... [It] is difficult, if not downright counterproductive, for public colleges and universities to tap private resources or seek to leverage old school ties with alumni to raise funds. The University Grants Commission’s practice of deducting such philanthropic contributions from a university’s grant-in-aid leaves little incentive for these institutes to conduct aggressive fundraising campaigns. While philanthropy cannot substitute public investment in education, there is certainly space for private players — at the individual and corporate levels — to drive change. An enabling regulatory regime would only help. [Bold emphasis added]
That's from this editorial in The Indian Express.
Is it true that UGC actually deducts "philanthropic contributions from a university's grant-in-aid"? Are our regulations really this bad?