The Delhi Cabinet on Monday decided to grant scholarship to socially and economically backward students studying in universities, aided, un-aided and government affiliated institutions in the capital.
The Cabinet, presided over by Delhi Chief Minister Sheila Dikshit, also approved guidelines to permit new institutions to run courses from Lal-dora and extended Lal-dora areas.
Briefing media after the meeting, Dikshit said the government has taken a "big step" to support the socially and economically backward students.
To offer the scholarship, the Cabinet decided to constitute Delhi Higher Education Aid Trust which would be headed by the Higher Education Minister.
The scholarships would be given to students studying in a university, college and other institutions affiliated to a University established under any law made by the Legislative Assembly of Delhi, she said.
A Higher Education Scholarship Fund would also be made functional under Section 15 of the Delhi Professional Colleges or Institutions Act, 2007.
The government would contribute an amount of Rs one crore as corpus fund for the purpose, officials said.
The government would also allow self-financing institutions to run second shift on the condition that they will deposit 25 per cent of the total fee collected from students admitted in second shift with the Higher Education Scholarship Fund.
Dikshit said the trust will also provide education loans to socially and economically backward students and to grant stipend, rewards and allowances and other financial assistance.