The Government of India, while approving the setting up of AER Centre stipulated that the Centre would undertake the following activities:

1. Make a study of changes in rural economy by means of survey of a number of selected villages each year and resurvey of the same group of villages     at an interval of say, five years;

2. Conduct ad-hoc investigations into problems of interest to the Ministry of Agriculture, Government of India;

3. Carry out research on fundamental problems relating to agricultural economics of the country;

4. Give technical advice to the Government of India and concerned State Governments on such issues as, with mutual agreement, may be referred to the Centre.

It was also desired that the AER Centers would maintain necessary contacts with each other and also with the Ministry of Agriculture.

Where do we get our money from?
The AER Centre is fully financed by the Ministry of Agriculture, Government of India. It started functioning on Dec 1972 with an initial annual grant of Rs.10,000 only. With the expansion of its activities and the increase in strength of the staff, the grant level has now increased manifold. This grant is made for the regular work of the Centre, i.e., conducting studies assigned to it by the Government of India and studies formulated by the Center’s faculty on its own. The Centre has also been taking up from time to time some ad-hoc studies on behalf of / in collaboration with some other national and international agencies such as World Bank, USAID, GTZ, ICIMOD, CIP, NJPC, SJVN and different Departments of State Government. 

There is no financial burden, of any sort, on H.P. University.  On the other hand, the Centre is contributing to H.P. University funds by way of paying institutional charges and part of consultancy fee (as per rules) from the externally funded projects.