New Delhi: Amid an ongoing row between the Centre and the Tamil Nadu government, a parliamentary panel report tabled Wednesday described withholding funds over non-adoption of the flagship PM Schools for Rising India (PM-SHRI) scheme as “unjustifiable” and recommended that pending funds be released immediately to Tamil Nadu, Kerala, and West Bengal.
The state governments of Tamil Nadu, Kerala, and West Bengal have refused to sign an MoU with the Centre to implement the PM-SHRI scheme, which aims to upgrade 14,500 schools and transform them into model institutions that embody the spirit of the NEP 2020.
In response, the Centre has withheld funds from these states under the Samagra Shiksha Abhiyan scheme (SSA)—a flagship initiative by the Indian government designed to ensure universal elementary education (UEE) for children aged 6 to 14, making free and compulsory education a fundamental right for all.
The Parliamentary Standing Committee on Education, Women, Children, Youth, and Sports, chaired by Congress Rajya Sabha member Digvijaya Singh, in its 2025-26 demand for grants report for the Department of School Education & Literacy, tabled in Parliament Wednesday, expressed serious concern over the non-release of SSA funds to states that have not signed MoUs for implementing the PM SHRI.
According to the report, the total pending funds are significant, with over Rs 1,000 crore owed to West Bengal, Rs 859.63 crore to Kerala, and Rs 2,152 crore to Tamil Nadu.
Observing that states like Kerala, Tamil Nadu and West Bengal have demonstrated strong educational outcomes with a Gross Enrollment Ratio (GER) significantly above the national average, the committee stated, “Underfunding and delays in transfer of SSA funds have constrained further advancements in their school infrastructure, teacher training, and student support. These states have been compelled to use their own funds to pay salaries to teachers and resource personnel due to delays in release of central allocations.”
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Withholding funds obstructs the implementation of RTE
The report highlighted that in the financial year 2024-25, states like Tamil Nadu were allocated Rs 3,586 crore under the SSA, with the Union Government’s share expected to be Rs 2,152 crore. However, this amount has not been released, despite repeated requests from the state governments.
“The withholding of funds is severely impacting teachers’ salaries, RTE reimbursements, and transportation for students in remote areas. The Committee further observes that withholding the funds under SSA to States for not entering into MoU for separate schemes like PM SHRI is not justifiable,” the committee stated.
The committee noted that the department explained PM SHRI as a model school scheme developed under the NEP, while SSA is the programme designed to achieve the NEP’s goals.
“While this seems to be the rationale behind halting SSA grants to states that have not signed the PM SHRI MoU, the committee believes this reasoning is neither factual nor justified. SSA predates PM SHRI and is aimed at helping states meet the targets set by the Right to Education (RTE) Act,” the committee stated.
“The RTE Act, passed by Parliament, ensures education as a fundamental right for every child. As a programme that supports this right, SSA cannot be overridden by the NEP, which is an executive policy,” it stated.
Take sincere efforts to bring these states onboard amicably
The committee emphasised the need for the Department of School Education and Literacy to adopt a more inclusive and flexible approach towards states like Tamil Nadu, Kerala, and West Bengal.
“The Department should take sincere efforts to bring onboard amicably, the States like Tamil Nadu, Kerala and West Bengal by allowing them the flexibility to adopt their own education models while still benefiting from infrastructure and resource allocations. Besides, continued and adequate funding be ensured under schemes like SSA for States such as Tamil Nadu, West Bengal, and Kerala,” the committee stated.
The panel recommended that the department should re-evaluate SSA funding allocations and ensure that “none of the States are placed in disadvantageous positions for not accepting NEP 2020 or PM SHRI”.
The Committee also stresses the importance of transparency in funding mechanisms. It recommends that real-time utilisation reports for PM SHRI funds be made publicly accessible, ensuring accountability and preventing disparities in fund allocation across states.
(Edited by Zinnia Ray Chaudhuri)
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