Mangalore: After grappling with a financial crisis, Mangalore University has finally implemented strict financial discipline, making it eligible for government assistance.
In a conditional relief, the state government has released Rs 11.03 crore for disbursing pensions, benefiting 24 retired employees.
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The university had initially requested Rs 24 crore to provide pensions to employees who had served for 20-25 years before retiring. However, the government had made it clear that funds would not be allocated unless the university curbed its financial mismanagement.
Struggling with financial distress, the university had taken measures to cut unnecessary expenses over the past few months. Acknowledging these efforts, the government released Rs 11.03 crore. However, this amount is strictly meant for 24 employees who retired in the 2023-24 financial year, and their names have been specified in the official order. The government has warned of action against any misuse of these funds. Mangalore University’s financial crisis
Several challenges have contributed to the university’s financial strain. Many affiliated colleges have gained autonomy, reducing the fee revenue flowing into the university. Government grants have also been irregular. Additionally, postgraduate (PG) programs have been introduced in government colleges, affecting enrollments in Mangalore University’s campus courses.
When teaching staff retires, the university appoints guest lecturers using its internal resources. This practice has increased the financial burden on the university, leading to delays in pension payments. “Autonomous colleges no longer pay fees to the university, and the government has not been releasing adequate grants.
Meanwhile, postgraduate programs introduced in government colleges have led to lower student enrollment in the university’s own courses. The burden of hiring guest lecturers for vacant teaching positions has added to our financial difficulties, delaying our pensions,” said Prof. K.S. Jayappa, a retired faculty member from the Department of Marine Geology.33 retired employees still awaiting pensions
While pensions for several retirees from 2021-22 and 2022-23 were processed, six employees who challenged their cases in court have not received payments. Additionally, three employees faced documentation issues, preventing them from receiving full pension benefits. With the inclusion of 24 retirees from 2023-24, a total of 33 employees are yet to receive their due pensions. While the latest government grant provides relief to 24 of them, the remaining cases are still pending resolution. Strict cost-cutting measures at the university
To comply with financial discipline, Mangalore University has imposed multiple cost-cutting measures, including:
- Repairing and utilizing existing solar panels to reduce electricity bills.
- Disconnecting unused landline connections that incurred Rs 60 lakh in annual charges.
- Minimizing paper usage by implementing an e-office system.
- Restricting expenses on refreshments and meals during university meetings and events.
- Enforcing strict budget limitations for program funding.
- Transferring the financial responsibility of managing constituent colleges back to the government.
- Reducing non-essential staff positions to cut salary expenses.
- University’s financial discipline earns government trust
“In the past, Mangalore University incurred unnecessary expenditures, including conducting events without government approval. Excess hiring in 2023-24 further increased costs. However, due to the university’s recent efforts in maintaining financial discipline, the government has released pension funds,” said Vice-Chancellor Prof. P.L. Dharma.
