Cabinet Approves ₹4,200 Crore MERITE Scheme to Transform Technical Education

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the implementation of the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) Scheme, aimed at improving the quality, equity, and governance of technical education across all States and Union Territories.

The scheme will cover 275 government and government-aided technical institutions, including 175 engineering colleges and 100 polytechnics, with a total financial outlay of ₹4,200 crore for the period 2025-26 to 2029-30. Of this, ₹2,100 crore will come as a World Bank loan under external assistance.

Under MERITE, selected National Institutes of Technology (NITs), State Engineering Institutions, Polytechnics, and Affiliating Technical Universities (ATUs) will be supported. State and UT departments managing the technical education sector will also benefit, with an estimated 7.5 lakh students expected to gain from the scheme.

Key Features and Expected Impact
The MERITE Scheme, aligned with the National Education Policy (NEP) 2020, seeks to introduce multidisciplinary approaches in technical education while strengthening research, innovation, and quality assurance systems. Major expected outcomes include:

• Implementation of digitalization strategies in participating States and UTs

• Development of guidelines for multidisciplinary programs

• Enhanced employability skills and transition rates among students

• Relevant, industry-aligned curricula and blended learning models

• Increased accreditation and improved institutional governance

• Development of future academic leaders, with special focus on women faculty

Implementation and Support
The scheme will be implemented as a Central Sector Scheme, with funds directly transferred from the Centre to participating institutions through a Central Nodal Agency. Eminent institutions such as IITs and IIMs, along with regulatory bodies like AICTE and NBA, will play a key role in its execution.

Boost to Employability
MERITE also focuses on employment generation by equipping students with industry-ready skills. Initiatives will include internships, updated curricula, faculty development programs, establishment of research hubs, incubation centres, skill labs, and language workshops. These measures aim to significantly improve graduate placement rates and reduce unemployment among engineering graduates.

Officials said the scheme is expected to not only enhance learning quality but also make India’s technical education system more responsive to the evolving needs of the economy and global industry standards.