial assistance from grant-in-aid to loan to the state universities, including the Chaudhary Charan Singh Haryana Agricultural University (HAU), has evoked strong reactions from academicians. Though there have been murmurs of dissent within the administration of universities, they have not lodged an official protest on the issue till now.What is the new mode of financial assistance to state universities and when was it introduced?The state government used to release grant-in-aid to the state universities under Budget Head 2202, which is meant for grant-in-aid. However, in the third quarter of 2022-23 financial year, the government granted the financial assistance under Budget Head 6202, which pertains to loans. Subsequently, all the state-run universities are being provided financial assistance under Head 6202, thus being granted loans.How much loan has been granted to HAU till now?HAU has a total loan liability of Rs 2,424 crore till this financial year. The state government has provided a loan of Rs 428.85 crore in 2022-23, Rs 608.35 crore in 2023-24, Rs 637 crore in 2024-25 and Rs 750 crore in 2025-26. Similarly, other state universities, too, have accumulated collective loans to the tune of thousands of crores.What impact will it have on HAU in future?The academicians and retired scientists of HAU fear that it will spell financial disaster for the university, which has been a backbone of the state’s agricultural growth since the 1970s when it was established in Haryana. They argue that the university has the mandate of research and dissemination of research and technology in the field of agriculture, which helped in ushering in the Green Revolution in this part of the country. The mounting loans would have a negative impact on research and related works. They fear that over the years the loan will keep accumulating and could one day lead to a situation where the university may be branded a financial liability.Has there been any protest against this mode of financial aid?There was a protest from certain quarters when the arrangement was introduced in 2022-23. The state government at the time had assured of continuing the grant-in-aid as the mode of financial assistance. However, later it clarified that this is a perpetual loan, which the institutions need not return. But the academicians suspect that it could lead to financial distress for the universities.How can HAU become financial self-sustainable?Agricultural scientists maintained that HAU’s sustained efforts in developing seed varieties has generated revenue far exceeding the entire grant provided by the government to the university. Even now, it can generate funds by selling seed varieties and technology, but it will badly impact the end user, the farmer, as the input costs will increase exponentially. So, they turned down the idea of selling seed and other technology in the field of agriculture, horticulture and animal sciences. A government spokesperson did not respond to calls for a comment on the issue.

Explainer: What does Haryana government's decision to provide loan instead of grant-in-aid mean for HAU

There have been murmurs of dissent, but no official protest has been lodged so far

Deepender Deswal

Explainer: What does Haryana government's decision to provide loan instead of grant-in-aid mean for HAU

There have been murmurs of dissent, but no official protest has been lodged so far

Deepender Deswal

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