Haryana

• 05 Mar 2025

Rising Debt of State-run Universities in Haryana

Why in News?  

The former Haryana finance minister plans to launch a campaign highlighting the rising debt of state-run universities after the government replaced grant-in-aid with loans. 

Key Points 

• Rising University Debt: 
  • The 22 state universities in Haryana have accumulated a debt of ₹6,625.82 crore due to shift in grant-in-aid policy with loan. 
  • The rising debt could impact research, teaching, and even the survival of universities. 
• Government’s Justification: 
  • The state government maintains that the funds are provided under the scheme “non-recoverable financial assistance in the form of interest-free perpetual loans.” 
  • Officials argue that grant-in-aid counts as revenue expenditure, while loans count as capital expenditure, which is aimed at building assets and generating revenue for universities. 
• Concerns Over Self-Financing Model: 
  • Decision of giving loans instead of grant-in-aid practically means that all government universities would have to adopt a self-financing pattern which forces universities to increase fees, making higher education unaffordable for lower and middle-class students. 

 Grant-in-aid 

• Grants-in-aid are payments in the nature of assistance, donations or contributions made by one government to another government, body, institution or individual.  
• Apart from Grants-in-aid given to the State Governments, the Union Government gives substantial funds as Grants-in-aid to other agencies, bodies and institutions.  
• Similarly, the State Governments also disburse grants-in-aid to agencies, bodies and institutions such as universities, hospitals, cooperative institutions and others.  
• The grants so released are utilized by these agencies, bodies and institutions for meeting day-to-day operating expenses and for creation of capital assets. 

Haryana Amended Green Energy Open Access Regulations

Why in News? 

The Haryana Electricity Regulatory Commission (HERC) has amended its Green Energy Open Access Regulations, 2023. 

Key Points 

• Expanded Eligibility for Open Access:  
  • Consumers with a contracted demand of 100 kW or more, whether through a single connection or multiple connections totaling 100 kW or more within the same electricity operation division of a distribution licensee, are now eligible for Green Energy Open Access.  
• Extended Additional Surcharge Exemption for Offshore Wind Projects:  
  • Electricity generated from offshore wind projects commissioned until December 2032 and supplied to open access consumers will be exempt from additional surcharges. This extends the previous exemption, which was applicable only until December 2025.  
• Clarifications on Open Access for Non-Independent Feeder Consumers:  
  • Eligible consumers not connected to independent feeders can access open access, provided they accept system constraints and any power cut restrictions imposed by their distribution licensee. Under-drawal due to such restrictions will not be compensated.  

Haryana Electricity Regulatory Commission (HERC) 

• HERC was established on 17^th August 1998 as an independent statutory body corporate as per the provision of the Haryana Electricity Reform Act, 1997.  
• Haryana was the second State in India to initiate the process of Reform & Restructuring of the Power sector. 
• The Haryana Electricity Reform Act, 1997 was passed by the Haryana State Legislative Assembly on 22^nd July 1997. After receiving assent of the President of India on 20^th February 1998, this Act came into force on 14th August 1998.