The Odisha government has provided significant relief to non-government higher educational institutions by substantially reducing the mandatory pledge money requirement. Colleges are now permitted to withdraw excess deposits that were locked with the higher education department, allowing them to utilize these funds for infrastructure development and institutional strengthening.
Revised Pledge Money Norms
According to a notification issued by the department on Monday, non-government unaided, self-financing, and professional colleges will now be required to maintain a pledge money of Rs 5 lakh. In contrast, non-government aided colleges, including those receiving block grants, need to maintain only Rs 1 lakh. Institutions that have deposited amounts exceeding these limits are eligible to withdraw the surplus funds, including accrued interest in the case of fixed deposits. Previously, over a decade ago, the pledge money for non-government unaided and self-financing colleges was close to Rs 15 lakh.
Changes in Current Account Requirements
The government has also eliminated the requirement of maintaining a prescribed minimum balance in current accounts. However, institutions must ensure that sufficient funds remain available to meet employees' salary obligations for at least two months. The department specifies that the withdrawn amount can be used only for institutional development and strengthening.
Permissible Uses of Funds
For unaided and self-financing colleges, the funds may be spent on infrastructure development, installation of CCTV systems linked to centralized monitoring platforms, fire safety measures, procurement of furniture, construction and renovation works, and improvement of academic and student facilities. Aided colleges are also allowed to utilize the released funds for priority areas such as CCTV installation, fire and safety infrastructure, strengthening laboratories and libraries, procurement of classroom and hostel furniture, and renovation of academic buildings.
Procedure for Withdrawal
Officials stated that to access the funds, institutions must submit a detailed utilization plan to the regional director of education (RDE). The RDE will examine the proposal and approve the withdrawal after assessing the institution's requirements. Colleges will subsequently be required to submit utilization certificates and supporting documents, while the RDE retains the power to inspect and verify the use of funds.
Eligibility and Conditions
The department has made it clear that institutions operating under temporary or prolonged provisional recognition, and those that have not fulfilled conditions relating to land, buildings, and other mandatory infrastructure, will not be eligible to withdraw excess deposits until such deficiencies are rectified. Additionally, the department mandates the installation and operationalization of CCTV camera systems in accordance with government-prescribed standards to facilitate uniform monitoring at the state level.
Penalties for Misuse
To prevent misuse, the department has warned that diversion of funds or failure to discharge academic responsibilities towards students could invite stringent action, including withdrawal of recognition, closure of institutions, recovery of funds, and legal proceedings under applicable laws. Furthermore, in the event of an institution's closure, 50% of the pledge money will be liable to be forfeited by the government.
