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LU faces financial crunch, salary hike may be on hold

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Express news service

Posted: Sep 05, 2008 at 0259 hrs IST

Lucknow, September 4 Deep in a financial crisis, Lucknow University (LU) might find it difficult to implement the recommendations of the Sixth Pay Commission unless the state government decided to pitch in with liberal financial assistance.

According to the university authorities, the recommendations will push up the university’s annual wage bill by Rs 9 crore. While the government is committed to implement the Pay Commission’s recommendations, it has not stated as to how the university is going adjust with the burden.

“The university just cannot take this financial burden on its own. I am going to write to the Higher Education Department to hike the salary grants for the university by at least Rs 9 crore,” said J Prasad, Finance Officer, LU.

In the current year, the university is facing a deficit of Rs 12 crore. “The government had frozen the university’s grants of Rs 16.40 crore in 1999. Since then, the university has repeatedly requested the government to release the grant,” said Prasad. Asked about the problem, Higher Education Minister Rakesh Dhar Tripathi did not want to discuss about the financial condition of the university as well as whether the government would release the pending grants.

“Whenever the Sixth Pay Commission is implemented in the state, it will be applicable to all universities and colleges as well,” said the minister.

The university’s annual expenditure is Rs 36 crore, with the only source of income being the tuition fees, which is inadequate to meet the shortfall after taking into account the government grants.

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