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West Bengal Signs MoU for PM-SHRI Schools: Samagra Shiksha Funds & NEP 2020 Integration

The West Bengal government recently signed a Memorandum of Understanding (MoU) with the Central Government to implement the PM-SHRI schools scheme, reversing its previous opposition following recent assembly elections. This agreement is highly significant because the Union Education Ministry had linked the release of critical Samagra Shiksha Abhiyan funds to the state's adoption of the scheme. With West Bengal's compliance, Tamil Nadu and Kerala are now the only two Indian states yet to adopt the PM-SHRI framework, citing reservations over the mandatory implementation of the National Education Policy (NEP) 2020.

What Happened

The West Bengal government formally signed a Memorandum of Understanding (MoU) with the Union Education Ministry in May 2026 to execute the PM-SHRI (Pradhan Mantri Schools for Rising India) scheme. This policy shift followed letters from the central authorities urging compliance after recent state elections. Previously, the state had objected to the scheme's funding structure and the 'PM' nomenclature. By signing this agreement, the state cleared the way for the central government to release previously withheld school education funds.

When & Where

The MoU was executed in New Delhi in mid-May 2026. This agreement directly impacts the public education infrastructure across the state of West Bengal while framing a broader national narrative where only the southern states of Kerala and Tamil Nadu remain outside this federal education framework.

Who Is Involved

  • Union Ministry of Education: Nodal central authority mandating the NEP 2020 implementation and controlling Samagra Shiksha grants.
  • West Bengal State Government: The newest signatory agreeing to upgrade state schools under the central PM-SHRI guidelines.
  • Tamil Nadu and Kerala Governments: The final two non-signatory states holding out against the mandatory complete adoption of NEP 2020.

How It Works

  • States must first sign a mandatory MoU committing to implement the National Education Policy (NEP) 2020 in its entirety.
  • The state identifies existing government or local body schools suitable for transformation into PM-SHRI hubs.
  • The Centre and State share the financial burden, generally in a 60:40 ratio, to upgrade infrastructure and teaching methodologies.
  • The Union government strictly links the release of broader Samagra Shiksha funds to the successful signing of this specific PM-SHRI MoU.
  • Upgraded schools adopt sustainable "Green School" practices, modern digital pedagogy, and holistic 360-degree assessment frameworks.

Why It Matters

This development is critical for UPSC GS Paper 2, specifically regarding Centre-State relations and Governance. It demonstrates the leverage the Union government exercises via Centrally Sponsored Schemes (CSS) to ensure national policy compliance. Economically, it unblocks vital educational funding for state schools. Socially, it guarantees infrastructure upgrades, directly impacting the quality of primary and secondary education for millions of aspirants.

Historical Background

  • 1976: The 42nd Constitutional Amendment transferred Education from the State List to the Concurrent List, fundamentally altering federal dynamics.
  • 2018: The Union government launched the Samagra Shiksha Abhiyan, a comprehensive scheme subsuming earlier initiatives like Sarva Shiksha Abhiyan and RMSA.
  • 2020: The National Education Policy (NEP) was launched, marking the first major education policy overhaul in 34 years.
  • 2022: The PM-SHRI scheme was approved by the Cabinet to practically demonstrate the NEP 2020 on the ground.

Previous Related Events

  • September 2022: The Union Cabinet officially approved the PM-SHRI scheme with a budget outlay of over ₹27,000 crore for five years.
  • Mid-2023: Several opposition-ruled states initially refused to sign the PM-SHRI MoU, citing interference in state education autonomy.
  • Late 2023 to 2024: The Centre withheld the release of Samagra Shiksha funds to Bengal, Kerala, and Tamil Nadu due to their non-compliance with the PM-SHRI mandate.

Static GK Connection

  • Concurrent List (Seventh Schedule): Article 246 allows both Parliament and State legislatures to make laws on education, leading to administrative and policy overlap.
  • Centrally Sponsored Schemes (CSS): These are policies backed by Article 282 where the Centre provides conditional discretionary grants to states to achieve national developmental targets.

India & World Comparison

In pure federal structures like the United States or Canada, education policy and funding are almost entirely controlled by state or provincial governments without central mandates. In India's quasi-federal system, the Union government frequently uses financial grants as leverage to ensure states adopt unified national policies, as seen with PM-SHRI and the push for national NEP 2020 compliance.

