The letter, written in November last year, points out: "The scope of improvement in management of finances of the universities has been engaging the attention of the state government." Kashyap has referred to a meeting of V-Cs with the state government in 1993, in which it was decided that an increase of annual grants to universities would be limited and "universities would raise some financial resources on their own", sources point out. The finance secretary has, however, observed that PU has "not adhered to these norms".

The government, sources point out, has communicated to the university authorities that the grant for 1999-2000 remains Rs 16.46 crore (same as for 1998-99) and that PU should limit its expenditure accordingly. It has also directed the university to "bring up a plan of gradual reduction in its dependence on the government and seek prior approval in filling non-teaching posts".

The Board of Finance is slated to "discuss" the Finance Secretary's communique at length and formulate a plan of action accordingly, sources point out. Other issues include considering a proposal for hiring staff performing duties like security, sanitation and horticulture on contractual basis, sources add.

The members are also likely to raise the issue of some revenue raising departments failing to do so. The members will also discuss the Special Assistance Programmes grants of over Rs 10 lakh provided by the University Grants Commission (UGC) for the mathematics and chemistry departments.