Urgent Reforms Demanded for National Overseas Scholarship Scheme Amid Delays and Funding Shortfalls

New Delhi- The Dr. Baba Saheb Ambedkar National Association of Engineers (BANAE) has raised serious concerns over persistent delays and inadequate funding in the National Overseas Scholarship (NOS) scheme for Scheduled Castes (SCs), urging immediate corrective measures.

In letters sent to the Chairperson of the Committee on the Welfare of Scheduled Castes and Scheduled Tribes, Minister of Education and Minister for Social Justice and Empowerment, BANAE highlighted critical issues affecting meritorious students from marginalized communities seeking higher education abroad. The letter, referencing NOS guidelines for 2022-23, 2023-24, 2024-25, and 2025-26, points to systemic inefficiencies, restrictive eligibility criteria, and a drastic reduction in scholarship allocations, which undermine the scheme’s objective of uplifting underprivileged sections through global educational opportunities.

The NOS, a Central Sector Scheme operational since 1954-55, aims to provide financial assistance to meritorious students from Scheduled Castes, Denotified, Nomadic, and Semi-Nomadic Tribes (DNT), Landless Agricultural Labourers, and Traditional Artisans for pursuing Master’s and PhD programs abroad. With 115 slots allocated for SCs, 6 for DNTs, and 4 for Landless Agricultural Labourers and Traditional Artisans, the scheme is designed to enhance the economic and social status of these communities, as mandated by Article 46 of the Indian Constitution, which emphasizes special care for the educational and economic interests of weaker sections. However, BANAE’s letter underscores a troubling trend: only 40 scholarships were awarded in 2025-26 against the intended 125, primarily due to insufficient funds, despite a budget increase to Rs. 130 crore for 2025-26 from Rs. 95 crore in 2024-25.

BANAE’s analysis of recent NOS cycles reveals a consistent rise in applicants—498 in 2022-23, 530 in 2023-24, and 673 in 2024-25—yet a significant number of rejections due to minor or major discrepancies, such as missing mark sheets or incomplete Income Tax Returns (ITRs). The results for 2022-23, declared on May 26, 2022, saw 125 provisional selections, 38 waitlisted, and 335 rejections. Similarly, 2023-24 results, announced on May 26, 2023, included 125 selections, 61 waitlisted, and 344 rejections. For 2024-25, declared on July 19, 2024, 125 were selected, 155 waitlisted, and 393 rejected. The 2025-26 cycle, however, marked a sharp decline, with only 440 applicants, 106 provisionally selected (only 40 funded due to budget constraints), 64 waitlisted, and 270 rejected. BANAE attributes this drop to revised guidelines that delayed application submissions from February 15 to March 19, 2025, and extended the closure to April 27, 2025, with results announced on July 1, 2025, 45 days later than previous years. These delays, BANAE argues, caused students to miss admission deadlines at top global institutions like QS500 colleges and Indian Institutes of Management (IIMs).

The revised NOS guidelines for 2025-26 introduced stricter income criteria, limiting eligibility to candidates with a gross annual family income below Rs. 8 lakh for 2024-25, alongside additional scrutiny of income for 2023-24. BANAE contends that the Rs. 8 lakh income cap is inadequate, given study expenses in countries like the USA, which range from Rs. 1-2 crore annually. The association demands raising the income limit to Rs. 12 lakh for full scholarships and introducing tiered scholarship levels: 85% for incomes up to Rs. 24 lakh, 75% for Rs. 24-36 lakh, 50% for Rs. 36-50 lakh, and 25% for Rs. 50-75 lakh, to ensure broader access. Furthermore, BANAE criticizes the requirement for ITRs to include both Financial Year (FY) and Assessment Year (AY) details, which has led to rejections due to ambiguity, and calls for clearer specifications.

The letter also highlights delays in result declarations, particularly for 2024-25, which were announced on July 19, 2024, instead of mid-May, disrupting students’ admission plans. BANAE alleges that such delays reflect inefficiency and potential corruption, urging accountability under the Bharatiya Nyaya Sanhita (BNS) 198. The association demands reversing the 2025-26 guideline changes, restoring the application period to February 15–March 31, and ensuring results by April 30 annually to align with international admission cycles. An impact assessment study cited by BANAE notes that 40% of SC students face difficulties due to prolonged processing times and delayed scholarship disbursements, a problem exacerbated in 2025-26.

BANAE further calls for increasing NOS slots to 10,000, proportionate to the SC population, given that 13.36 lakh Indian students studied abroad in 2024, as per a Rajya Sabha response on August 1, 2024. The association advocates raising the age limit for NOS beneficiaries to 40 years, aligning with the 37-year limit for SC/ST candidates in the UPSC Civil Services Examination, to accommodate those exploring global opportunities after domestic career attempts. Additionally, BANAE urges enhanced publicity through leading newspapers and prime-time media to raise awareness, as recommended in the impact assessment report, and increased living expense allowances to match rising costs abroad.

Citing the government’s commitment to empowering marginalized communities, BANAE has appealed to direct authorities to investigate delays, nullify restrictive guideline changes, and ensure full funding for 125 NOS slots or more. The association has also corresponded with the Ministers of Social Justice and Empowerment, Education, and SC/ST Commissions, pressing for systemic reforms to prevent meritorious SC students from being denied opportunities due to bureaucratic hurdles or funding shortages. The letter emphasizes that if the Joint Seat Allocation Authority (JoSAA) can streamline admissions for IITs, similar efficiency should be achievable for NOS, ensuring no eligible SC aspirant is left behind.