Punjab Govt Set To Pay Punjabi University’s 150 Crore Loan! What Is The Loan About?

Punjab Chief Minister Charanjit Singh Channi, while paying his visit to the Punjabi University, Patiala, announced that the state government will be paying off the university’s Rs. 150 crore bank overdraft and also increase its monthly grant. The move has come following the university facing financial issues.

The monthly grant to the university has been increased from Rs. 9 Crore to 20 Crores. The CM visited the university for the launch of two centres – ‘Centre for Restoration of Ecosystem in Punjab’ and the ‘Centre for Rural Entrepreneurship and Skill Training’. The CM announced that after long discussion on the institute’s condition, the government has decided to take off its Rs. 150 Crore loan that it availed during the terms of previous governments.

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The major reason behind the institute’s debt is its poor financial balance. The expenditure incurred by the PU is more than the income earned by it in a month, as claimed by the Chief Minister. He added that the university is incurring a loss of Rs. 10 crore every month due to this imbalance of their finances and as such, it becomes necessary to increase the monthly grant for it.

While talking about the service of the institute to the state, the CM said that PU has helped in uplifting the Punjabi culture and promoting the regional language for years. “It is important for us to teach Punjabi to our children”, said Channi. 

The state leader further went on to address the students of the university and asked them to be focused on their set goals and keep working hard with determination. CM Channi was assisted by the Finance minister of Punjab, Manpreet Singh Badal, who said that this grant will prove to be of great importance to the university. He also said that the institute has been facing this financial crisis for years and this will be a game-changer move for them.

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