Union Cabinet Approves Budgetary Support of Rs. 4,200 Crore for MERITE Scheme to Boost Technical Education.
National
On August 8, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the implementation of the Central Sector Scheme (CSS) – Multidisciplinary Education and Research Improvement in Technical Education (MERITE) Scheme. The scheme targets 275 technical institutions, including engineering colleges and polytechnics, aiming to enhance quality, equity, and governance in line with the National Education Policy (NEP) 2020.
- The MERITE Scheme will be implemented in 275 technical institutions comprising 175 engineering colleges and 100 polytechnics. It aligns with NEP 2020 to improve standards in technical education, with a duration from 2025–26 to 2029–30.
- The total financial outlay for the scheme is Rs. 4,200 crore, of which Rs. 2,100 crore will be sourced as a loan from the World Bank. This funding will focus on infrastructure development, digital transformation, and academic excellence.
- Under the scheme, 275 government and government-aided technical institutions such as National Institutes of Technology (NITs), State Engineering Institutions, Polytechnics, and Affiliated Technical Universities (ATUs) will be selected, benefiting approximately 7.5 lakh students.
Main Point :- (i) The MERITE Scheme will also extend support to state and Union Territory (UT) departments responsible for handling the technical education sector, enabling them to implement reforms and modern educational practices.
(ii) Key outputs of the scheme include the adoption of digitalization strategies in participating states/UTs, development of guidelines for multidisciplinary programs, improved employability skills, and an increased transition rate of students into higher studies or employment.
(iii) By fostering stronger research and innovation ecosystems, the MERITE Scheme aims to establish an enhanced learning environment, encourage industry-academia collaboration, and contribute to India’s long-term vision of a skilled and innovation-driven workforce.
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