New Delhi, Feb 28 (UNI) Indian Institute of Technology (IIT) Alumni welcomed the increase in education cess from 2 to 3 per cent in the Union Budget today and hoped that the money would be spent in improving primary education in the country.

''The national means cum merit scholarship of Rs 6000 per child proposed in the Union Budget will help in bringing down the school drop out rate in the country,'' Kharagpur IIT Alumni Association Secretary Y P S Suri said.

He said, apart from primary education, the biggest challenge faced by the various IIT is retaining faculty and finding new teachers ''Major steps need to be taken to retain the present faculty in IIT's including financial incentives, more innovation and infrastructure facilities and to attract new blood, host of packages will have to be announced,'' he added.

Mr Suri said it is becoming difficult to attract teaching faculty with the present pay packages and infrastructural facilities.

''With universities in research-active nations, including China, switching over to the star system- where for leading academics salaries and research funding are allowed to rise to match productivity - there is no choice for India,'' he pointed out.

Mr Krishan Khanna another IIT Alumni, said, ''despite a provision of Rs 10,393 crore in the union budget for primary education, it is still difficult to check drop out rate. More than 80 per cent children still drop out before primary education is completed in the country.'' UNI