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(Revised w.e.f. 1.07.2011)


Even under the existing PMS-OBC Scheme, due to budgetary constraint, in practice, it has not been possible for the Central Government to provide assistance for giving scholarship to all eligible students. Therefore, a notional allocation (NA) under the Scheme was being conveyed at the beginning of the financial year since 2008-09 to States/UTs having OBC population, in proportion to their total population as per census and they were being requested to send proposals within the NA. This is now being formalized under the revised Scheme, as per broad procedure outlined below:-

  1. At the beginning of the financial year, notional allocation(NA) of funds of States/UTs will be made by this Ministry, from the overall annual outlay of the Scheme, on the basis of population of each State/UT, excluding States/UTs having no notified list of OBCs (viz. Arunachal Pradesh, Meghalaya, Mizoram, Nagaland and Lakshadweep).
  2. States/UTs will sub-allocate their NA, district-wise and group-wise, for all non-professional courses. However, such sub-allocation would not be necessary for professional courses, as institutions of professional education tend to be concentrated in major cities/centres. The State Government is expected to lay down criteria for selection for award of scholarship under both types of courses-professional and non-professional, to the extent of available funds, based on merit-cum-means.
  3. States will earmark at least 25% of the total outlay under the Scheme for Group D courses which include, Class-XI and XII and all other post-matriculation level non-degree courses, diploma courses in polytechnics etc. Such earmarking would encourage more OBC students to join entry-level courses of tertiary education which would enable them subsequently to take up courses leading to higher qualifications.
  4. States/UTs will incur expenditure under the Scheme at least to the extent of "Central assistance or NA plus their committed liability", and should normally limit the number of scholarships accordingly. However, they would be free to allocate funds from the State-Plan, over and above the level of their committed liability plus the Central Assistance received, for funding additional scholarships under the Scheme. Any such additional expenditure will have to be borne by the State Government/UT Administration itself, over and above their committed liability, and will generally not be eligible for reimbursement from the Centre. However, additional expenditure incurred by a State/UT beyond the level of Central Assistance may be considered for reimbursement by the Central Government, to the extent of availability of savings (mainly from States which are not able to fully avail of their notional allocation, for any reason), towards the end of a financial year.
  5. Central assistance given to a State/UT would have to be first utilized to cover renewal cases (i.e students already awarded scholarships during the previous years against Central Assistance), and only the balance amount left may be utilized to cover new cases.

The above lays down the broad principles and procedure for implementing the 'Capping' feature. Each State Government may work out its State-specific detailed modalities for implementing the “Capping” feature of the revised PMS-OBC Scheme, keeping in view the above broad principles/ procedure and its own circumstances, and send to this Ministry guidelines issued and any amendments thereto, in this behalf to the implementing agencies.

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