UGC NET Questions (Paper – 1)

Internal resource generation refers to the efforts of an institution to raise funds from sources other than routine government grants and student fees. Consultancy, alumni donations and industry-funded chairs are examples of such initiatives driven by the institution’s own activities and networks. The stem lists exactly these kinds of mechanisms, which are typically categorised under internal resource generation. Therefore, Option C is the correct answer.

Option A:
Internal resource generation enhances financial autonomy and enables universities to invest in research, infrastructure and innovation without relying solely on state funding. It often reflects an institution’s reputation and linkages with society and industry. These characteristics correspond closely to the description in the question.

Option B:
External resource generation could be interpreted as funds obtained from donors or agencies outside the institution, but within higher education finance discourse, the term “internal resource generation” specifically denotes institution-initiated efforts like consultancy and alumni support. Hence, this option is less accurate in this context.

Option C:
Public resources usually refer to government or taxpayer funds allocated through budgets and grants. The stem clearly focuses on alternative sources like consultancy and industry chairs, not routine public funding, so this option is not suitable.

Option D:
Statutory resources would imply funds mandated by law or fixed by regulation, which is not how consultancy income or donations operate. They are discretionary and negotiated, so this option does not match the concept being tested.