Palampur Agricultural University Faces Severe Financial Crisis, Dues Mount
Palampur Agri Varsity in Financial Crisis; Staff Dues Mount

Palampur Agricultural University Confronts Deepening Financial Turmoil

Chaudhary Sarwan Kumar Himachal Pradesh Krishi Vishvavidyalaya (CSKHPKV), a premier agricultural institution in Palampur, North India, is embroiled in a severe financial and administrative crisis. The university is struggling to meet its financial obligations, with mounting dues towards employees and pensioners escalating to a staggering Rs 112 crore, as recently admitted in court proceedings.

Mounting Liabilities and Legal Actions

Naresh Sharma, general secretary of the Non-Teaching Employees Association at HPKVV, disclosed that these pending liabilities encompass arrears, allowances, leave encashment, revised pensions, pension commutation, and other statutory dues for both teaching and non-teaching staff. In response, over 350 serving employees and pensioners have sought judicial intervention, prompting courts to issue directives for the clearance of these outstanding amounts. However, the university has been unable to fully comply due to acute financial constraints.

A senior university official, speaking anonymously, highlighted that outstanding liabilities are increasing annually by approximately Rs 25 crore. This persistent deficit stems from a widening gap between actual expenditures and the grant-in-aid received from the state government, severely hampering the institution's ability to fulfill routine financial responsibilities. Despite submitting detailed figures to higher authorities in Shimla, the necessary grants have not been released.

Decline in Research Funding and Academic Impact

The financial strain has significantly impacted research and teaching activities. The state government has discontinued an annual grant-in-aid of Rs 2.5 crore for research, which was previously provided. Currently, the university receives minimal direct financial support from the state for educational initiatives, exacerbating the crisis.

During the tenure of former Vice-Chancellor Prof Ashok Kumar Sarial, research funding at the university soared from about Rs 40 crore per year to nearly Rs 100 crore annually. This period was marked by enhanced research infrastructure, international exposure for scientists and students, increased employment through project staffing, and an improved academic environment. In recent years, however, project funding has sharply declined, leading to a slowdown in research activities, reduction and termination of project staff, and limited career advancement opportunities for young researchers.

Administrative Vacancies and Ranking Slip

The university has been operating without a regular Vice-Chancellor for nearly two-and-a-half years, further complicating long-term planning and policy decisions. Concurrently, recruitment of teaching and non-teaching staff has not kept pace with retirements, with an estimated 90 employees retiring annually without corresponding hires.

These challenges have adversely affected the university's national standing. Once ranked 11th at the national level in 2019-20, it has recently slipped to the 29th position in 2025, reflecting the broader impact of financial and administrative woes on its academic reputation.

The situation underscores the urgent need for intervention to sustain this key agricultural university's contributions to education and research in Himachal Pradesh.