New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme with an outlay of Rs 4,200 crore to enhance quality, equity and governance in technical institutions across the country.

The five-year Central Sector scheme, to be implemented from 2025-26 to 2029-30, will cover 275 government and government-aided institutions, including 175 engineering colleges and 100 polytechnics. It will have an external assistance component of Rs 2,100 crore from the World Bank.

The scheme aims to align technical education with the National Education Policy-2020 (NEP-2020) by introducing multidisciplinary programmes, digitalisation strategies, industry-linked curricula, research hubs, faculty development initiatives and incubation centres. Around 7.5 lakh students are expected to benefit.

Institutions to be supported include select National Institutes of Technology (NITs), state engineering colleges, polytechnics and affiliating technical universities. State and UT technical education departments will also receive support for reforms and capacity building.

Expected outcomes include improved employability skills, increased student transition rates, better research and innovation ecosystems, stronger quality assurance, and enhanced accreditation levels. The scheme also seeks to promote women faculty in leadership roles and reduce gender gaps in technical education.

IITs, IIMs, the All India Council for Technical Education (AICTE) and the National Board of Accreditation (NBA) will play a key role in implementation.

The MERITE scheme, formulated in collaboration with the World Bank, addresses policy priorities such as revamping curricula, modernising pedagogy, bridging the digital divide and ensuring labour market alignment. The government said these measures will lead to higher placement rates for engineering graduates and contribute to reducing unemployment.