Heeding to a demand by the armed forces, the government has removed the cap of Rs 10,000 per month imposed by it in July last year on educational assistance given to children of martyrs or those disabled in action, officials said.
The government order saying the assistance under the scheme cannot exceed Rs 10,000 per month had triggered widespread discontent among all the three services.
In a note issued on Wednesday, the finance ministry said the educational concession will continue without the cap of Rs 10,000 per month.
It, however, said the concession will be admissible for undertaking studies in government or government aided schools and educational institutes or those “recognised” by the central or state governments.
The concession will also be applicable to students studying in autonomous institutes financed by central or state governments.
Under the scheme, which was initially rolled out in 1972, tuition fee of children of martyrs or those disabled in action were completely waived in schools, colleges and other professional educational institutions.
Defence Minister Nirmala Sitharaman had requested the finance ministry to remove the cap.
The Chiefs of Staff Committee, comprising the army, navy and the air force chiefs, had also written to the defence ministry requesting it to remove the cap.
Approximately 250 students were affected during the current financial year following the government’s decision to cap the assistance, according to officials.
Replying to a question in the Rajya Sabha in January, Minister of State for Defence Subhash Bhamre had said that the annual saving on account of putting the cap would be Rs 3.20 crore per annum.
He had said the highest amount drawn has been reported to be Rs 18.95 lakh per annum per student.