Scholarship Amounts and Performance of Social Justice Ministry’s Schemes

Sub: Schemes

Sec: Education

Context

The House panel on Social Justice highlighted that the annual scholarship amounts offered to Scheduled Caste (SC), Other Backward Classes (OBC), Denotified, Nomadic and Semi-Nomadic, and Economically Weaker Section (EWS) students under various educational schemes are insufficient to cover the costs of quality education.
The panel recommended regular reviews of scholarship amounts to contain inflation.

Issues in Scholarship Disbursal

Delays in scholarship disbursal have been observed, leading to spillovers into the next academic session.
The budgetary allocation for educational scholarships has declined over the years:
- ₹7,830.26 crore in 2023-24
- ₹6,410.09 crore in 2022-23
- ₹3,403.51 crore till February 2025 (FY 2024-25)
Scholars have reported delays in fellowship disbursals under the National Fellowship for OBCs and SCs.

Underperformance of Other Flagship Schemes

The House panel observed that several flagship schemes of the Ministry related to livelihood assistance and skill training were underperforming, failing to meet spending and beneficiary targets.
Key schemes examined:
- PM-VISVAS (Interest subvention for income-generating loans)
  - Only 13.05% of allocated funds spent for SCs in FY 2024-25.
  - Only 8.3% of the allocated ₹11.95 crore spent for OBCs.
  - Government’s target of benefiting 15 lakh individuals by 2025-26 is difficult to achieve.
  - So far, ₹7.452 crore spent from ₹251 crore allocation, benefiting 47,809 OBC and 44,006 SC individuals.
- Venture Capital Fund for SCs and OBCs
  - SC category: ₹393.87 crore loans sanctioned to 143 SC-led companies (out of a ₹750 crore corpus).
  - OBC category: ₹94.08 crore loans sanctioned to 18 OBC-led companies (out of a ₹180.92 crore corpus).

Budgetary Allocation and Recommendations

72.5% of the Social Justice Department’s budget is spent on scholarships and educational schemes.
The committee urged the government to focus on other schemes as well and seek additional funds if needed.

Frequent Changes in Guidelines of Social Justice Schemes

The panel observed frequent changes in guidelines of several schemes:
- PM-AJAY (Pradhan Mantri AnusuchitJaati Abhyuday Yojana)- Focuses on infrastructure development and livelihood schemes for Scheduled Castes
- SHRESHTA (Scheme for Residential Education for Students in High Schools in Targeted Areas)-Provides residential education for SC students in quality private schools.
- NAMASTE (National Action Plan for Mechanised Sanitation Ecosystem)-Aims at eliminating manual scavenging and promoting mechanized sanitation.
- PM-VISVAS (Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayata Yojana)-Provides interest subvention on income-generating loans for SCs and OBCs.
The panel recommended that guidelines should be finalized only after stakeholder consultations to ensure effectiveness.

Scholarship Schemes for SC, OBC, Denotified, Nomadic & Semi-Nomadic, and EWS Students

Post-Matric Scholarship Scheme

Provides financial assistance to SC, OBC, and EWS students pursuing higher education beyond Class 10.
Covers tuition fees, maintenance allowance, and other educational expenses.

Pre-Matric Scholarship Scheme

Aimed at SC, OBC, and EWS students studying in Classes 9 and 10.
Helps in reducing dropout rates by providing financial aid for school education.

Top Class Education Scheme

Supports meritorious SC, OBC, and EWS students pursuing higher education in prestigious institutions.
Covers full tuition fees, living expenses, books, and computer allowance.

National Fellowship for SCs and OBCs

Provides fellowships to SC and OBC students pursuing M.Phil. and Ph.D. in recognized institutions.
Covers stipends and contingency grants for research scholars.

National Overseas Scholarship

Financial aid for SC, OBC, and Denotified, Nomadic & Semi-Nomadic Tribe students to pursue Master’s and Ph.D. degrees abroad.
Covers tuition fees, travel, visa, and living expenses.