Future Impact

  • West Bengal will now receive its delayed share of central education funds for the 2023-24 financial year, enabling delayed infrastructure projects.
  • Selected schools in West Bengal and previously compliant states like Andhra Pradesh and Telangana will begin physical and pedagogical transformations into exemplar NEP 2020 hubs.
  • Extreme political and financial pressure will mount on Kerala and Tamil Nadu to either sign the MoU or rely entirely on state budgets for basic school maintenance.

🔑 Key Points for Revision

  • West Bengal signed the MoU to implement PM-SHRI schools in May 2026.
  • Kerala and Tamil Nadu are now the only Indian states remaining outside the scheme.
  • PM-SHRI stands for Pradhan Mantri Schools for Rising India.
  • The scheme was approved in 2022 specifically to showcase the National Education Policy (NEP) 2020.
  • Centre withheld Samagra Shiksha Abhiyan funds (2023-24) from non-compliant states.
  • Previous opposition was due to the 'PM' prefix, funding share, and mandatory NEP 2020 implementation.
  • Education is listed in the Concurrent List (7th Schedule) of the Indian Constitution.
  • Education became a concurrent subject via the 42nd Amendment Act in 1976.
  • PM-SHRI is a Centrally Sponsored Scheme (CSS) with a 60:40 shared funding pattern.
  • The scheme targets upgrading 14,500 existing schools into exemplar educational institutions.
  • Selected schools will be developed as sustainable "Green Schools" with eco-friendly tech.
  • Samagra Shiksha (launched 2018) merged SSA, RMSA, and Teacher Education schemes.
  • Linking scheme funds to policy compliance is a key issue in Indian fiscal federalism.
  • Discretionary central grants to states are empowered by Article 282 of the Constitution.
  • Signatory states are legally bound to accept the NEP 2020 in its entirety without modifications.

🧠 Concept Link (Static GK Deep Dive)

Core Concept: Centrally Sponsored Schemes & Fiscal Federalism

  • Definition: Schemes funded partially by the Union government but implemented by state governments to achieve unified national developmental goals.
  • Constitutional / Legal Basis: Governed largely by Article 282 of the Indian Constitution, which allows the Union or States to make discretionary grants for public purposes.
  • Scientific / Economic Principle: Built on the principle of fiscal equalisation—transferring resources to ensure standardisation of public goods across sub-national units.
  • How it connects to this event: The Centre leveraged Samagra Shiksha CSS funds to enforce the adoption of the PM-SHRI CSS, illustrating financial leverage in federal relations.
  • Origin & History: Evolved post-independence largely through Planning Commission grants to ensure uniform socio-economic development across diverse Indian states.
  • Key milestone 1: The Gadgil-Mukherjee Formula (1969) attempted to objectively rationalise the distribution of central plan assistance to states.
  • Key milestone 2: The 14th Finance Commission (2015) increased state tax devolution to 42%, advising a simultaneous reduction and rationalisation of CSS.
  • Related Acts / Schemes / Treaties: Samagra Shiksha Abhiyan, PM-POSHAN, MGNREGA, and National Health Mission (NHM).
  • Nodal Ministry / Body: Ministry of Finance (Department of Expenditure) orchestrates the funding in consultation with line ministries like the Ministry of Education.
  • India-specific relevance: Crucial for balancing India's vertical fiscal imbalance, where the Centre collects the majority of revenue but states shoulder heavy expenditure duties like health and education.
  • Global comparison: Functionally similar to "conditional block grants" utilized by the US Federal Government to influence state-level policies (e.g., interstate highways).
  • Data point: Despite Finance Commission recommendations, Centrally Sponsored Schemes still account for a massive portion of conditional central transfers to states.
  • Common exam angle: UPSC frequently tests how conditional CSS funding impacts the autonomy of states and the spirit of cooperative federalism.
  • Easy memory hook: CSS = "Centre Sponsors, State Steers" (Funding is shared, but execution is local).

❓ Practice MCQs

Q1. Which state recently signed an MoU with the Union Education Ministry in May 2026 to implement the PM-SHRI scheme?

A) Kerala

B) Tamil Nadu

C) West Bengal

D) Punjab

Answer: C

Explanation: West Bengal signed the MoU in May 2026, leaving only Kerala and Tamil Nadu outside the PM-SHRI scheme.

