The Cabinet Committee on Economic Affairs has approved the Rashtriya Uchchatar Shiksha Abhiyan (RUSA), a Centrally Sponsored Scheme (CSS) for reforming the state higher education system.
During the 12th Plan period, 80 new universities would be created by converting autonomous colleges/colleges in a cluster to State universities. 100 new colleges, including professional/technical colleges would be set up and 54 existing colleges would be converted into model degree colleges. Infrastructure grants would be given to 150 universities and 3,500 colleges to upgrade and fill critical gaps in infrastructure especially libraries, laboratories etc. RUSA would also support 5,000 faculty positions.
In the 12th Plan period, RUSA would have a financial outlay of Rs. 22,855 crore, of which Rs.16,227 crore will be the Central share. In addition, allocation of Rs. 1,800 crore in the 12th Plan for the existing scheme Sub-Mission polytechnics would also be subsumed in RUSA. Thus the total central share, including the existing scheme of polytechnics will be Rs. 18,027 crore during the 12th Plan. Centre-State funding would be in the ratio of 90:10 for North-Eastern States, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttarakhand and 65:35 for other States and Union Territories.

RUSA will be a new Centrally Sponsored Scheme spread over two plan periods, for improving access, equity and quality in the state higher education system. With over 96 percent of students enrolled in the state higher education system, there is a need for State colleges and universities to be strengthened through strategic Central funding and implementing certain much needed reforms. RUSA also aims to incentivize States to step up plan investments in higher education.
The important objectives of the scheme are:
All funding under RUSA would be norm based and future grants would be performance based and outcome dependent. Commitment by States and institutions to certain academic, administrative and governance reforms will be a precondition for receiving funding.