The Central Government scheme will provide one-third of the capital costs for setting up the model degree colleges in districts where the Gross Enrollment Ratio (GER) for higher education is less than the national GER (12.4%).

The government has identified 25 districts in Bihar, 41 in Uttar Pradesh, 12 in Jharkhand, 7 in Haryana and 2 in Uttarakhand where the colleges will be established.

Bihar's HRD secretary Anjani Kumar Singh said the 25 districts of Bihar where GER is less than 11 per cent has been identified. These districts are - Araria, Aurangabad, Banka, Begusarai, Champaran (East), Champaran (West), Darbhanga, Gopalganj, Jamui, Kaimur, Katihar, Khagaria, Kishanganj, Lakhisarai, Madhepura, Madhubani, Nawada, Purnia, Saharsa, Samastipur, Sheohar, Sitamarhi, Siwan, Supaul and Vaishali.

The upper limit for capital assistance from the Centre has been set at Rs 2.67 crore. For Special Category States, the Centre will share 50 per cent of the capital cost but with a limit of Rs 4 crore for each college. State governments shall provide the land free of cost as well as the balance amount of the establishment cost. The recurring costs of running the college will be borne by the State governments concerned. The cost of setting up the colleges have been estimated at Rs 2,992 crore and the Centre will bear Rs 1,079 crore of this.

In the remaining period of the Eleventh Plan, assistance shall be provided for setting up 200 model colleges in the identified districts and priority will be given to special category States.

The Centre's share of funding in the remaining period of the Eleventh Plan stands at Rs 615 crore. The funds, however, will only be disbursed after a Memorandum of Understanding has been signed with the State governments concerned. Money will be disbursed through the University Grants Commission and by the Ministry of Human Resource Development.

Sources said the list include 62 districts identified by the minority affairs ministry as minority concentration districts where the population of minority group is over 20% on the basis of the 2001 census and have poor socio-economic indicators and basic amenities indicators.

The scheme envisions close to 1.87 lakh students enrolling in the 374 colleges.