The National Fellowship Scheme for Scheduled Caste (SC) students has witnessed a significant decline of 61% in the number of fellowships awarded, dropping from 4,841 in 2020-21 to 1,872 in 2022-23. During the same period, the funding allocated by the Ministry of Social Justice and Empowerment for this scheme has decreased by 3.9%.

In response to inquiries regarding funding and the scheme's beneficiaries, A Narayanswami, the Minister of State for Social Justice and Empowerment, stated that the "National Fellowship Scheme for SC students is demand-driven, and funds are released as per demand, with no shortage of funds."

This scheme supports SC students pursuing MPhil or Ph.D. research in science, humanities, and social science. The National Scheduled Castes Finance and Development Corporation (NSFDC) began implementing the program in October 2022, taking over from the University Grants Commission (UGC).

Under the scheme, 2,000 new fellowships are granted annually to SC students pursuing advanced studies and research for MPhil or Ph.D. degrees. If 25% or more slots remain unfilled in an academic year, the slots for the next year are reviewed, and backlogged slots are filled as needed.

In the financial year 2020-21, around 4,841 slots, including backlog slots, were filled. The data indicates a decrease of 3.9% in funds from the ministry, amounting to Rs 118.99 crore in 2020-21 to Rs 114.25 crore in 2022-23.

Interestingly, this decline comes at a time when there has been an increase in the enrollment of Scheduled Caste students in higher education. According to the All India Survey on Higher Education (AISHE) 2020-21, SC student enrollment grew by 4.2% from 2019-20 to 2020-21, compared to a growth rate of 1.6% in the previous year. SC student overall enrollment has increased by 27.96% since 2014-15.

The Ministry of Social Justice and Empowerment administers this central sector scheme without state government involvement. Currently, student selection is based on merit determined by the National Eligibility Test (NET) conducted by the University Grant Commission (UGC) and the Council of Scientific and Industrial Research (CSIR) held by the National Testing Agency (NTA).

Explaining the decrease in the number of beneficiaries, the minister mentioned that data indicators can fluctuate yearly, as awardees have a three-year validity for the fellowship. In this period, they may or may not avail of the fellowship due to various reasons, including better placements.

The minister also noted that the provisions of the scheme were reviewed and approved for the next five years, with a total allocation of Rs 882 crore under the scheme. He emphasized that there is no shortage of funds for the scheme.

Additionally, it has been observed that the Pre-Matric Scholarship for Other Backward Classes (OBCs), Extremely Backward Classes (EBCs), and Denotified Tribes (DNTs) has seen a 41% reduction in allocation, dropping from Rs 478 crore to Rs 281 crore in the 2022 budget analysis.