Date:10/11/2007 URL: http://www.thehindu.com/2007/11/10/stories/2007111059110100.htm

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University evolves fiscal prudence model

Shastry V. Mallady

MADURAI: A fiscal prudence model evolved by Madurai Kamaraj University has created a corpus of Rs.180 crore deposited now with the Reserve Bank of India.

The administration adopted measures in the last three years to enhance the corpus and the amount was saved after obtaining permission from the Finance Committee of the Government. The prime aim was to make a permanent arrangement for staff’s pension.

“We are among handful of universities to have a huge corpus in fixed deposit. Now, we need not worry about pension amount for the next 25 years. It is important for a university to have a separate pension fund,” Vice-Chancellor, P. Maruthamuthu, said on Friday.

According to him, the exclusive pension fund was created by pooling in the money available under various heads in the university account. Besides, other sources were tapped to increase the corpus amount which stood at Rs.110 crore three years ago.

“Whenever a distance education centre is opened, the varsity receives a deposit amount from the individuals who manage the centre and that was channelled to the corpus fund. Similarly, the course affiliation fee collected from affiliated colleges was added to it,” I. Singaram, Registrar, said.