Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

11-October-2012 12:11 IST

The Cabinet Committee on Economic Affairs has given its approval to continue the sharing pattern of costs between the Central and State/UT Governments in the ratio of 75:25 during the year 2012-13 in respect of State sector component of the Scheme for setting up of 6,000 model schools at block level as benchmark of excellence.

For the year 2012-13, an amount of Rs.1080.00 crore has been allocated for the Scheme. Any financial liability arising due to continuation of sharing pattern of 75:25 would be taken care of within the said allocation. This will ease the extra financial burden of the State/UT Governments "resulting in effective and speedy implementation of the Scheme.

As each school will have 560 students, total number of beneficiaries for 3,500 schools will be 19.60 lakh students.

The programme is to be implemented through State Implementing Societies set up by State/UT Governments for this purpose.

Till March, 2012, a total of 1,954 model schools have been approved in 22 States and financial sanctions amounting to Rs. 1790.76 crore has been issued for setting up of 1,587 model schools in 21 States. Out of these, 428 model schools have become functional till March, 2012 in 27 States and Central share amounting to Rs.29.46 crore towards recurring grants has been released since 2010-11.

During 11th Five Year Plan, the sharing pattern of costs between the Central and State/UT Governments was 75:25, which was to change to 50:50 during 12th Five Year Plan (except for special category States and for upgraded Ashram schools in all States, for which the sharing pattern of 90:10 was approved for both the 11th and the 12th Five Year Plans.

Since implementation of State sector component of the Scheme had started only from 2009-10 (third year of the 11th Plan) and out of 3,500 schools, only 1,954 schools have been approved till March, 2012 (with release of Central share only upto 50 percent in most of the cases), reduction in quantum of Central share at this stage of implementation of the Scheme by changing the sharing pattern of costs from 75:25 to 50:50 would result in unintended premature shifting of burden to the State/UT Governments and significant slowing down of progress under the Scheme.

Background:

The Model School Scheme was launched in November, 2008 in pursuance of the announcement of the Prime Minister in his Independence Day speech of 2007. The objective of the Scheme is to set up one senior secondary school each in 6,000 blocks as benchmark of excellence. 3,500 of these schools are to be set up under State/UT Governments in Educationally Backward Blocks (EBBs) and the remaining 2,500 schools are to be established under PPP mode in blocks which are not educationally backward. The State Sector component of the scheme is operational since the launch of the scheme in November, 2008.

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SC/RK

Central-State cost-sharing maintained at previous ratio to prevent premature financial burden shift to states under the model schools scheme. Continuation of the 75:25 cost-sharing between Central and State/UT Governments for 2012-13 has been approved for the State sector component of the model schools Scheme to avoid premature shifting of financial burden to States and to sustain implementation through State Implementing Societies using allocated scheme funds.