Under the proposed development, a large number of teaching and non-teaching staff who did not receive suitable remuneration for over 25 years for their services will now be given financial grant . It's estimated that, around 5,000 institutions, employs such teaching faculties who have been going without appropriate pay for more than last 25 years.

The state chief Minister Nitish Kumar, amid applause from members in both the Houses, said that the grants would be directly linked to the performance of their students in various examinations every year.

Under the plan, the target institutions would be categorise into three categories in such a way that a sum of Rs 5,500 would be allotted to degree colleges for every first division while for second divisions they would receive grants of Rs 5,000 and for third divisions, the amount would be Rs 4,500 per year per student. Hence, for girls, the state would provide an additional amount of Rs 300 for every first division and Rs 200 each for second and third divisions.

Further, the amount would be given to managing committees of these unaided institutions instead of its faculty members. The new scheme would create an additional financial burden of nearly Rs 150-200 crore per year on the state government, disclosed HRD principal secretary Anjani K Singh.