Cabinet approves Rs 4,200 cr budgetary support for MERITE scheme to reform technical education

New Delhi [India], August 8 : The Union Cabinet, led by Prime Minister Narendra Modi, has approved the 'Multidisciplinary Education and Research Improvement in Technical Education' (MERITE) scheme with a budget of Rs. 4,200 crore.

According to the Cabinet press release, Rs. 2,100 crore will be financed through a loan from the World Bank.

The initiative is aligned with the National Education Policy 2020 and is being launched as a Central Sector Scheme, meaning it will be fully funded and executed by the central government through a central nodal agency.

Aimed at uplifting academic quality and employability, the scheme will be rolled out across 275 government and government-aided technical institutions, including 175 engineering colleges and 100 polytechnics, between 2025 and 2030.

The expected outcomes are broad but focused. Among them are the introduction of digitalisation strategies, the development of guidelines for multidisciplinary technical programs, improvements in student learning and employability, and a stronger environment for research and innovation.

The scheme also emphasised improving governance and institutional accreditation mechanisms, two persistent weaknesses in many technical colleges.

At its core, MERITE is designed to tackle three major challenges in technical education: uneven quality, lack of access, and outdated governance structures. The scheme is expected to directly benefit around 7.5 lakh students across all states and union territories.

Participating institutions include the National Institutes of Technology (NITs), State Engineering Colleges, Polytechnics, and Affiliating Technical Universities (ATUs).

Additionally, state and UT departments overseeing technical education will receive strategic and financial support. Eminent institutions such as the IITs and IIMs, along with regulatory bodies like the All India Council for Technical Education (AICTE) and the National Board of Accreditation (NBA), are expected to play key roles in shaping and guiding implementation.

The government plans to align course content with current industry needs by updating curricula, promoting internships, and supporting innovation hubs, maker labs, and skill workshops. These interventions aim to improve placement rates and reduce the unemployment gap among engineering and polytechnic graduates.

MERITE will encourage the development of future academic administrators, with a specific focus on increasing the number of women in faculty and leadership roles.

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