Complex sentence: Merit scholarship in favour of previous year paid students is granted on the basis of merit in the Entrance Test to the course and in the final year it is awarded on the basis of merit in the M.A/M.Sc.
Split into simpler sentences: Merit scholarship in favour of previous year paid students is granted on the basis of merit in the entrance test to the course. In the final year it is awarded on the basis of merit in the M.A/M.Sc.