The universities in Kerala are facing an acute financial crunch after the State Government canceled one monthly installment of grants due to them. A total of Rs 91 crore was slashed across six universities. This move would affect the disbursement of salary and pension.

The Department of Higher Education has informed the University registrars that one installment of the non-plan grant for Kerala University, Mahatma Gandhi University, Calicut University, Sanskrit University, CUSAT and Kannur University has been canceled.

The government has to give Kerala University Rs 30 crore, Calicut University Rs 20 crore, Mahatma Gandhi University Rs 16 crore, CUSAT Rs 14 core, Sanskrit University Rs 6 crore and Kannur University Rs 5 crore

Even the funds sanctioned by the UGC for the research projects cannot be withdrawn on time, claimed project directors. This happened after implementing the government directive to immediately transfer to the treasury the amount deposited by the universities in their State Bank of India accounts, they said.

As per the government directive universities should now pay their salary and pensions by withdrawing their fixed deposits or from the project fund sanctioned by the University Grants Commission or by taking an overdraft from the bank.

The government had earlier directed the universities to establish a special pension fund by increasing internal resource mobilization. But the government itself froze this order.