CHENNAI: The 161-year old University of Madras is on the verge of financial collapse. The senate of the university was informed on Saturday that the university will seek a bailout package from the state government to tide over the current financial crisis.
The university could not pay any retirement benefits to staff members retired last year.
If the help does not arrive in two or three months, the world famous university which has produced six former Presidents and two Nobel Laureates and many other distinguished alumni will struggle to even pay the salary for the faculty members.
The university has presented Rs 203 crore budget for 2019-20 with the deficit of Rs 84.92 crore. The deficit is largely due to the increased financial burden after implementing seventh pay commission scales of pay for teaching, non-teaching staff, pensioners.
“Due to the implementation of seventh pay commission, our expenditures increased by about Rs 3 crore per month which resulted in a huge deficit in university’s non-plan account,” P.Duraisamy, vice-chancellor of Madras University, informed members of senate on Saturday.
“We will seek financial support from the state government for payment of pension and retirement benefits of our staff in the old pension scheme,” the vice-chancellor added.
Members of the senate appreciated vice-chancellor Duraisamy for managing the financial crisis successfully so far.
They also urged him to take measures to receive full salary grant from the state government....