Q2. The PM-SHRI scheme is primarily designed to showcase the implementation of which major national policy?

A) Right to Education Act 2009

B) National Education Policy (NEP) 2020

C) Samagra Shiksha Abhiyan

D) National Skill Development Policy

Answer: B

Explanation: PM-SHRI schools are explicitly designed to emerge as exemplar hubs showcasing all fundamental components of the NEP 2020.

Q3. Through which Constitutional Amendment was 'Education' shifted from the State List to the Concurrent List?

A) 42nd Amendment Act, 1976

B) 44th Amendment Act, 1978

C) 86th Amendment Act, 2002

D) 97th Amendment Act, 2011

Answer: A

Explanation: The 42nd Amendment transferred education to the Concurrent List, empowering the Centre to formulate national educational policies.

Q4. The Union government linked the release of funds for which broader educational scheme to the signing of the PM-SHRI MoU?

A) PM-POSHAN

B) Mid-Day Meal Scheme

C) Rashtriya Uchchatar Shiksha Abhiyan (RUSA)

D) Samagra Shiksha Abhiyan

Answer: D

Explanation: The Ministry mandated that states must implement PM-SHRI to receive their pending share of Samagra Shiksha funds for 2023-24.

Q5. What is the standard funding pattern for the PM-SHRI scheme for general category states?

A) 100% Central Funding

B) 90:10 (Centre:State)

C) 60:40 (Centre:State)

D) 50:50 (Centre:State)

Answer: C

Explanation: As a Centrally Sponsored Scheme, PM-SHRI follows a standard 60:40 funding ratio for general category Indian states.

Q6. Consider the following reasons why states like Kerala and Tamil Nadu have refused to sign the PM-SHRI MoU:

  1. They demand 100% central funding for the scheme.
  2. They object to the mandatory implementation of the NEP 2020 in its entirety.
  3. They refuse to upgrade local body schools.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) 2 and 3 only

D) 1, 2 and 3

Answer: B

Explanation: The primary ideological objection of Kerala and Tamil Nadu is the mandated complete adoption of the NEP 2020, not the school types or funding ratios.

Q7. Which Article of the Indian Constitution grants the Union government the power to make discretionary public grants, forming the basis for Centrally Sponsored Schemes?

A) Article 275

B) Article 280

C) Article 282

D) Article 293

Answer: C

Explanation: Article 282 empowers both the Union and States to make grants for any public purpose, allowing the Centre to fund CSS like PM-SHRI.

Q8. The PM-SHRI scheme envisions upgrading schools into "Green Schools". Which of the following is NOT typically a mandate of this green initiative?

A) Installation of solar panels

B) Cultivation of nutrition gardens

C) Mandatory use of electric school buses

D) Water conservation systems

Answer: C

Explanation: While PM-SHRI strictly focuses on solar energy, water conservation, and nutrition gardens, mandatory electric buses are not a specified component.


📜 Previous Year Question Style (PYQ)

PYQ 1:

Regarding the National Education Policy (NEP) 2020, which of the following is its primary structural objective as showcased by the PM-SHRI scheme?

A) Privatising primary education across all states

B) Shifting the schooling system to a 5+3+3+4 structural design

C) Restricting higher education strictly to central universities

D) Making English the mandatory medium of instruction up to Class 8

Answer: B

Explanation: NEP 2020 replaces the traditional 10+2 schooling system with a progressive 5+3+3+4 pedagogical structure, which PM-SHRI schools will demonstrate.

PYQ 2:

Consider the following statements regarding 'Education' in the Indian Constitution:

1. Education was originally a part of the State List in the Seventh Schedule.
2. The 86th Constitutional Amendment made the Right to Education a Fundamental Right under Article 21A.
3. The Union government has no legislative power over state university education.

Which of the above statements is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 only

D) All of the above

Answer: A

Explanation: Statements 1 and 2 are correct. Statement 3 is incorrect because Education is in the Concurrent List, giving the Union concurrent legislative power across the sector.

PYQ 3:

Assertion (A): The Union government can effectively influence state educational policies despite education being managed locally by state administrations.

Reason (R): Centrally Sponsored Schemes provide conditional financial grants that states rely on, allowing the Centre to mandate policy alignment.

A) Both A and R are true and R is the correct explanation of A.

B) Both A and R are true but R is not the correct explanation of A.

