Establishing Named Scholarships for Financially Underprivileged Students

Punjab Engineering College Chandigarh is looking to establish several scholarships for its students through philanthropic contributions. Currently, an undergraduate student spends roughly Rs. 2.5 lakhs a year on tuition, lodging and boarding. It is desirable that a scholarship provides some reasonable financial support compared to the total expenditure of the student. Hence, it has been decided that the minimum amount of scholarship that can be established at PEC will be Rs. 50,000 per annum. Donors may wish to establish scholarships with larger amounts.

In order to provide a scholarship of Rs. 50,000 per annum, it is proposed to establish an endowment of Rs. 10 lakhs. The interest earned on this endowment will be used to disburse the scholarship amount. The excess interest (more than 5 percent) will be ploughed back to the endowment so that its amount also increases, and in future, the scholarship amount can be increased. It may be noted that despite some interest amount being added to the endowment, the real value of endowment will reduce over a period of time due to inflation, and a top up may be needed after some time.

A donor can specify the criteria for selection of students. These criteria could include merit (minimum CGPA, for example), means (maximum income limit, for example), or both. A donor could also specify the department in which the scholarship is to be established, the year of the student (1st, 2nd, 3rd, or 4th), or gender.

The scholarship can be named as per the wishes of the donor.

Currently, the Institute is interested in supporting the following category of students:

Students from low income families:

  • Family income less than Rs. 5 lakhs per annum
  • For Students with disability, family income less than Rs. 10 lakhs per annum Meritorious students
  • Top two students in each department
  • Top girl student in each department, if both toppers are boys

Please note that the Institute may decide on additional criteria on eligibility for scholarships. For example, it is expected that students getting means based scholarship will pass all courses, while students getting merit based scholarships will have a CGPA of at least 8.5. It is also required that the student has not been barred as part of disciplinary action.

To encourage establishment of endowment based scholarships for those categories of students whom the Institute wants to support, it has been decided that the scholarship amount will be matched by the Institute. So, if a donor gives an endowment of Rs. 10 lakhs for a scholarship for a student from low income family with income less than Rs. 5 lakhs per annum, the amount of scholarship to the student will be Rs. 1 lakh per annum (Rs. 50,000 from the interest of the endowment, and Rs. 50,000 from the Institute funds).

Benefit to the Donor:

  • Interaction opportunities with students
  • Tax deduction for Donations in India
  • Schedule VII of the Companies Act 2013 lists support of education under CSR.
  • An Annual Report will be provided to the Donor.
  • Donor will be informed about the beneficiary student.

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