In today's fast and modern world there is a huge increase in all fields of knowledge. Educationally, it has become very important to maintain our existence at the global level. According to the University Grants Commission Act of 1956 (UGC Act) the University Grants Commission and the Central Government Notification dated 1956 have given statutory status to the University Grants Commission. The commission is working to maintain the quality of higher education, coordinate higher education activities and promote teaching research and development. In the present research essay, the University Grants Commission through its various schemes (2002 to 2012) provides basic facilities, educational facilities and research facilities to the colleges with special reference to the financial support of the college. What is its impact on development? An attempt has been made to shed light on this through research.