C) A is true but R is false.

D) A is false but R is true.

Answer: A

Explanation: Cooperative federalism in India often features the Centre leveraging financial grants (Reason) to ensure states align with national policies like NEP 2020 (Assertion).


✍️ Mains Answer Pointers

Question 1 (150 words): Examine the significance of the PM-SHRI scheme in overhauling India's school education system.

  • Introduction: Briefly define PM-SHRI as a centrally sponsored scheme designed to upgrade 14,500 schools to showcase NEP 2020.
  • Body Point 1: [Pedagogical shift] Moves away from rote learning toward holistic, inquiry-driven, and discovery-based learning environments (5+3+3+4 structure).
  • Body Point 2: [Infrastructure upgrade] Establishes sustainable "Green Schools" equipped with solar panels, smart classrooms, and modern labs.
  • Body Point 3: [Mentorship role] PM-SHRI schools are mandated to act as nodal exemplar institutions to mentor other schools in their respective regions.
  • Conclusion: Conclude that PM-SHRI acts as a practical laboratory for NEP 2020, essential for creating a future-ready, skilled workforce.
  • Data/Diagram to include: Flowchart showing the 5+3+3+4 structure replacing the 10+2 system.

Question 2 (250 words): The linking of Centrally Sponsored Scheme funds to the adoption of specific national policies often creates friction in Centre-State relations. Discuss this statement in the context of the recent impasse over the PM-SHRI and Samagra Shiksha Abhiyan funds.

  • Introduction: Introduce the concept of fiscal federalism and how the Centre uses Article 282 grants to drive national agendas in Concurrent subjects like Education.
  • Body Point 1: [Constitutional background] Education's shift to the Concurrent List (1976) allows overlapping jurisdiction, but the Centre holds superior financial leverage.
  • Body Point 2: [Current event analysis] Detail how the Centre withheld 2023-24 Samagra Shiksha funds from West Bengal, Kerala, and Tamil Nadu to force PM-SHRI / NEP 2020 adoption.
  • Body Point 3: [Political dimension] States argue that mandatory adherence to NEP 2020 violates their autonomy to design culturally and regionally specific educational models.
  • Body Point 4: [Economic dimension] The 60:40 funding model burdens states financially while the central government dictates the policy framework.
  • Body Point 5: [Comparative dimension] Unlike the USA where education is purely a state prerogative, India's quasi-federal nature centralises policy via financial conditions.
  • Body Point 6: [Impact on citizens] Political stalemates freeze crucial funds, directly degrading the quality of education and infrastructure for students.
  • Conclusion: Suggest that cooperative federalism requires dialogue rather than financial coercion; mechanisms like the Inter-State Council should resolve such policy differences.
  • Data/Diagram to include: Venn diagram showing State funding (40%) + Centre policy/funding (60%) = Overlapping jurisdiction friction.

⚠️ Examiner Trap

Explain 3 common mistakes aspirants make on this topic.

  • Trap 1: Students often confuse PM-SHRI with Samagra Shiksha. The correct fact is that PM-SHRI is a targeted scheme for upgrading 14,500 exemplar schools, whereas Samagra Shiksha is the broader overarching umbrella scheme for all school education in India.
  • Trap 2: A common wrong assumption is that PM-SHRI involves building entirely new central government schools (like Kendriya Vidyalayas). The reality is that the scheme exclusively upgrades existing state, local body, or central schools.
  • Trap 3: Many students miss the constitutional trigger when answering questions on this topic. Always remember education was moved to the Concurrent list in 1976 (42nd Amendment); without this detail, Mains answers on Centre-State education disputes are incomplete.

🧭 Exam Tip

  • Prelims: Examiners prefer targeting the exact funding ratios (60:40), the nodal ministries, and specific qualitative components like the "Green School" mandate of PM-SHRI.
  • Mains: The focus will firmly be on Polity (GS Paper 2). Expect questions linking Centrally Sponsored Schemes (Article 282) to the friction points in cooperative and fiscal federalism.
  • Interview: Be prepared to defend or critique whether tying essential funds to policy implementation is a violation of state autonomy or a necessary tool for maintaining national standards.
  • Prediction: There is a high probability of a Prelims statement-based question comparing the legacy 10+2 schooling system with the NEP's new 5+3+3+4 structure implemented across PM-SHRI schools.