Finance Minister Pranab Mukherjee Monday announced a grant of Rs 500 million (Rs.50 crore) for Panjab University in Chandigarh, the alma mater of Prime Minister Manmohan Singh.
"I announce a grant of Rs 50 crore for Panjab University," Mukherjee said in his budget speech.
The university, which is funded by the central and Punjab governments in a 60:40 ratio, will be able to tide over its financial crunch with the latest grant announced by the finance minister.
Prime Minister Manmohan Singh did his graduation and post-graduation in economics from this university in the 1950s. Later, he joined the university as a lecturer and went on to become a professor at the young age of 32 years.
In recent years, the Punjab government has drastically cut down its share of funding to the university, leading to a major resource crunch for the institution.
The Punjab government, after initially agreeing to let Panjab University become a central university, backed out from the move last year saying that the step would make its claim to Chandigarh weaker.
Chandigarh, the joint capital of Punjab and Haryana, is a centrally-administered union territory (UT) which Punjab wants that it should be transferred to the state.