Lok Sabha Question No. 5077 (UNSTARRED), answered on 2017-04-05
Subject: Financial Support to Nalanda and SAU
Ministry: EXTERNAL AFFAIRS
Asked by: B. SREERAMULU

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.5077 TO BE ANSWERED ON 05.04.2017

## FINANCIAL SUPPORT TO NALANDA AND SAU

5077. SHIR B. SRIRAMULU:

Will the Minister of EXTERNAL AFFAIRS be pleased to state:

- (a) the details of financial support extended to Nalanda and South Asian University (SAU), including the quantum of funds allocated and the terms and conditions associated with such funds;
- (b) the comparison of contributions by the Indian Government with the voluntary contributions of other participating countries;
- (c) whether the Government has received reports of financial mismanagement  by  the  authorities  of  the  Nalanda  University  and South Asian University and if so, the details thereof;
- (d) the details of the steps being taken/planned by the Government to correct the mismanagement; and
- (e) whether  the  Government  is  planning  to  set  up  an  International University  in  Karnataka  with  foreign  funding  and  if  so,  the  details thereof along with the timeline?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS [GEN. (DR) V. K. SINGH (RETD)]

- (a) Nalanda University: Nalanda University has been established as a non-profit public-private partnership international institution of academic  excellence.  India,  as  the  host  country,  has  made  significant contributions.  The  Central  Government  has  made  an  allocation  of  Rs 2,727.10 crores to meet the capital and recurring expenditure of  Nalanda University during the establishment phase up to 2021-22.  The allocation is made from MEA's Plan Budget. The utilization of these funds are subject to  Nalanda  University's own  rules  and  regulations  and  all relevant Government  of  India  guidelines.  MEA  has  no  direct  control  over  the

expenditures incurred by the University which are subject to the Rules & Regulations  of  the  University  and  approved  by  its  Governing  Board. However,      the  accounts  of  Nalanda  University  are  audited  by  the Comptroller and Auditor General of India and the Principal Chief Controller of Accounts of Ministry of External Affairs.

South Asian University (SAU):    India contributes approximately USD 4.34 million  annually  towards  operational  cost  of  the  South  Asian  University. The Cabinet has approved US$ 239.930 million on account of capital cost of the university. The revised cost estimates for the construction project is Rs. 2545.47 crores. The university started functioning since 2010. The financial support extended to the university so far is Rs. 578.77crores on all heads . Funds directly disbursed to the university for construction of its permanent campus, operational costs and scholarship scheme amount to Rs.  388.25  crores  as  on  date.  Indirect  financial  support  of  Rs.  190.53 crores  include land measuring 85.32 acres provided free of cost at Maidan Garhi, New Delhi for construction of the permanent campus, payment of rent( since May, 2012) for its temporary premises in Akbar Bhavan, New Delhi  and  miscellaneous  expenditure  incurred  in  connection  with  the university project. The terms and conditions associated with such funds is that the ownership of land vests with the Ministry of External Affairs and the  capital  expenditure  of  the  university  will  be  audited  by  the  CAG  of India. Government of India pays its assessed contribution to the operational costs of the university. However, it has no direct control over the operational expenditure which is incurred according to the Rules and Regulations  of  the  university  and  approved  by  the  Governing  Board,  of which India is a Member.

- (b)   Nalanda University: The  comparison  of  contribution  by  Indian Government with the voluntary contribution of other participating countries is as follows:

| From Whom                             | Amount received (till 30.03.2017)        |
|---------------------------------------|------------------------------------------|
| Government of India                   | Rs 159.18 crores                         |
| China                                 | US $ 1 Million (equal to Rs 5.2 crores)  |
| Australia                             | Aus $ 1 Million (equal to Rs 5.4 crores) |
| Thailand                              | US $ 127,000 (=Rs 68.00 lakhs)           |
| Lao (PDR)                             | US $ 50,000 (equal to Rs 27.37 lakhs)    |
| Indonesia                             | US $ 30,000 (equal to Rs 18.54 lakhs)    |
| Mr Rajendra Joshi & Mrs Ursula Joshi. | US $ 1 Million (equal to Rs 6.6 crores)  |

South Asian University (SAU):  A comparative statement of contributions of India vis à-vis other SAARC member states is enclosed as Annexure.

(c) Nalanda University: The accounts of Nalanda  University are audited by the office of Comptroller and Audit General of India and also the  Principal  Chief  Controller  of  Accounts  of  the  Ministry  of  External Affairs.  They  have  pointed  out  certain  procedural  irregularities  in  the expenditures incurred by Nalanda University. The Nalanda University has furnished its reply to the audit authorities. The Ministry of External Affairs received  some  complaints  of  irregularities  in  the  University  and  these were  forwarded  to  the  University  authorities  for  necessary  action.  The University has termed these complaints as false, baseless and defamatory. South Asian University: Audit of the capital expenditure of the South Asian University for the period 2011-15 has been conducted by the CAG of India. The  audit  report  has  pointed  out  some  irregularities  in  incurring  of expenditure on capital fund, grants-in-aid/contribution, purchase of furniture,  payments  made  to  the  contractor  etc.  The  university  has furnished its reply to the audit observations and these are being pursued. The  Ministry  of  External  Affairs  had  also  received  some  complaints  of financial mismanagement and corruption in the university from members of the public. They were forwarded to the University for Necessary Action. The university has dismissed the allegations as out of place. (d) Nalanda University: The  Ministry  has  urged  the  University  to follow best practices with regard to incurring expenditures and to follow all relevant GoI guidelines and the University's own rules and regulations. Further, the Government has recently constituted the Governing Board of the  University  with  effect  from  21.11.2016  in  terms  of  the  Nalanda University Act, 2010 to improve oversight. South Asian University: The Ministry of External Affairs is fully mindful of the issue of proper management of the South Asian University and probity in  its  financial  affairs.    In  case  of  any  complaint/adverse  report  in  this regard,  it  will take up the matter for remedial action through its Member in the Governing Board of SAU. (e) This Ministry is not aware of any such proposal for the establishment  of  an  International  University  in  Karnataka  with  foreign funding .

- *****

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## ANNEXURE

## Statement of Comparative contribution of SAARC Member States to South Asian University during the period of 2010-2016.

|                          | Afghanistan   | Bangladesh    | Bhutan        | India                                   | Maldives      | Nepal         | Pakistan   | Sri Lanka     |
|--------------------------|---------------|---------------|---------------|-----------------------------------------|---------------|---------------|------------|---------------|
| Operational Contribution | US$ 2,301,000 | US$ 4,920,000 | US$ 2,301,000 | US$ 30,370,239.00                       | US$ 1,844,000 | US$ 2,944,044 | US$ NIL    | US$ 2,951,000 |
| Other Contribution*      | -             | -             | -             | Rs. 3,94,24,12,153/-                    | -             | -             | -          | -             |
| Total                    | US$ 2,301,000 | US$ 4,920,000 | US$ 2,301,000 | US$ 30,370,239.00 + Rs.3,94,24,12,153/- | US$ 1,844,000 | US$ 2,944,044 | US$ NIL    | US$ 2,951,000 |

* Other Contribution by India

1. Capital Cost : Rs. 2,64,39,67,158/-

2. Rent For Akbar Bhawan : Rs. 1,24,02,81,544/-

3. Mise. Expenditure : Rs. 1,41,52,613/-

4. SAU Scholarships : Rs. 4,40,10,838/-