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New Delhi: The Ministry of Education (MoE) has clarified that under the proposed Viksit Bharat Shiksha Adhishthan (VBSA) Bill 2025 the feedback of the Regulatory Council on institutional performance will play a major role in determining the funds allocated to higher educational institutions (HEIs).
In an official statement, the ministry stated that the revised funding mechanism is designed to ensure greater transparency and public accountability while maintaining a clear separation between regulatory and funding functions as planned under the National Education Policy (NEP) 2020.
As per the MoE, the Regulatory Council under the proposed VBSA framework will assess institutional performance and provide feedback to the ministry. This feedback will become the major factor guiding fund distribution to HEIs through the MoE rather than through a regulatory body.
'This change in funding mechanism has been adopted to ensure transparency and public accountability,' the ministry stated in its press release.
However, the ministry clarified that academic and research support mechanisms will largely remain unchanged. Fellowships such as the Junior Research Fellowship (JRF) and Senior Research Fellowship (SRF) will continue to be disbursed through systems similar to those currently in place.
At present, grants to central universities are disbursed through the University Grants Commission (UGC) with funds released quarterly by the MoE and then transferred monthly to universities. Institutes of National Importance (INIs) on the other hand, receive funds directly from the Government of India monthly.
Under the VBSA Bill, this structure will change. In line with NEP 2020, the bill proposes that grant disbursal will no longer be handled by regulatory or academic councils.
'The function of disbursal of grants to the centrally funded HEIs shall be accordingly ensured through mechanisms devised by the Ministry of Education (MoE) which will be similar to or better than the existing mechanisms,' the statement reads.
